Browse Forums Building A New House 1 Apr 17, 2015 7:09 pm Hi All, Just trying to get my head around how to calculate the builders margin. Our builder charges a flat rate of 20%, if we wanted to get the builder to supply something that costs $1000 including GST is the cost to us: 1000 - 82.43 (9% gst) = 917.43 + 183.48 (20% builders margin) = 1100.91 or do they get to include the GST so the charge to us is 1000 + 20% = 1200? I don't see why we would need to pay for the GST if they are purchasing it and they get an input tax credit but nothing surprises me anymore. Also big ticket items (like fireplaces for instance) can we ask to see the amount they actually paid. I am trying to work out the cost of a fireplace - i have had Jetmaster quote me and it seems even taking into account the builders margin at full retail less GST they are going to charge me 3500 to frame the box with. thanks Lou Re: How does Builders Margin work 3Apr 17, 2015 11:50 pm The person selling to the consumer becomes the tax collector. You pay in the margin as the builder is providing a service for the margin. Re: How does Builders Margin work 5Apr 18, 2015 11:55 am Just to make where the GST goes clearer, the equation is like this: Supplier cost after input credit: 1000 - 90.91 (1/11 gst) = 909.09 Supplier charges: 909.09 * 1.2 = 1090.90 ex gst Add GST on sale: 1090.90 * 1.1 = 1200 In the end, GST is really only charged to the final purchaser, but there's all the paying and crediting back all the though supply chain to try to keep it hard to dodge it, .. and to give the accountants something to do. Block of two storey townhouses requires painting on the roof. A brick parapet wall separates each unit and extends above the tiled roof. The parapet walls require sealing… 0 3503 I posted the floorplan on Houzz.com forum and got some really good ideas and advice from people there. Then we reached out to a couple of renovation companies and one… 5 10106 1) I had requested R6 ceiling insualtion batts, however I noticed that on some areas there are huge gaps which will allow hot air to sweep in, and also noticed black/grey… 0 3604 |