12.1.d. Is a warranty claim made by a dealer for work carried out in respect of a manufacturer/importer warranty a tax invoice?

Depending on the terms of the agreement between the dealer and the manufacturer/importer, the claim may be either a quotation or an invoice for a taxable supply, that is, does the claim notify an obligation to make a payment? A major factor in deciding this issue will be whether the price is determined by the manufacturer/importer after receipt of the claim, or by the dealer before the claim is submitted.

If a taxable supply has been made and an obligation arises, the documentation sent to the manufacturer/importer to claim payment for the repair would be an invoice and may satisfy the requirements of a tax invoice. Any subsequent change in price will be an adjustment event and would normally require the issue of an adjustment note. If, however, the warranty claim is a quotation for work yet to be approved, it will not be a tax invoice.

    Last modified: 07 Jun 2012QC 16411