Hey guys I have to ask if you know just how legal it is to quote a price for a part excluding GST. I don't know of any other industry other than car wreckers that quote prices excluding and Im wondering just how legal it is to do so.
allan_mac,
Sep 26, 11:28am
It should be explicit that the quote is excluding GST. Otherwise under the Fair Trading Act, a consumer is entitled to treat it as inclusive of GST.
Many business to business quotes are assumed to be GST exclusive, as most businesses are GST registered, and the GST portion is claimable. So, not exclusive to car wreckers to quote excluding GST.
gman35,
Sep 26, 11:37am
AND why do they ? A business purchasing off them (for related use) knows they can claim it back. As an "aside" question, I am a retailer (so am GST registered like any business) why is it that I can claim GST back on stock / expenses as part of my "business" which I get income through more or less , yet my staff cannot ?
tamarillo,
Sep 26, 11:40am
As long as it's stated its exc gst. I worked in wholesale b2b and always quoted exc gst. That's how those customers wanted it as they wanted the actual cost to them as they claim it all back. Wondering, would same wrecker quote me, public retail buyer, without gst?
lk104,
Sep 26, 12:12pm
As above, it is legal as long as its stated excl gst. For retail customers we always quote including gst but to trade customers we quote excl gst. Don't know why its done, just always been done that way. I do think we should be quoting incl gst always.
floscey,
Sep 26, 12:39pm
we also quote parts to the trade excluding gst and including gst to retail.
gammelvind,
Sep 26, 1:39pm
Selling primarily to the panel and paint trade all my pricing is plus gst.
I agree with IK104 that it would be better if everyone just used inc gst as the standard term.
hamhonda,
Sep 26, 2:24pm
As a automotive dismantler (not wrecker, bad boy kaz) I was taught when I started in the game at 15 that all quoted prices were GST exclusive, that all people also in the game (garages, beaters, etc) knew the quoted price was GST exclusive but if we quoted to the public that we had to tell them that it was exclusive. As most quoted prices to garages etc were a retail price they would get a discount as well, usually 20%, then once bill was paid we'd also loose another 15% (or 10% when I started).
ozz1,
Sep 26, 3:26pm
kaz did you get 20% discount?. its hard. all $ i quote to motor trade customers are $ . - discount + gst. as they are not paying cash. and when quoting cash customers i give the a total $. sometimes including or sometimes + gst. then they come in and say"+gst? " you never said that? thinking that you just got stung . either way cash or account sales. we have to pay gst. example today rang repco re timimg belt. youre cost ian. $32. got bill and $32 + gst. no complaints here. as an aside. i lost a trade customer a few years ago. "quote" you quoted me $35 less 20%+gst " and sold to cash customer for for $45". and i ask? "so.what $ did you quote your customer?" reply "65+gst" . no wonder customer shops around. >>> and this was supposed to be MY fault?
kazbanz,
Sep 26, 3:37pm
Nahh--wrecker has a better ring to it-- Its just a source of frustration for me to be honest. Its the only area in my business where Im EVER quoted ex gst.
ml6989,
Sep 26, 3:45pm
kazbanz wrote:
Nahh--wrecker has a better ring to it--
Dismantlers or if you like, auto recyclers. Even had one who called it a 'scrapyard'. I explained the errors of his ways and we are now good friends!
bitsy_boffin,
Sep 26, 3:54pm
Because to retail customers, the price they care about is inclusive because ultimately that's the cost to them. To business customers, the price they care about is exclusive because ultimately that's the cost to them.
In other words, quoting inc for retail and ex for business saves the customer mental gymnastics.
But you should always explicitly state if it's inc or ex to be clear.
tgray,
Sep 26, 6:20pm
Maybe we should advertise cars ex GST. $5200+GST sounds better than $6000.
allan_mac,
Sep 26, 6:34pm
Because your staff/employees are not conducting a GST taxable business . If it was, they would have to pay GST on their wages.
nzjay,
May 3, 7:11pm
My trade (Electrician ) is always quoted parts from Trade Suppliers less GST. Any Retail price normally includes GST unless otherwise noted.
Since the public registrations are closed, you must have an invite from a current member to be able to register and post in this thread.
Have an account? Login here.