Home – New Forums Money matters Should invoice include GST paid for Flight/Taxi/Hotel stays

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  • #983260
    MKBONLINE
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    My company and my client both are registered for GST. I am about to send first invoice to my client. Invoice has my staff daily rate (e.g $1000) and related GST amount (e.g $10). But invoice also include hotel/taxi/plane ticket which my client will reimburse in full amount.

    I capture GST amount as separate line item in the invoice.

    My question is do I need to add GST which i have paid in Flight/hotel/taxi in total GST ? or should I only capture GST for my services (my staff i.e 10).

    The reason for confusion is because my client is registered for GST, his total bill includes my staff as well as Flight/hotel/taxi. So from his point of view he probably will need entire GST not just mine.

    Cheers,
    Manish

    #1141416
    Past-Member
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    I am not an accountant, but from the ATO site … all GST items have to include GST.
    How you list it, is according to whether you add gst in the invoice to each line or once on the overall amount when totalling.
    See more at ATO http://www.ato.gov.au/businesses/pathway.aspx?sid=42&pc=001/003/103&mfp=001/003&mnu=45028#001_003_103

    #1141417
    Alan Maddick
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    So here is an example (hopefully this helps)

    1 day $1000 +$100 GST $1100
    Flights $550 (total actually paid) $550
    ($500 + $50 GST)
    Total Invoice $1650 (inc GST of 150)

    You can express as net + GST or Gross in GST but your invoice would typically include the total payment ( actual $ paid) for airfares and travel etc which includes the 10% GST.

    Feel free to email be a sample invoice at [email protected] if still unsure kind of hard to explain with words without seeing what your doing / not doing and how your brain works. I find some peoples brain works best with gross figures others only understand net figures.

    #1141418
    MKBONLINE
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    Thanks. I have mailed you my sample invoice.

    My concern is that if i split Flight/Taxi expenses as “Sale amount + GST” in the invoice to client, do i have to pay this GST to ATO? As per my contract with the client they will reimburse Flight/Taxi amount on full. I don’t want ATO to take away GST part of it.

    SmallBusinessWorks, post: 161726 wrote:
    So here is an example (hopefully this helps)

    1 day $1000 +$100 GST $1100
    Flights $550 (total actually paid) $550
    ($500 + $50 GST)
    Total Invoice $1650 (inc GST of 150)

    You can express as net + GST or Gross in GST but your invoice would typically include the total payment ( actual $ paid) for airfares and travel etc which includes the 10% GST.

    Feel free to email be a sample invoice at [email protected] if still unsure kind of hard to explain with words without seeing what your doing / not doing and how your brain works. I find some peoples brain works best with gross figures others only understand net figures.

    #1141419
    Anonymous
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    Hi Manish,

    I’m not an expert, but I would think that you should’t include the taxi etc on your invoice at all, but that you should submit a separate expense claim.

    If it’s on the invoice, it will be deemed as income won’t it? And you don’t want it to be treated as such by the ATO.

    I could be wrong though – perhaps one of the bean counters can elaborate…

    Jayne

    #1141420
    Jason@Plumsale
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    Hi,

    I agree with Jayne, you are either reselling it then classed as income, or they re-reimburse the amount and you then do not have to worry about it. If they are re-reimbursing you then don’t add it to the invoice and give them the receipts.

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