Browse Forums Building A New House 1 Mar 19, 2016 9:53 am Hi all, I am unfamiliar with the various workings of GST, so this question may simply reflect my ignorance of the topic. But, I have a specific question about quotes I am receiving for a custom build and GST. Now, the quotes include prime cost items like a solar system, wood heaters, etc that will be purchased and installed by independent suppliers selected by me. As they are prime cost items, I will pay the full cost, including GST. However, the builder then tallies up the total cost of the build, including prime cost items, and calculates/adds GST according to the total. To me, this means I am paying GST twice on those items. Am I correct? Thanks. Re: Question re GST charges on new build 2Mar 19, 2016 11:29 am You shouldn't be paying twice that is for sure. However based on what you described it is hard to tell if you are or aren't. What should happen is builder buys, pays GST, claims it back, add his margin and adds GST. End result to you is you pay the original GST charges plus GST on the builders premium, but that won't be double. Eg, buy an item worth $11. The GST is $1. Builder claims back $1. They add for example a 20% margin, so makes the item cost $12, adds GST of $1.20, so now YOU are paying $13.20. How this gets shown on an invoice varies so much. Re: Question re GST charges on new build 3Mar 19, 2016 11:50 am If these items are purchased by you and installed by independent suppliers selected by you,then why would the builder include them in his price. Just get the builder to take them out of his price and you take care of them your self (pay them direct) Daniel Simone Unless there were unforeseeable issues with the site, I dont think you should have to pay for contractors errors or poor planning. I'd probably try and be reasonable and… 5 4504 thank you! do we need to get this or our builder before we commence new build on the block? 2 10261 |