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  • History of issue 9 - Motor vehicles issues register

    Issue 9.a withdrawn from the motor vehicles issues register effective from 16/01/2004.

    Issue 9 b and 9 c withdrawn 29/01/2004.

    9.a.Where a contract for the sale of a vehicle is prepared prior to 1 July 2000, but the vehicle is not delivered until after 1 July 2000, is the vehicle subject to wholesale sales tax or GST?

    Whether goods are subject to wholesale sales tax or GST depends on the time of supply, which, under section 6 of the Transition Act, is when the goods are removed from the supplier's possession. If the time of supply is on or after 1 July 2000, the goods will be subject to GST - if the time of supply is before 1 July 2000, the goods will be subject to wholesale sales tax. Therefore, a vehicle, which is not delivered until on or after 1 July 2000 will be subject to GST, notwithstanding the fact that a contract may have been signed prior to that date.

    GSTR 2000/7

    9.b What is the position with " scheduled servicing" arrangements if a vehicle is sold prior to 1 July 2000, but the "scheduled servicing" extends beyond 1 July 2000?

    Where a purchaser of the vehicle has the option of taking up the "scheduled servicing" arrangements, it will be regarded as a separate supply. These arrangements are subject to GST to the extent that the arrangement relates to the period on or after 1 July 2000, even if the vehicle was purchased prior to I July 2000.

    9.c Can parts used in repairs spanning pre and post 1 July 2000 be taxed under different tax regimes?

    Yes.

    Where parts are attached to a vehicle, as part of the repair process, prior to 1 July 2000 sales tax will apply to the parts

    The labour costs attributable to that part of the repair process undertaken prior to 1 July 2000 will not be subject to GST

    Where parts are attached to a vehicle, as part of the repair process, from 1 July 2000 GST will apply to the parts

    The labour costs attributable to that part of the repair process undertaken from 1 July 2000 will be subject to GST

      Last modified: 29 Jan 2004QC 17348