Any GST for used bike?

[tiMeMac]

Hi,

 

Just wondering whether does GST applicable to 2nd hand bike?

 

Thanks.

[panclanrider]

No.

 

GST is meant for brand new bike only...

[tiMeMac]

ok.. may i know is there any website or sources that actually state that no GST suppose to impose on used vehicle?

 

Thanks.

[panclanrider]

BTW...

 

I think you betta read up this link....

 

2nd hand cash or hire-purchase also make a diff I think....

[NorthPole]

GST is not based on whether your purchase is 1st hand or 2nd hand or xth hand/leg. It is based on whether the seller is GST registered.

 

Thus normally if you buy your bike from a shop, GST is a given.

If you buy from an individual... then no GST.

[tiMeMac]

i see.. Thanks. but it doesn't make much logic.

 

Seem like the same good can be GST-charged many times.

[NorthPole]

i see.. Thanks. but it doesn't make much logic.

 

Seem like the same good can be GST-charged many times.

 

Hohoho... which is why it make perfect logic from a tax generating point of view. hahaha.

[GuiNNeSS]

No.

 

GST is meant for brand new bike only...

 

If that shop is GST registered, u need to pay GST even if he sells u a single dollar item.

 

Whether he declare that sale or not, that's another story.

[panclanrider]

If that shop is GST registered, u need to pay GST even if he sells u a single dollar item.

 

Whether he declare that sale or not, that's another story.

 

Yes, you are right. GST not only accounts for any thing you buy from the shop, even a simple job like servicing can be taxed/charged by the shop provided they want to.

 

Most shops will not charge GST for a second hand bike (even if they are GST registered) and that's what I'm trying to explain...

[contrarian]

Looks like no one on this thread has the right answer.

 

I answered this question twice before. You'll find the answer is here:

http://www.iras.gov.sg/ESVPortal/resources/gstguideformotortraders_final_27062007.pdf

[Jacq]

I think it doesn't make any diff to us.

 

1. GST registered shop, defi we have to pay the 7%. They might not show in the invoice coz at time they only have the total amount.

2. Not GST registered shop, I'm sure their price will be slightly higher coz when they buy from their supplier, they also have to pay GST.

[panclanrider]

Looks like no one on this thread has the right answer.

 

I answered this question twice before. You'll find the answer is here:

http://www.iras.gov.sg/ESVPortal/resources/gstguideformotortraders_final_27062007.pdf

 

My search for the answer 1 week ago leads me to the link you provided too...

 

I tried my very best to decipher but in vain...

 

Thus the answer I gave was a result of a few bike shops that I called to find out...

[NorthPole]

Looks like no one on this thread has the right answer.

 

I answered this question twice before. You'll find the answer is here:

http://www.iras.gov.sg/ESVPortal/resources/gstguideformotortraders_final_27062007.pdf

 

As far as I read the link, GST have to be paid. 3.5% or 7% is still paying GST. Nowhere did I said the GST rate was the same for new or 2nd hand vehicles. Thus may I enquire why I didn't give the right answer when I said GST have to be paid when buying from a GST registered dealer?

 

Now when person A earn $XX thousands, he have to pay tax.

Person B earn $XXX thousands, he also have to pay tax.

 

Now when I say both person A and B have to pay tax... can someone else come along and say I didn't give the right answer because I nebber say person A pay X% and person B pay XX%?

 

Threadstarter asked, " Any GST for used bike?"

 

My answer, " Yes if you buy from a GST registered shop and No if you buy from the previous owner."

 

Please enlighten me as to what is wrong with my answer thank you very much.

[tiMeMac]

Looks like no one on this thread has the right answer.

 

I answered this question twice before. You'll find the answer is here:

http://www.iras.gov.sg/ESVPortal/resources/gstguideformotortraders_final_27062007.pdf

 

Thanks !! That's a great help.

 

What i can understand from the link given, is that only

GST is imposed on the (selling price - buying price).

 

We have problems here.

 

Firstly to the public like us, we wouldn't know what is their

buying price.

 

Secondly, when we purchase the bike, the dealer will impose GST on the selling price itself. (Is it illegal from

IRAS perspective?)

[contrarian]

As far as I read the link, GST have to be paid. 3.5% or 7% is still paying GST. Nowhere did I said the GST rate was the same for new or 2nd hand vehicles. Thus may I enquire why I didn't give the right answer when I said GST have to be paid when buying from a GST registered dealer?

 

Now when person A earn $XX thousands, he have to pay tax.

Person B earn $XXX thousands, he also have to pay tax.

 

Now when I say both person A and B have to pay tax... can someone else come along and say I didn't give the right answer because I nebber say person A pay X% and person B pay XX%?

 

Threadstarter asked, " Any GST for used bike?"

 

My answer, " Yes if you buy from a GST registered shop and No if you buy from the previous owner."

 

Please enlighten me as to what is wrong with my answer thank you very much.

 

In the case of the Gross Margin Scheme, the GST is not to be shown on the invoice as tax to be collected from the customer. the sales invoice (not tax invoice) must have the statement ‘This vehicle is sold under GST Gross Margin Scheme. Both the seller and buyer cannot claim any input tax on the vehicle.’

 

The seller is specifically prevented from issuing a tax invoice and stating the GST amount as being collected for the government. To that extent, the seller does not collect GST from the buyer. However, he has to account for GST to the comptroller under the scheme.

[contrarian]

Firstly to the public like us, we wouldn't know what is their

buying price.

 

You don't need to know their buying price. If they are using the Gross Margin Scheme, the invoice must not show GST.

 

Secondly, when we purchase the bike, the dealer will impose GST on the selling price itself. (Is it illegal from IRAS perspective?)

 

GST should not be calculated on the total price of the bike (even for a new bike), because some of the items in the total price are not subject to GST (like LTA fees).

[tiMeMac]

That's a great information. Hope this can be a sticky to inform every bikers here, if this piece of precious information is not in the sticky yet.

[Shinobi]

yea i agree... GST only on machine and insurance... other than that if ur purchasing any other items (check out for GST registered invoice if no GST invoice = no GST) but their EXTRA charges ( loan fee, admin charges, agreement fee, whatever craps fees or hidden cost there's NO GST).

[lizard]

yea i agree... GST only on machine and insurance... other than that if ur purchasing any other items (check out for GST registered invoice if no GST invoice = no GST) but their EXTRA charges ( loan fee, admin charges, agreement fee, whatever craps fees or hidden cost there's NO GST).

 

Yes, you are right. GST not only accounts for any thing you buy from the shop, even a simple job like servicing can be taxed/charged by the shop provided they want to.

 

Most shops will not charge GST for a second hand bike (even if they are GST registered) and that's what I'm trying to explain...

 

like what panclanrider said. they the bike shop can charge u gst for service also. so back to square one.

[Shinobi]

yupz though charged just ask for the receipt lor, if there's no GST receipt go complaint CASE if got GST receipt then they oso have to pay GST to government lolx make them LL ^^

[tiMeMac]

Thanks to contrarian for the link to GST information.

 

Actually yesterday i went down to Revenue House to check on whether is it proper

to charge GST on 2nd hand motorbike.

 

This is their officer explanation: (which is the same as the link given by

contrarian but with a clearer perspective from the buyer side like us.)

 

Basically there are two scenarios (schemes) which the dealer can charge

the GST on the used bike.

 

For example: If the machine price is quoted $8k (excluding road tax,insurance,etc).

A. Under Gross Margin Scheme.

 

If the machine price is quoted under this scheme, then in the bill itself,

it cannot show any GST charges. It is illegal to show any amount in the GST column. Because the quoted price has already included the GST amount.

How they calculate it? You may refer to the link given by Contrarian.

 

B. Under Discounted Sale Price Scheme.

 

If the machine price is quoted under this scheme, then the GST is calculated

as such: [machine price/2] x 7% (current GST rate). For this scheme, the GST can be shown in the bill.

 

Conclusion: When buying a used motorcycle, it is not proper for them

to say that they have to include 7%GST charge on top of the machine price.

 

 

 

A few things to note before buying a used bike:

 

1. Downpayment : No need to put in full before collecting the bike.

2. Take note of how they include the GST.

3. There are write-up on the points to take note before buying a used bike.

It is worth the time to read it up.

[flykite]

yea i agree... GST only on machine and insurance... other than that if ur purchasing any other items (check out for GST registered invoice if no GST invoice = no GST) but their EXTRA charges ( loan fee, admin charges, agreement fee, whatever craps fees or hidden cost there's NO GST).

 

the problem is, how are we supposed to convince the motodiam to not charge GST on the agreement fee, admin fee, etc. the mehod of calculation is very simple to the motodiam. just sum up all the rubbish fees + machine price + insurance then multiply by 107% to get the OTR price, which includes GST for the above non-taxable items and paying GST twice for insurance. they'll just insist they're right and the concluding sentence of the conversation or argument will always be "you go anywhere else also the same" and "not happy don't buy from us lah".

 

i've been rebuked by so many motodiam even when i can prove that it is illegal to levy GST on the non-taxable items of the sale, and twice on the insurance that i've personally given up buying bikes from motodiam. doesn't mean that i can't afford the few hundred dollars more of extra GST but i don't see the point to let them gain something that they shouldn't be profiteering from.

[tiMeMac]

Very simple. if they want to charge GST on the machine price (excluding road tax, insurance, etc) ask them to put in down on the sales order (where they itemised the charges).

 

All bike dealer know themselve it is illegal for them to do so , so they won't put it down on the sales order. If they don't write it down and we won't pay for it. If ..and if they do write the GST charge, you may bring to the Revenue House, and they will take action on it. (I was told by the IRAS officer)

[jia_yvon]

simple, u let them charge u GST, then u bring the paper go sue them. i tell u u can sue till their shop close ar..

[jia_yvon]

there is no such thing as GST for used bike/car. new bike yes, but is confirm included inside already.