As the May 1st Luxury Car Tax (LCT) deadline moves closer automotive dealers across Australia are in the midst of a receiving the software updates needed. The following communication details Pentana Solutions’ understanding of the most recent Australian Taxation Office (ATO) communication.
Tax Invoice Printing Requirements
The ATO have announced that the dealers will be able to continue using their existing invoice templates as a short-term measure; therefore, dealers will not be required to disclose 3rd Party Considerations, related factory incentives or the total consideration amount. Furthermore, the ATO may consider this to be a permanent solution; however further information will be provided in relation to this requirement in the coming months.
GST Payments on Factory Incentives
The ATO have also advised that automotive dealers can continue with the same process of remitting GST on receipt of the RCTI (Reciprocal Tax Invoice) from the manufacturer or distributor. Once again, this is a short-term solution & Pentana Solutions will advise further upon receiving additional advice from the ATO.
The ATO have remained firm with the new LCT calculation – dealers must collect and remit the correct amount of LCT for any other 3rd Party Consideration incentives, effective from the 1st of May.
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* Whilst Pentana Solutions seeks to provide your business with the tools to support Luxury Car Tax requirements the company cannot offer advice on taxation and recommends that all dealers seek advice on the impact of these changes from a qualified source.