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Can an Indonesian company charge VAT to an Australian company?

If I pay VAT on fittings for a new bathroom, should the company charge VAT again on the total bill?

  • I am buying a new bathroom suite. The company doing the work has charged me the VAT-inclusive price on the fittings from their catalogue. They are then adding VAT to the total ...show more

  • Answer:

    You are right of course. Even our greedy politicians only make you pay the vat once ! If you paid the vat on the hardware, you only owe them vat on the fitting charge

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First make sure that the catalogue price does include VAT, then ask them to amend their invoice to show the materials cost ex VAT, then VAT can be added to the whole invoice at the end, and you will only be paying VAT once on the materials cost. Many building companies have a mark-up on the material costs, but they shouldn't give you a price and then add a mark-up!. Charging the VAT twice in this way is not in the best interest of the builder anyway - too long and complicated to explain easily, but the company should understand. Have you queried this with the buiolder? It could simply be a mistake.

Cala

yes sounds like it

Gerald

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