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  • History of issue 15 - Motor vehicle register

    15.b Can parts used in warranty repairs be taxed under different tax regimes?

    Yes. Parts used in warranties prior to 1 July 2000 will be subject to sales tax regime and not subject to GST. However there may be a sales tax credit available under credit ground CR9 in the Sales Tax Assessment Act, for parts used as replacements under a warranty, where the replacement occurs before 1 July 2000.

    The supply of parts used in warranty repairs after 1 July 2000 may be subject to GST.

    15.e Is a warranty claim made by a manufacturer/importer on an overseas manufacturer a taxable supply?

    (insert the following text, ie, the previous ato view, with a link to 'View history')

    Where the manufacturer/importer makes a claim under a warranty provided by an overseas manufacturer it may not be a taxable supply, depending on the factual circumstances if,

    • no consideration is provided;

    • there is no supply;

    • the supply is not connected with Australia; or

    • the supply would be GST-free.

    15.h Is there GST on warranty repairs on second hand vehicles?

    There is no GST on the parts or labour supplied because there is no consideration provided by the customer. The dealer can claim an input tax credit on parts used for the warranty repairs.

      Last modified: 29 Jan 2004QC 17426