How is it legal to charge GST on a used vehicle?
I don't quite understand how this happends considering when the vehicle was new or imported it has had GST charged on it.
Now I do understand "Goods and Services", so then I can see a dealership charging GST on their "Services" but the "Goods" on a used vehicle.
Also I want people to know companies make money on GST! On the quarterly installment plan the first 30K you only submit 4% to the government and keep 3% to your self after that you submit 5% and keep 2%. Now you know why dealerships for example are completely happy with this, casue if the person who bought the car from the dealerships trades it back in for a new one the dealship got to charge GST twice on the old vehicle and new charge for the new vehicle the guy got! HAhahaha.
Fuck the government! We are all little sheep.
Re: How is it legal to charge GST on a used vehicle?
Quote:
Originally posted by Hollywood
I don't quite understand how this happends considering when the vehicle was new or imported it has had GST charged on it.
Fuji is right for a car that you are importing. The GST was never paid.
For a used car that you buy at a dealership, here is the math.
1. You go in and buy a new $40,000 car.
2. You trade in your $20,000 car.
Cost of the car = $40,000 + GST (2,800) = $42,800
Here is what you pay.
$40,000 - $20,000 + GST = $21, 400
You only pay for half of it. The government gets the other half when the stealership sells your used car. The government is only looking for their tax once.
Quote:
Now I do understand "Goods and Services", so then I can see a dealership charging GST on their "Services" but the "Goods" on a used vehicle.
Also I want people to know companies make money on GST! On the quarterly installment plan the first 30K you only submit 4% to the government and keep 3% to your self after that you submit 5% and keep 2%. Now you know why dealerships for example are completely happy with this, cause if the person who bought the car from the dealerships trades it back in for a new one the dealship got to charge GST twice on the old vehicle and new charge for the new vehicle the guy got! HAhahaha.
Now this is only half true. What you are describing is the quick method of GST calculation. This is to make it easier for small businesses that don't have a book keeper on staff. This works both for and against the business. If you utilize the quick method, if you make a big purchase, let's say a large piece of equipment, you can't demand a credit for the GST you spent on that item. If you don't need anything for your company, then you are making that extra 2%.
Also, you can only utilze the quick method if your gross income in 4 of the last 5 quarters is less than $200,000. If you go over that amount, you automatically have to go through full disclosure. Most used car places should sell more than that in a month which makes your statement untrue.
Quote:
Fuck the government! We are all little sheep.
:werd: