Paying sub-contractors registered for GST

Discussion in 'Business Accounting, Tax & Legal' started by Spykey, 26th Jan, 2015.

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  1. Spykey

    Spykey New Member

    Joined:
    1st Jul, 2015
    Posts:
    1
    Location:
    NSW
    Hi all,
    I just registered myself for an ABN number and got my first job from a company.


    However, I'll use sub-contractors to get the work done.

    One of the contractor is registered for GST.

    Let say I quoted the job for $12x and the company will pay me that amount.

    Then:
    (i) $5x will go to subcontractor-A who is not registered for GST.
    (ii) $5x will go to subcontractor-B who is registered for GST.
    (iii) $2x is what is left for me.

    Can someone clarify how to deal with subcontractor-B who is registered for GST?

    Do I have to charge GST from the company on top of the $12k then pay GST for Subcontractor-B?

    Cannot find enough information online.


    Thanks!
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    42,005
    Location:
    Australia wide
    If you are registered for GST you will charge GST to the purchaser of your services.

    If you are buying services off someone else they will charge you GST if they are registered for GST.