• Hire purchase agreements and chattel mortgage

    (a) added, (u) updated, (w) withdrawn

    Issue no

    Issue

    Date

    History

    1.1

    What is the meaning of hire purchase for GST purposes?

    7 September 2012(u)

     

    1.2

    Which component of the hire purchase agreement is a financial supply and which component is subject to GST?

    7 September 2012(u)

     

    1.3

    When will entitlement to an input tax credit arise for the recipient of goods in a hire purchase agreement?

    7 September 2012(u)

     

    1.4

    When will liability for GST arise for the financier of goods in a hire purchase agreement?

    7 September 2012(u)

     

    1.5

    Are there special rules for the phasing in of input tax credits on motor vehicles?

    1 January 2001

     

    1.6

    What constitutes (a) an invoice and (b) a tax invoice for a hire purchase agreement?

    2 May 2013(u)

     

    1.7

    What are the GST implications for hire purchase agreements entered into before 1 July 2000?

    1 January 2001

     

    1.8

    How do I know which part of my hire purchase agreement is subject to GST?

    7 September 2012(u)

     

    1.9

    What are the GST implications when the recipient under a hire purchase agreement obtains title to the property, either by making the final payment under the agreement or by making an early pay out of the agreement?

    2 May 2013(u)

     

    1.10

    What are the GST implications if the recipient defaults in making payment under the agreement and the financier repossesses the goods?

    7 September 2012(u)

     

    1.11

    What are the GST implications if the repossessed goods are subsequently sold to a third party, and the agreement provides for any excess to be refunded to the recipient or any shortfall to be recouped from the recipient?

    1 January 2001

     

    1.12

    Will Division 105 of the GST Act apply if the financier sells the repossessed goods to a third party in satisfaction of a debt owed to the financier by the recipient?  

    1 January 2001

     

    1.13

    What are the GST implications if a hire purchase agreement is restructured during the currency of the agreement, where the outstanding balance is refinanced as a new hire purchase agreement?

    2 May 2013(u)

     

    1.14

    What are the GST implications if a hire purchase agreement is terminated during its currency by the financier granting a loan with title passing to the recipient?

    7 September 2012(u)

     

    1.15

    If the recipient accounts for GST on a cash basis, how does the recipient calculate entitlement to input tax credits where the agreement shows the principal and interest components separately, but the instalments do not?

    7 September 2012(u)

     

    1.16

    Can a recipient who accounts for GST on a cash basis pay the GST liability up front in a tax period and claim that whole payment as input tax credit in the same tax period?

    7 September 2012(u)

     

    1.17

    If a recipient accounts for GST on a non-cash basis, how does the recipient calculate entitlement to input tax credits where the hire purchase agreement is for the acquisition of a car that is subject to the car input tax credit limit under section 69-10 of the GST Act?

    7 September 2012(u)

     

    1.18

    If a recipient accounts for GST on a cash basis, how does the recipient calculate entitlement to input tax credits where the hire purchase agreement is for the acquisition of a car that is subject to the car input tax credit limit under section 69-10 of the GST Act?

    7 September 2012(u)

     

    1.19

    What is a chattel mortgage?

    1 January 2001

     

    1.20

    How does a chattel mortgage arrangement differ from a hire purchase agreement?

    2 May 2013 (u)

     

    1.21

    When will an entitlement to an input tax credit arise for a purchaser in relation to the acquisition of a chattel under a chattel mortgage?

    2 May 2013(u)

     

      Last modified: 24 Jun 2015QC 16359