Application (Pub: 3 Dec 2007)
For most New Zealand businesses, dealing with GST is relatively straightforward. The key issues are:
• Do I register for GST (businesses with/expecting a turnover exceeding $40,000 in a twelve month period must register for GST)
• For businesses with a turnover less than $40,000 in a twelvemonth period, they need not register but have the option to register. These businesses would only be expected to GST register if they had purchased significant assets for which input tax deductions were sought.
• Most business receipts are subject to GST at the rate of 12.5% (the main exceptions being zero rated goods and services and exempt supplies, including provision of domestic accommodation and certain financial service fees)
• Businesses can claim an input tax deduction for most purchases (main exceptions being zero-rated goods and services and exempt supplies, including remuneration paid to employees, interest, and certain financial services fees)
• Timing of GST payment obligations and input obligations is also critical (see below)
Accordingly, the application of GST to the majority of New Zealand business transactions is straightforward. GST can however give rise to difficult issues, especially in the area of “non standard” transactions. This would include the sale and purchase of real estate, financial services based transactions, GST on fringe benefits provided and GST adjustments for entertainment tax.
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Business Registered on an Invoice Basis (Pub: 3 Dec 2007)
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Businesses Registered On A Payments Basis (Pub: 3 Dec 2007)
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Debt Collection Services (Pub: 3 Dec 2007)
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GST Adjustments for Change in Use of an Asset (Pub: 3 Dec 2007)
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GST Method (Pub: 3 Dec 2007)
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GST Periods (Pub: 3 Dec 2007)
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GST Registration (Pub: 3 Dec 2007)
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GST Returns (Pub: 3 Dec 2007)
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Managed Units – GST? (Pub: 3 Mar 2008)
The following has been adapted from a question received from one of our readers. When we looked into this we considered it worthy of highlighting in this issue for the benefit of all our readers as it is based on a discussion paper just released by IRD.
Question:
I have a client who owns a villa which has been operating as part of a Golf Course hotel complex until now. The villa is owned on a composite unit title. Until now the client has returned GST on income and claimed GST on the purchase of the property and expenses on the basis that it was a commercial dwelling, via the hotel/motel definition. My client has not renewed the hotel management lease and now intends to manage the villa themselves; the first tenancy being considered is for a six month term. I am aware of the 60% of value for GST purposes for longer than 4 weeks tenancies if we deem it still to be a commercial dwelling, however I am concerned as to whether it still falls under the commercial dwelling definition, being only a single villa and now not administered as part of the hotel by the management company.
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Payment Dates (Pub: 3 Dec 2007)
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Practical Hints (Pub: 3 Dec 2007)
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Second-hand Goods Input Tax Credit (Pub: 3 Dec 2007)
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Taxable Activity (Pub: 3 Dec 2007)
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Time of Supply (Pub: 3 Dec 2007)
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Valid Tax Invoice (Pub: 3 Dec 2007)
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