Is Your Fencer Charging GST Without Being Registered?

In this post:

• Why some quotes add GST that shouldn't be there
• How to check any business's GST registration in about a minute
• What to do if the numbers don't match

Here's one most people never think to check.

You get a quote. At the bottom it says "plus GST", or there's a GST line adding 10%. On a $6,000 fence, that's $600. You assume it's normal and move on.

But not every business that charges GST is actually registered for it. And if they're not registered, they shouldn't be charging it at all.

How it happens

A business can have an ABN without being registered for GST. They're two separate things.

Smaller operators often have an ABN but aren't registered for GST. That's perfectly legal. What isn't okay is adding GST to your invoice anyway. That extra 10% doesn't go to the tax office. It goes in their pocket.

Sometimes it's a genuine mistake. Sometimes it isn't. Either way, it's your money.

How to check in about a minute

1. Find the ABN on the quote or invoice. A proper quote should show it.
2. Go to ABN Lookup, the free government site at abr.business.gov.au.
3. Type in the ABN.
4. Check two things: the business name matches who you're dealing with, and the "Goods and Services Tax" line shows they're registered.

If it says "Not currently registered for GST", they shouldn't be charging you GST.

Other things to watch for

• No ABN on the quote at all. Ask for it. A real business will give it to you straight away.
• The name doesn't match. If the quote is from one business and the ABN belongs to someone else, ask why.
• A "cash price" with no GST. It might sound like a saving, but it usually means no proper invoice, no paper trail and very little comeback if something goes wrong.
• A cancelled ABN. ABN Lookup also shows if an ABN has been cancelled. That's a big red flag.

If something doesn't add up

Ask the business about it before you pay. Politely is fine. There may be a simple explanation, like a recently changed registration.

If they're not registered and the GST is on the quote, ask them to take it off. If you've already paid, ask for a refund of the GST they charged.

If the answers don't make sense, that tells you something about how the rest of the job might go.

Check us too

We're happy for you to check Synergy on ABN Lookup and on the QBCC licence search. Our QBCC licence is 15416911. The people who check are the careful ones, and those are exactly the people we like working with.

Common questions

Can a business with an ABN charge GST?

Only if it's also registered for GST. Having an ABN alone isn't enough.

Where do I check if a business is registered for GST?

On ABN Lookup at abr.business.gov.au. It's free and shows the GST status alongside the ABN.

Is it bad if a fencer isn't registered for GST?

Not necessarily. Smaller businesses don't always have to be. It's only a problem if they charge you GST anyway.

Keep reading

• Deposit scammers: make one phone call before you pay
• Will the price change after I pay the deposit?
• How much does a Colorbond fence cost in Brisbane?

Want a quote you can check line by line? Call us on 07 2141 7748, get a price online or let's have a chat.