GST and Invoicing
The ATO has released a statement clarifying its position on the payment of GST for non registered entities.
“If the entity transferring or selling the STCs is not registered or registered or required to be registered for GST, there will be no GST payable on the transaction.”
Claiming and understanding GST on STCs or other commodities has been the cause of much confusion. Emerging Energy has been in close contact with the ATO to better understand exactly how GST is to be calculated when trading STCs.
Firstly, understanding that GST is a tax applied a good or a service is crucial as we separate all the elements of the transaction when selling or installing eligible systems.
Parts (panels, inverters, racking, water units, turbines etc) along with all costs of labour must be totalled inclusive of GST on the invoice as these are all considered goods and services. A government subsidy (such as STCs) doesn’t fall into either category so must be listed as separate from the final costing. This is usually below the final amount after GST.
For the official ruling from the ATO please download the following pdf.