Luxury car tax (LCT) applies to all supplies and importations of luxury vehicles where the value (including GST) exceeds the LCT threshold. The value includes any third party MVIP and the GST payable on the MVIP.
If you are a dealer
You report and pay any LCT on the total consideration received for the sale, including the consideration received from the customer and the third party MVIP received from the manufacturer.
If LCT is payable and you receive a third party MVIP in a later period and you were:
- aware when you made the sale that you would receive an MVIP of a known amount, you include the MVIP when you calculate and report the LCT
- unaware of the MVIP (or uncertain of the exact amount), you make an adjustment in your activity statement for the increased LCT.