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  • Installers

    As an installer, you make a taxable supply when you sell and/or install a system if you're registered or required to be registered for GST.

    GST on your sales

    The system owner may choose to assign their right to STCs to you in return for an 'up-front discount' on the purchase and installation price of the system.

    You calculate your GST liability based on the full price of the system and/or installation – not the discounted or reduced amount.

    Purchasing STCs

    You are entitled to claim GST credits for the value of the assignment of STCs if the system owner who has made the assignment to you is registered or required to be registered for GST. You will also need to get a tax invoice from the system owner.

    Example: Installer – GST on sales

    Bill is an installer of solar water heater systems. Bill installs a system at Maree's home for a GST-inclusive price of $6,700. This price includes the up-front discount of $1,000 for Maree, as she assigned her right to create the STCs for the system to Bill. The invoice to Maree shows:

    Invoice

    System and installation $7,700 (GST-inclusive)

    Less assignment of STCs $1,000 (GST-exclusive)

    Total payable $6,700 (GST-inclusive)

    The supply of the installed system to Maree has a GST-inclusive price of $7,700. Bill is registered for GST and is liable to pay GST based on one-eleventh of this price, which is $700.

    Maree receives an 'up-front discount' of $1,000 for the assignment of the right to create STCs, and she pays a net price of $6,700 (GST-inclusive price of $7,700, less $1,000 up-front discount).

    Bill cannot claim GST in relation to $1,000 value of the assignment, as Maree isn't registered or required to be registered for GST, and the system is for personal use and is not used in any business activity.

    End of example
      Last modified: 25 Feb 2020QC 24820