Received a receipt with $0 GST from Cash Converters-is this right?

Lcc2h on 23/12/2019 - 21:32
Last edited 24/12/2019 - 10:01 by 1 other user

Hi all,

Was hoping I could get some advice regarding a purchase I made from Cash Converters.

I bought a phone, and on the receipt is says GST was $0. After following up in store and over the phone, I was told this is normal due to some situation with the store being a pawnbroker.

I’ve checked online and can’t get any clear guidance on this particular situation, but I can’t find any scenarios in which GST wouldn’t be charged.

It only matters as I was going to claim TRS when leaving the country.

So my two questions are:
Should the receipt state GST?
If it should, who should I contact regarding this?

Financial

Comments

  • mbck on 23/12/2019 - 21:33
    +5

    https://community.ato.gov.au/t5/Business-tax-questions/Pawnb…

    That's weird. There should be gst

    • cc2h on 23/12/2019 - 21:47

      That is weird. Any ideas on whom I should contact about this?

      • mbck on 24/12/2019 - 09:59
        +1

        Report ato i suppose.

        Google making a tip off

  • chumlee on 23/12/2019 - 21:50

    Maybe no GST as 2nd hand goods?

  • whooah1979 on 23/12/2019 - 22:00
    +1

    The good is GST free if the seller purchased the good from another seller that was a non-GST registered individual or private sale.

    • cc2h on 23/12/2019 - 22:05

      For my piece of mind - could you link the relevant source for this? Seems to disagree with mbcks’ link

        • loke on 23/12/2019 - 22:43

          I had a read of that and it is more about claiming GST/input tax credits on 2nd hand purchases which are GST free

          When they onsell it they do charge GST. See the table for the Global method on page 3, in the right columns they have clearly accounted for GST on the sale.

  • Any thing on 23/12/2019 - 22:33

    What was the price of the phone?

  • eug on 23/12/2019 - 22:40

    I've had a few invoices from Cash Converters with no GST. I contacted them on FB, they said it should be there and they'd get it sorted. My subsequent purchases from the same branch all included GST.

    • bargain huntress on 23/12/2019 - 23:17
      +1

      so they are avoiding tax until each branch gets caught?
      i don't think that's going to go well for them…

      • ribbonsofnight on 24/12/2019 - 22:23
        +2

        Less fallout than not paying their workers I guess

  • loke on 23/12/2019 - 22:53

    Post a copy of the invoice redacting all personal information?

    Did you look up their ABN on the ABN lookup to see whether they are GST registered (hence ought to be charging GST)?

    Edit:

    https://www.abr.business.gov.au/ABN/View/43127343293

    Looking at the registered business names, they likely operate as branches under the same GST registered ABN

    • cc2h on 24/12/2019 - 08:49

      Ok, this is interesting - they’re not registered for GST.

      https://www.abr.business.gov.au/ABN/View?id=81081757922

      • mbck on 24/12/2019 - 09:58

        Im pretty sure cash converter (well that particular shop), would have a turnover of more than 75k….

      • loke on 24/12/2019 - 10:04

        Seems like they are charging you under the Credit Services / Collateral Loan arm of the business, instead of the regular Cash Convertors side of things (only an assumption, don't know how they run the business).

        Google shows they are a credit representative https://search-afsl.com/Snnb%20Enterprises%20Pty%20Ltd/credi…

        Only when their GST Turnover is over $75k are they required to be registered for GST, if they are providing financial services the majority of their income is likely interest income (and other fees) and this does not form part of their GST turnover:

        Supplies that are excluded in the calculation of current GST turnover are:

        supplies that are input taxed
        supplies that are for no consideration
        supplies that are not made in the course of your enterprise, or
        supplies that are not connected with Australia.

        via: https://www.ato.gov.au/Business/GST/In-detail/GST-issues-reg…

        • cc2h on 24/12/2019 - 15:56

          Yep, just discovered they have two ABNs

  • BargainBenno on 28/12/2019 - 09:22
    -2

    I would say Cash Converters bought the phone from a private seller.

    The private seller may have previously claimed back the GST through TRS and then later sold the phone to Cash Converters. At this point the phone has no GST credit attached.

    Cash converters sold you the phone but there is no GST attached as it is not available in a privately purchased item

    Cash Conveters have done the right thing.

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