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  • #969915
    sparky1
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    Hi my name is clint, im in the process of starting my business as a electrical contractor but stuck with problem regarding paying and charging gst.
    Sounds dumb but i would like to know a few things before i see my accountant.
    if i buy items at a wholesaler with gst included in the invoice, do i recharge that same amount to the customers with my 10 percent markup and then charge gst on that or do i deduct the gst from the wholesalers invoice i paid and charge that price, sorry if its hard to understand.
    eg wholsalers price is 110 inc gst
    i then markup that price to 121
    then do i charge gst on that price
    which is 133
    or buy at 110
    remove gst amount back to 100 and add markup to 110 then charge gst making it 121
    thanks to anyone who can clarify this for me

    #1041540
    marvelit
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    • Total posts: 169
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    Example:

    buy at 110 inc gst
    sell at 166 inc gst

    100 bux ex gst purchase price

    149.40 sell price ex gst

    49.40 profit


    Original GST paid on purchase wholesale : 10 Dollars

    Resold with GST amount : 16.60

    You owe the government 6.60

    tadaa! :)

    #1041541
    sparky1
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    • Total posts: 2
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    thanks for your help mate

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