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Supplier not on-charging GST

KN80
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Supplier not on-charging GST

Hi There, 

A contractor has invoice our company for hours worked for the month and included two line items, 1) telephone expenses, 2) Employment Law course fees (required for the role).

 

The contractor is registered for GST but has not included GST on the two expense claims because they have already paid and claimed the GST prior. 

 

Is this correct? Should they still be including the GST or not?

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jenniek
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Re: Supplier not on-charging GST

Hi @KN80 

I don't believe this is true. Anyone registered for GST must charge GST on everything they charge out. They can still claim the GST on the expense they incurred, but it cancels out with the GST they then on-charge to you. You then get to claim the GST - as the end user.

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz
KN80
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Re: Supplier not on-charging GST

Thanks @jenniek , that was exactly my thought process aswell, it just made me question my thinking as I've never encountered this reasoning before. 

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