Hire purchase

Key requirements

The financier accounts for GST on the full goods value at the earlier of invoicing or receiving the first instalment, even if legal title remains until final payment. Separately charged and disclosed interest is exempt instalment-credit finance; without that separation, the full payable amount is taxable. Assignment of the credit facility to another financier is exempt, while the associated title transfer is not a supply. Repossession itself is not taxed. A subsequent sale is treated as the hirer’s supply: if the hirer is registered, the financier must account for GST regardless of its own registration and provide the required statement and payment within 21 days of sale. The hirer must not duplicate that sale in its return. Keep financing and enforcement documents distinct.