GST Rate Change - Issues to consider for your Business
With the GST rate being increased to 15% from 1st October 2010 there are many things for you business to consider within the next few months.
We see the key issues as:
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Pricing
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How will the increase affect your pricing? Will the GST increase be on-charged to your customers? How are you going to let your customers know?
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Systems
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What impact does this increase have on your IT system or computerised cash book? Will your software be able to cope with the increase? It is likely that software providers will only be providing support on their latest versions so you will need to consider the cost of updating.
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Transition
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How will you manage the GST rates during the transition period and how does this effect any contracts you have in place?
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The
IRD Website obviously provides a background for what businesses and consumers need to look at and is a good starting point to raise your own awareness of the changes.
IRD considers the following points:
Calculating GST - How to work out the GST component of a price
Filing your GST Returns - You may need to file two GST returns if your filing period covers September and October
GST Invoices and Receipts - Ensure you are charging the correct rate from 1st October
Time of Supply Rules - Ensure you are paying IRD the correct amount of GST
GST on Imports - What GST rate will you be charged by Customs?
Cancelling your GST Registration - Are you considering cancelling your GST registration anytime soon?
Click on any of these links to be taken to the IRD website.
We have also produced a GST Increase Newsletter.
Click here to download the Newsletter. There is also a Newsletter targeting our Farming clients
here.
There are also some pointers on GST changes on our latest
Budget Update Newsletter.
