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kingjj

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#171744 29-Apr-2015 18:04
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Kia Ora,

We are in the middle of getting renovations done at home. Included in this has been removing and re-gibbing all the walls in our kitchen/dining and the ceiling. The work has been completed and we've had a shock with a higher invoice than was expected from the quote. My question to GZ is thus:

If you were presented with a quote (via text) that listed what would be done and supplied with the line "Tax Invoice $XXXX" and nothing further listed for price, what would you take this to mean?

We have been sent an invoice for a slightly higher amount (some extra work required) which also includes GST as an extra which we had thought was included in the initial quote. Have we read the term "Tax Invoice" incorrectly? Keeping in mind this quote was not generated through any software or on a standardised form but sent via text.

Reading through Consumer Affairs page on Quotes, a quote should show whether it includes GST or not. As the quote was close to other quotes received that included GST we did not query it further at the time.

I am yet to speak with the plasterer while we decided on how to approach it.

Any thoughts appreciated.

JJ

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Brumfondl
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  #1293799 29-Apr-2015 18:09
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Based on http://www.ird.govt.nz/gst/work-out/work-out-records/records-tax/tax-info/ what you were given was not a tax invoice at all.

And you should have asked about the GST, sorry :(







nathan
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  #1293802 29-Apr-2015 18:15
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if it doesn't say on the quote, for a B2C transaction like that, any normal person would assume it incl. GST

networkn
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  #1293811 29-Apr-2015 18:36
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nathan: if it doesn't say on the quote, for a B2C transaction like that, any normal person would assume it incl. GST


Disagree about this. I'd assume exclusive and I'd clarify accordingly. I'd expect a toaster to be GST inclusive but service work by a contractor to be exclusive.



johnr
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  #1293812 29-Apr-2015 18:39
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As a consumer I would expect GST to be on the quote unless it states + GST

CYaBro
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  #1293818 29-Apr-2015 18:52
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Taken from the Citizens Advice Bureau website:

"Unless the quote specifically states that GST is excluded, then the client can assume that GST is included. A quote is a contract between you and your client, so the client is entitled to insist on paying the amount originally quoted."

Aimed at the business rather than the client but still means the same thing either way.




Opinions are my own and not the views of my employer.


Stu

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  #1293820 29-Apr-2015 19:01
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As above, the advice from the CAB is as I've always understood it.




People often mistake me for an adult because of my age.

 

 

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kingjj

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  #1293823 29-Apr-2015 19:14
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Thanks for your thoughts and links. Previous quotes I've had from tradies have always had GST built into the price (most have usually specified it is included under the cost breakdown but not all) so I have to admit it didn't cross my mind to ask.

Upon discussion with SWMBO we've decided to pay the invoiced quote and take it as a lesson. The final cost still comes in just under the next closest quote so it's not 'unreasonable'.


 
 
 

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trig42
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  #1293828 29-Apr-2015 19:42
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He'll probably waive the GST if you pay him cash.

Stu

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  #1293830 29-Apr-2015 19:54
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Fine if you want to shoulder the risk, but there'll be no receipt and no come-back if anything goes wrong.




People often mistake me for an adult because of my age.

 

 

Keep calm, and carry on posting.

 

 

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kingjj

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  #1294656 30-Apr-2015 23:03
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A quick update for any that are interested. I spoke with the Plasterer today via text (his preferred method of communication) and he agreed to waive the GST portion of the bill as a sign of good faith ("to avoid any ill feelings"). I advised him initally we'd pay the full amount but asked him to improve his quotes to avoid confusion which is when he stepped up to the plate.

Credit where it's due I guess.

Now to pay the plumber, electrican, movers, installers and kitchen people............

timmmay
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  #1294715 1-May-2015 07:58
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I guess another lesson learned is to get estimates or quotes in a more formal way, and if someone will only send you a text then they're probably not a professional - or alternately they're in heavy demand and don't care if they do your job or not.

Dairyxox
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  #1294978 1-May-2015 12:24
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Most tradesmen seem to like to quote excluding GST.
Not that I agree with this, if its being sold to a consumer (Not a business) then you'd expect anyone to quote the inclusive price, or be clear that the price is excluding GST.

For tradesmen its probably about wanting to be paid cash, as has been mentioned.

Zeon
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  #1294999 1-May-2015 13:10
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This cash thing pisses me off. I pay tax - he should too.




Speedtest 2019-10-14


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  #1295010 1-May-2015 13:26
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Brumfondl: Based on http://www.ird.govt.nz/gst/work-out/work-out-records/records-tax/tax-info/ what you were given was not a tax invoice at all.

And you should have asked about the GST, sorry :(


The TXT is a quote not an invoice so the IRD requirements are largely irrelevant anyway. But the use of the term "tax invoice" would usually indicate that the price is intended to be tax inclusive even if the tradesman did not intend it.

mattwnz
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  #1295062 1-May-2015 14:26
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trig42: He'll probably waive the GST if you pay him cash.


Do people still do that? Pretty high risk if you get reported.

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