GST for non-profit - legalities?

Scenario - non-profit group (all legal and above-board) having AGM. Selling advertising space in conference book. Does the cost include GST, and how should receipts be written, to keep it all legal and above-board?

Is the group GST registered?

Ruth asks the salient point:
The type of organisation doesn't matter, but GST registration does.
You only add GST if you are GST registered, and if you are, then you must add GST.

No, the group is NOT GST registered. That's what I thought. They put it on their forms last year, and this year I'm conference registrar, and I didn't think it was kosher to put that on the form.

If you're not GST registered you can't issue a GST receipt, so you just issue ordinary ones. You might want to check whether or not you need to include "GST included" or something on any receipt though.

Thanks, Ruth - how would I find out? Ringing IRD?

If they answer quickly ... I'm just trying a few search possibilities, see if I can find what you need ...

if you pay GST, you generally charge it on, if you're not paying GST, you either don't charge it in the price, or pocket the difference,

but, if you charge GST and don't pay it (to teh govt), you're going to get a strongly worded letter from the tax man.

if you're a non-profit group, the advertising companies are probably writing it off as a charitable donation anyway, so they're not paying tax on it and it's going in the "expenses column" to lower the tax across the rest of their business

Most receipt forms have a space for GST, but you're not issuing a GST receipt, so your amount received and the GST-inclusive total will be the same. If there's no GST mention on a receipt form, you probably don't need to worry about it.

If you collect GST, the IRD will be very interested!

See if you can reassure yourself with anything here: http://www.ird.govt.nz/non-profit/np-gst/

Thanks for that link, Ruth... just want to be legal, and have also rung the IRD and left a message for a callback.

Looking at the link, seems fees for the registrations are liable for income tax, as are donations for sponsorships, AND advertising fees, so will have to keep very careful records!

Andrea;453587 wrote: Thanks for that link, Ruth... just want to be legal, and have also rung the IRD and left a message for a callback.

Looking at the link, seems fees for the registrations are liable for income tax, as are donations for sponsorships, AND advertising fees, so will have to keep very careful records!

Only need to register if your income is over $60000 not including the GST content, interest and a few other things..

If you are GST registered, you wil have to charge (and account for) GST on everything you invoice for - including membership subs. If members are not commercial/GST registered, they cannot claim this back.

We had this issue with our incorporated institute, wasn't a biggie for members as our subs are so small...and advantageous as we run a conference every year with a large income/expenditure, so being able to claim GST back was useful for our finances.

You'd have to weigh up the benefits/costs depending on what your not-for-profit buys/gets income from.

If you chose not to register for GST as it's not worthwhile for you to do so...just invoice and make it clear on the invoice that your org is NOT gst registered.

Just got off the phone with the IRD - we'd have to be taking in over $60K/annum to be liable for income, and the organisation is not GST reg, and not really worth it for what it is (breed society/registering body). But we aren't allowed to collect GST, so the wording on the form I was mentioning has to be changed.