Cash or Card Payment to Tradie

Ash-Say on 15/01/2016 - 22:07
Last edited 15/01/2016 - 22:07

I am installing new remote controlled garage door which will cost over $1000. The tradie has agreed to provide Tax Invoice however he is saying that I need to pay 10% extra if I choose to pay via credit card due to GST. He prefers cash payment.

I was preferring credit card so if something goes wrong down the path, I could do charge back however no such thing would be available with cash payment.

Being Ozbargainer, you want to save every cent. Should I pay cash or bear extra $100 and opt for credit card?

Home & Garden

Comments

  • boonanza on 15/01/2016 - 22:17
    +2

    That's bulls-hit what he is saying is illegal & not only would I not deal with him but also report him to the ATO

  • outlander on 15/01/2016 - 22:23
    +2

    So, it sounds like he's giving you a 11% discount in order to make it easier for him to tax dodge?
    Reprehensible. Not so much morally, but if I'm going to commit a crime, I at least want my fair share of the bounty.

    Its not just gst at stake, theres also the business tax rate of what, 30%? Ofcourse that would only be on the markup/labor portion of the bill, but its still a sizable sum.
    Me, I'd be angling for a bigger piece of that pie, if paying by cash. In the order of 20, 25% off
    In the end though, as long as he provides a tax invoice, it doesn't affect you if he reports it or not.

    • StewBalls on 16/01/2016 - 09:53
      +2

      Me, I'd be angling for a bigger piece of that pie, if paying by cash. In the order of 20, 25% off

      This! I expect an absolute minimum of 20% discount for a cashie! ;)

    • whooah1979 on 16/01/2016 - 09:53
      -1

      So, it sounds like he's giving you a 11% discount in order to make it easier for him to tax dodge?

      not charging gst has nothing to do with tax evasion. it doesn't come out of his pocket anyway.

      • outlander on 16/01/2016 - 13:39

        No, of course not. But he is trying to avoid paying the Goods and Service Tax, which is kind of similar. And thats straight from the mouth of this pumpkin man, so you can take that to the bank.

  • oscargamer on 15/01/2016 - 22:53
    +2

    what sort of tax invoice will he provide if you pay cash?

    read this
    https://www.ato.gov.au/Business/GST/Issuing-tax-invoices/

    • cloudy on 16/01/2016 - 09:01
      +1

      Trades tend to think scribbling a few words on a piece of paper is a tax invoice.

  • cloudy on 16/01/2016 - 09:04
    +1

    The truth is, you can't quote prices excluding GST, so if he has quoted 1000, it should be GST inclusive, if he backs out, report him to the ATO and find someone else for the work.

    I also, would to pay cash for his work, dodgey people tend not just be shifty to authorities, they tend to be shifty in general, so paying by cash is extra risky.

    • whooah1979 on 16/01/2016 - 09:43

      The truth is, you can't quote prices excluding GST, so if he has quoted 1000, it should be GST inclusive,

      he can only issue tax invoices if he is registered for gst. so a quotation without gst is fine provided he isn't charging gst.

      • cloudy on 16/01/2016 - 11:11

        Umm, since when was it his choice to determine the revenue of the commonwealth? He can't just decide not to charge GST. His service falls under the Goods and Services tax act. He has no choice, if he doesnt wanna charge GST, choose an occupation that doesn't require it.

        • whooah1979 on 16/01/2016 - 11:30

          you're right that if he is registered for gst then he doesn't have a choice and must charge gst. but if he isn't then he can issue invoices without inc tax.

  • Ash-Say on 16/01/2016 - 09:11
    +3

    I have decided not proceed with this person. He ia refusing to take card without charging 10% extra though he agreed to accept Efptos during initial conversation and never mentioned about GST being charged separately.

    He appears dodgy so don't want to take chance even with credit card now.

    • oscargamer on 16/01/2016 - 09:27

      wise choice

      • NamandSpam on 16/01/2016 - 10:41
        +1

        Wise choice indeed

  • Baysew on 16/01/2016 - 10:45

    I was preferring credit card so if something goes wrong down the path, I could do charge back however no such thing would be available with cash payment.

    So from the Tradies point of view, wouldn't it be prudent for him to charge extra on credit cards, in case there was a charge back ?

    • Ash-Say on 16/01/2016 - 14:11

      $150 for using credit card?

      He was clearly trying to avoid tax and GST payment.

Login or Join to leave a comment
Login Join