Motor Trade

You sell a vehicle to your GST registered customer for $155,000 (inclusive of ARF, COE, RF, Road Tax but excluding GST).

For GST reporting purposes

Value of standard-rated supply: $39,250

Output tax due: $3,532.50

You sell a vehicle to your non-GST registered customer for $158,533 (inclusive of ARF, COE, RF, Road Tax and GST).

For GST reporting purposes

Value of standard-rated supply: $39,250.46 (i.e. $42,783 - $3,532.54)

Output tax due: $3,532.54

You should reflect the full selling price on your tax invoice and state how the GST is computed (e.g. 9% GST @ Selling Price x 50%).

No, you cannot claim any input tax on the purchase.

No. You cannot issue a tax invoice for sales made under the Gross Margin Scheme. You can only issue a normal sales invoice which must have the following details:

1. Your name, address and GST registration number;
2. Your customer's name and address;
3. Invoice number;
4. Invoice date;
5. Stock book number;
6. Particulars of vehicle (registration, engine and chassis numbers, make and model);
7. Total price; and
8. The statement 'This vehicle is sold under GST Gross Margin Scheme. Both the seller and buyer cannot claim any input tax on the vehicle.'

Please note that the GST chargeable is not to be shown on the invoice.

No. For the first sales transaction, no GST has to be accounted for. For the second sales transaction, you have to account for GST on the gross margin of the goods.

You cannot offset the loss in the first sales transaction against the gross margin on second sales transaction for the purpose of determining the total GST to be accounted for.

When you dismantle a vehicle into various parts and sell/scrap the dismantled vehicle parts, you need to charge and account for GST on the full selling price of the vehicle parts.

You cannot use the Gross Margin Scheme for sale of vehicle parts.

No. As the cost of the 'free gifts' would have already been included in the selling price of the vehicle sold, you need not account for GST again on the free gifts.