GST Rules for Plumbers: Residential vs Commercial
Do you need to charge GST on every job? Generally, yes, if your turnover exceeds $75,000. But the paperwork differs depending on who you are billing.
Residential (Homeowners)
When billing a homeowner (e.g., fixing a blocked toilet), your quote and invoice must show the GST-inclusive price.
Bad: "$200 + GST"
Good: "$220 (includes GST)"
Commercial (Builders/Real Estate)
When billing a business, they need a valid Tax Invoice to claim the GST credit back. Your invoice must explicitly state "Tax Invoice" and show the GST amount separately.
New Housing: If you are working on new residential developments, be aware of the "GST at Settlement" withholding rules if you are the developer, though this usually affects the builder, not the subbie plumber.
Is your Xero setup correctly?
We ensure your invoice templates comply with ATO standards for both residential and commercial clients.
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