gst & purchase of used cars - need help

good_stuff2009
Community Member
thanks in advance for any help. i can't believe i can't find this answer to my simple question online... newly back to australia after 17 years, don't understand gst and all it's applications. my question is:

if i am purchasing a used car from a private seller, does gst apply? and if so, who pays it? if the car is advertised at $10k, do i pay $10k or more?

thanks!
a bewildered returning aussie expat.
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gst & purchase of used cars - need help

No gst is not added to a private sellers price. If the car is addyed at 10k thats what you pay.

Gst should be included in any price quoted by a business. If somebody with an ABN was selling the car and it was registered as a commercial vehicle then the seller would be liable for the GST component.

Gst is alsom included in the final auction prices of new items sold by business sellers ie GST cannot be charged on top of final auction price

back when GST was introduced some business quoted prices as $xxx +GST.
Hope this helps cheers Dave
TELL ME AND I WILL FORGET, SHOW ME AND I MAY REMEMBER,, INVOLVE ME AND I WILL UNDERSTAND Confucius 450bc
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gst & purchase of used cars - need help

flanmur
Community Member
It chits me with all this GST rubbish as well.
I won a Holden Wagon at a popular auction house for 17k.Then when i went to pay i was slugged gst on the bid price.Then i was slugged a fee from the auction house for their service for selling it to me plus GST.10%+10% on that 10% [11% OK]
[They also slugg the seller 10% plus GST}
welcome to the tax that the Libs said they would never introduce,never ever was the quote.
GST,BAS,patroll,GST on excise,excise,provisional tax.blah blah blah tax,Welcome home to OZ,put your head on a seat and there will be someone along to take care of you shortly..Ho Hum..
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gst & purchase of used cars - need help

flanmur
Community Member
Oh yeah i near forgot.
It was around 19700 for the car..
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gst & purchase of used cars - need help

bobgerald2013
Community Member

I guess gst is not applicable for the private seller.I thought they are limited to the wholeseller meanwhile.:-)


used cars

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gst & purchase of used cars - need help

tstore
Community Member

 


 



 


If it is an auction house of course you will be charged a fee. Hthis is how most auction houses work .The fee is commission for the auction house for selling the vehicle and they would have been upfront about this. They are a business so they will charge GST on this commission fee. Same if you purchased from a used car salesman


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gst & purchase of used cars - need help

If you read Ebay's policy regarding GST any entity selling Ebay cannot add GST, i know there will be arguments between buyer and seller, the best thing for us members to do is report any items where GST is added to final price regardless of who it is selling it, if some other auction house wants to sell on Ebay then they are aubject to the same rules as everyone else - final price is inclusive of GST.

 

 http://pages.ebay.com.au/help/policies/seller-gst.html#q2

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gst & purchase of used cars - need help

And the same applies to 'FEES', the final auction price is inclusive of all fees and GST.
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