GST rise and invoicing

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13 years 5 months ago #24567 by reggit
Hi to all those who do their own (and others') accounts. I am usually up with the play with stuff like this but have fallen behind understanding what will happen come 1 October with this damn GST increase.

If I invoice at end of September for work that was done in Sept, to be paid before 20 October, do I put GST on at 12.5 or 15%?

Take a break...while I take care of your home, your block, your pets, your stock! [;)] PM me...

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13 years 5 months ago #346617 by stephclark
Replied by stephclark on topic GST rise and invoicing
Hi Tigger... anything invoiced in sept for work completed prior to 30th sept is at 12.5%..so best to make sure all is invoiced up to date.. there are a few trip ups with the gst increase, depending on your business.. watch for leases and Aps etc.. good place to have aread is www.gstadvisory.govt.nz they have a no nonsense, easy to understand FAQ's page..
good luck

steph

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13 years 5 months ago #346619 by Jack
Replied by Jack on topic GST rise and invoicing
Gidday

Why are people still saying that the GST rise is only 2.5%

The rise is 20%.

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13 years 5 months ago #346621 by spoook
Replied by spoook on topic GST rise and invoicing
The GST rated attracted by a sale is the one in force at the Time Of Supply
You will also have up to about the 11th Oct to get your September invoices out to clients etc. (TOS).

From IRD site.....
What rate of GST do I use?


When there is a GST rate change (in this case from 12.5% to 15%), the GST rate you use depends on when the transaction occurs (the time of supply). The time of supply is when the supplier issues an invoice or receives a payment, whichever happens first.
Note

If the time of supply is before 1 October 2010, the GST rate is 12.5%, even if the goods or services are not actually provided until after that date.

.... now that is interesting :confused: That sort of points to layby being at 12.5% if you start purchasing it prior to 30/9.

One of the companies I work is getting an "upgrade" as we are part of their support group. That will be a breeze :D
The others are all doing it manually, now that will be interesting :p as it is me that will be doing it, better leave ours at home until last, I should be an expert by then [}:)]

There are no bad questions only those that are not asked.
"You are responsible, forever, for what you have tamed"

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13 years 5 months ago #346622 by Organix
Replied by Organix on topic GST rise and invoicing

Jack;335863 wrote: Gidday

Why are people still saying that the GST rise is only 2.5%

The rise is 20%.

And the resultant increase in prices will be 2.2222% :rolleyes:

Harm Less Solutions.co.nz
NZ & AU distributor of Eco Wood Treatment stains and Bambu Dru bamboo fabrics and clothing

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13 years 5 months ago #346625 by stephclark
Replied by stephclark on topic GST rise and invoicing
Hi Spook

the package upgrade you talk about... is it MYOB?.. apparantly there are a few hooks with the wizard to be aware of.. mind you this info came from one of the MYOB support people..so the advice to get a consultant to install the upgrade could be their way of drumming up business... i just hope they have fixed the programe clich in version 19 for calculating the gst at /.9 regardless of what you set the system gst rate at.. sorry burbling now
bye

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13 years 5 months ago #346626 by spoook
Replied by spoook on topic GST rise and invoicing
The GST return covering September should be interesting.

......and as for the divisional calculation to find the GST portion :confused:
used to be divide by 9.
That was so simple to what they are suggesting.......

$Value including GST mutilply by 3 and divide by 23 = GST portion.

Or as I intend to do ... divide by 7.66666666666 recurring

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13 years 5 months ago #346627 by spoook
Replied by spoook on topic GST rise and invoicing
Yes Steph, MYOB. Did you go to their recent seminar on the subject?

There are no bad questions only those that are not asked.
"You are responsible, forever, for what you have tamed"

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13 years 5 months ago #346628 by Organix
Replied by Organix on topic GST rise and invoicing

spoook;335870 wrote: The GST return covering September should be interesting.

......and as for the divisional calculation to find the GST portion :confused:
used to be divide by 9.
That was so simple to what they are suggesting.......

$Value including GST mutilply by 3 and divide by 23 = GST portion.

Or as I intend to do ... divide by 7.66666666666 recurring

It's a lot simpler than that :) Just divide the GST inclusive amount by 1.15 to get the GST exclusive amount (or multiple by 1.15 to do the reverse). The difference between the inclusive and exclusive is the GST (obviously :rolleyes:)

Harm Less Solutions.co.nz
NZ & AU distributor of Eco Wood Treatment stains and Bambu Dru bamboo fabrics and clothing

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13 years 5 months ago #346629 by stephclark
Replied by stephclark on topic GST rise and invoicing
Hi Spook.. no i didnt gte to the seminars.. interesting?
ird are doing transitional gst returns arent they, one for the period to sept end then to the end of normal period..

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13 years 5 months ago #346631 by spoook
Replied by spoook on topic GST rise and invoicing
I have a transitional return copy and it looks the same as a normal return :confused: except divided into two parts.

I thought they were taking the debtors and creditors as at 30/9 and adjusting for the GST at 12.5% and then from 1/10 all entries could be deemed at 15%.
Otherwise how will you show payments for September invoices received in October, or later [;)], that only include 12.5% GST??

Looks like I will have to read the instructions properly............. aha....... found it, option 9A "GST rate change adjustment", another form, that is where your bare your soul, well your ledger anyway. They will be taking from you, or giving to you, the GST portions at 12.5%...... all transactions from 1/10 will be deemed as 15% because you have been "credited" the diff.

Make sense??? :confused:

There are no bad questions only those that are not asked.
"You are responsible, forever, for what you have tamed"

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13 years 5 months ago #346633 by stephclark
Replied by stephclark on topic GST rise and invoicing
yes. thats a tricky one.. according to ird ( the helpful sods ).. we will need to make gst rate change adjustments for goods or services sold or purchased before 30th sept but not paid for by that date.. apparantly we are to wait for more instruction re adjustments..

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13 years 5 months ago #346634 by Organix
Replied by Organix on topic GST rise and invoicing
@Spook, according to our accountant all invoices issued for goods/services supplied prior to 1/9 should have GST charged at 12.5%, (and 15% after). Those invoices with GST charged at 12.5% but paid after 1/9 will still only be liable for 12.5% GST to your customer however and the situation will be addressed at end of year.
I'm not sure if this will then result in 15% GST being payable on the proceeds from invoices on which 12.5% GST has been charged but I'm sure somebody will be along soon who does know :confused:

Harm Less Solutions.co.nz
NZ & AU distributor of Eco Wood Treatment stains and Bambu Dru bamboo fabrics and clothing

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13 years 5 months ago #346641 by PeterNZ
Replied by PeterNZ on topic GST rise and invoicing

Organix;335879 wrote: @Spook, according to our accountant all invoices issued for goods/services supplied prior to 1/9 should have GST charged at 12.5%, (and 15% after). Those invoices with GST charged at 12.5% but paid after 1/9 will still only be liable for 12.5% GST to your customer however and the situation will be addressed at end of year.
I'm not sure if this will then result in 15% GST being payable on the proceeds from invoices on which 12.5% GST has been charged but I'm sure somebody will be along soon who does know :confused:

I am sure you mean 1/10, right? [;)]

Cheers

Peter


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13 years 5 months ago #346642 by spoook
Replied by spoook on topic GST rise and invoicing
@ Organix, it will be dealt with in the September and October returns. By November return, it will all be done and dusted.

Yes, Sales pre 1/9 =12.5% , 1/10 onwards = 15% but....... recording your monies received for those invoices in your GST return is where it gets tricky. That is why there is a special page, "Rate Change Adjustment" for the September return.
This below may help you and your accountant.......... taken from here

If you make a sale on or before 30 September 2010 when you use the payments accounting basis

You'll charge your customer 12.5% GST.
If you receive the payment on or after 1 October you'll account for it in a later GST return at 15%. This means you'll pay 2.5% more GST than you receive.
We'll give you a 2.5% credit on your GST rate change adjustment that you'll complete as part of your GST return that includes 30 September 2010.

There are no bad questions only those that are not asked.
"You are responsible, forever, for what you have tamed"

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