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  • Issue 4 – Delivery charges, stamp duty, registration and insurance

    4.a. Does GST apply to costs such as dealer delivery charges, stamp duty, transfer fees, registration and compulsory third party insurance?

    Non-interpretative - other references:

    refer to:

    • paragraphs 195 and 196 of - Goods and services tax: GST treatment of financial supplies and related supplies and acquisitions
    • general principles in GSTD 2000/10 - Goods and services tax: are outgoings payable by a tenant under a commercial property lease part of the consideration for the supply of the premises?

    No, when paid for by the dealer as agent for the customer:

    • stamp duty
    • registration charges
    • transfer fees.

    Yes, GST applies to:

    • dealer delivery charges
    • compulsory third party insurance.

    4.b. How is GST calculated on a motor vehicle and other charges associated with the sale?

    Non-interpretative - other references:

    refer to:

    • paragraphs 195 and 196 in GSTR 2002/2 - Goods and services tax: GST treatment of financial supplies and related supplies and acquisitions
    • general principles in GSTD 2000/10 - Goods and services tax: are outgoings payable by a tenant under a commercial property lease part of the consideration for the supply of the premises?

    Example

    Retail selling price (excluding GST)

    $46,176.00

    Alarm

    $814.00

    Metallic paint

    $704.00

    Dealer delivery

    $1,650.00

    Value of taxable supply

    $49,344.00

    GST @ 10%

    $4,934.40

    Registration

    $203.70

    Stamp duty

    $2,716.00

    Compulsory third party insurance (including $27.00 GST)

    $297.00

    Total amount paid

    $57,495.10

    4.c. Compulsory third party insurance

    4.c. (i) Is an entity entitled to claim an input tax credit in respect of compulsory third party insurance premiums paid before 1 July 2003?

    Non-interpretative - other references (see paragraph 140 onwards of GSTR 2006/10 - Goods and services tax: insurance settlements and entitlement to input tax credits).

    No. An entity is unable to claim an input tax credit for the GST on premiums paid for compulsory third party insurance before 1 July 2003.

    4.c. (ii) Is an entity entitled to claim an input tax credit in respect of compulsory third party insurance premiums paid on or after 1 July 2003?

    Non-interpretative - other references (see paragraph 140 onwards of GSTR 2006/10 - Goods and services tax: insurance settlements and entitlement to input tax credits).

    An entity may only claim an input tax credit for the GST on compulsory third party insurance premiums if the period of insurance which is being paid commences on or after 1 July 2003.

      Last modified: 07 Jun 2012QC 16411