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Tax Tip
If you are registered for GST you must account for GST on trade-ins or sales
of all motor vehicles, including those to related parties and employees.
When you trade in a motor vehicle you are transferring ownership which generally
falls within the guidelines for a taxable supply.
Therefore, you should issue a tax invoice to the motor vehicle dealer and include
the value you receive on your BAS and pay the GST to the ATO.
This applies even if the vehicle was purchased prior to the introduction of
the GST on 1 July 2000.
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