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  • #993146
    CleaningAgency1
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    Hi,

    I’ve been looking to start a cleaning company like that of http://www.helpling.com.au, i can see they have the option to charge GST on their prices.

    They charge $29 per hour, do they not pay GST on their initial transaction? or does the business they sub contract to do the work pay GST only if they’re registered.

    Anyone’s help with this would be much appreciated as i’m very confused.

    Many thank

    #1189938
    MD Clean
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    The customer pays GST to helping if helping is registered for GST. Helping receive an invoice from the contractor with or without GST depending on if the contractor is registered for GST. Helping remit that portion of the GST it has collected and not passed on to the contractor to the ATO as does the contractor if they received some GST from Helping. The general principle is that on a $29 per hour service, a maximum of $2.64 GST should be charged (subject to the conditions above) and remitted to the ATO.

    Accountant’s advice is needed for these types of questions though.

    #1189939
    Anonymous
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    Hi CleaningAgency1,

    Welcome to Flying Solo :)

    I hope Paul’s answer helps you, but please feel free to ask more questions if you need to.

    All the best,
    Jayne

    #1189940
    alliedib
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    Slightly OT (but not really):
    from the helpling website:

    *Price inclusive of 10% GST where Cleaning Business is registered for GST.
    No GST will be charged where Cleaning Business is not registered for GST.Price payable by customer remains $29.00 regardless of Service Provider GST status.


    Assuming Helpling is registered for GST, wouldn’t they be required to charge GST, irrespective of whether the cleaner is registered or not? The invoice to the consumer is from a GST registered business (Helpling), so would need to include GST (or at least I thought it would).

    #1189941
    MD Clean
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    alliedib, post: 222889, member: 37857 wrote:
    Slightly OT (but not really):
    from the helpling website:

    *Price inclusive of 10% GST where Cleaning Business is registered for GST.
    No GST will be charged where Cleaning Business is not registered for GST.Price payable by customer remains $29.00 regardless of Service Provider GST status.

    Assuming Helpling is registered for GST, wouldn’t they be required to charge GST, irrespective of whether the cleaner is registered or not? The invoice to the consumer is from a GST registered business (Helpling), so would need to include GST (or at least I thought it would).

    I would have thought so too… maybe that is why parts of the sharing economy is so disruptive?

    Actually, come to think of it, it would be interesting to see if they even offer Tax Invoices. I remember buying a Nexus phone and Google issued an Invoice. If you wrote to them, they would send a Tax Invoice.

    #1189942
    bb1
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    MD Clean, post: 222900, member: 58759 wrote:
    Actually, come to think of it, it would be interesting to see if they even offer Tax Invoices. I remember buying a Nexus phone and Google issued an Invoice. If you wrote to them, they would send a Tax Invoice.

    When you do a phone top up, you don’t get a tax invoice either.

    But on the other question about GST or not, just asking the question are they acting as a booking agency or the service provider.
    Not an accountant so this could be wrong, if just a booking agency, then it will the cleaner providing the service, and the invoice, and the cleaner paying the booking agency a percentage.
    But if helpling are collecting payment I would have thought they would have to charge GST on everything. but again don’t know.

    Just one comment, that is a cheap price for cleaning, especially if some of it is going on GST, and you have to wonder how the cleaners will put food on the table.

    #1189943
    Burgo
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    My thoughts on this is that every one concerned should charge GST registered or not because one day a tax man will come along and ask WHY?
    I understood that GST was payable on all goods and services unless it was fresh food.
    I have and still do charge GST those being retired I am no longer registered and who is to know If you don’t charge GST the customer will question WHY?
    Travel booking agents charge GST and every other booking agent charges GST so why aren’t you.

    #1189944
    bb1
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    Burgo, post: 222928, member: 58 wrote:
    My thoughts on this is that every one concerned should charge GST registered or not because one day a tax man will come along and ask WHY?
    I understood that GST was payable on all goods and services unless it was fresh food.
    I have and still do charge GST those being retired I am no longer registered and who is to know If you don’t charge GST the customer will question WHY?
    Travel booking agents charge GST and every other booking agent charges GST so why aren’t you.

    Burgo it is illegal to charge GST if you are not registered, and there are penalties that can be applied.
    People do not charge GST if you are not registered

    #1189945
    NickKaro
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    My view is that the booking site is providing some sort of service (hence the % fee), therefore there should at least be GST on their portion of the total fee IF they are registered or required to be registered for GST.

    #1189946
    bb1
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    NickKaro, post: 222980, member: 12942 wrote:
    My view is that the booking site is providing some sort of service (hence the % fee), therefore there should at least be GST on their portion of the total fee IF they are registered or required to be registered for GST.

    Nick, If the booking company is charging the cleaning company a booking fee separate to the cleaning fee paid by the client to the cleaner , wouldn’t any potential GST component be between the booking company and the cleaner. In the case the service (booking) is provided by the booking company to the cleaner. whereas the cleaning is a separate transaction between the cleaner and the client.

    #1189947
    alliedib
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    bb1, post: 222981, member: 53375 wrote:
    Nick, If the booking company is charging the cleaning company a booking fee separate to the cleaning fee paid by the client to the cleaner , wouldn’t any potential GST component be between the booking company and the cleaner. In the case the service (booking) is provided by the booking company to the cleaner. whereas the cleaning is a separate transaction between the cleaner and the client.

    ‘…Service bookings and receive payments
    We invoice the customer on your behalf and in your name for all completed bookings. You then receive payments twice a month into your nominated bank account”….

    #1189948
    bb1
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    alliedib, post: 223101, member: 37857 wrote:
    ‘…Service bookings and receive payments
    We invoice the customer on your behalf and in your name for all completed bookings. You then receive payments twice a month into your nominated bank account”….

    Missed that, and I see helpling are registered for GST.

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