GST returns are usually filed 2 or 6 monthly and return and payment due on the 28th of the following month.

Gulf Accounting recommends that they prepare GST returns on your behalf, the benefits of this are:

  • At the end of the year most of the work has been done so no large bill looming.
  • Accounts are prepared correctly at the time which ensures no adjustments to pay at the years end
  • Saves doubling up of work. An accountant has to re-input your work anyway so it doesn't save you time or money in the end.
  • Profits can be monitored and end of year tax estimations provided so you don't get a nasty shock when it’s time to pay tax.
  • If you need to borrow money, the lending institution usually want a set of Financials Statements. These can be emailed within a few minutes saving you time and the expenses of having to do mid-year accounts and hopefully obtaining the loan sooner.
  • If your turnover / total sales exceeds or is likely to exceed $60,000 in a consecutive 12 month period you must register for GST.
  • It is an offence to charge GST but are not registered.
  • GST is usually calculated using the invoice or payments basis. Invoices issued and received are used to calculate GST on an Invoice basis and actual payments made or received for the Payments basis. The payments basis is the easiest to use for small businesses.
  • GST returns are usually filed 2 or 6 monthly and return and payment due on the 28th of the following month.

 

GST Tips

  • You must keep tax invoices for any expense over $50. As long as you can show payment has been made any business expense under $50 does not require you hold a valid tax invoice and can be claimed. So if buying petrol, materials etc your bank statement will suffice as payment proof and you don’t have to worry about finding those invoices that are easily lost, fade or cannot be read.
  • If assets are bought on Hire Purchase or credit card, GST can be claimed on the cash price of that asset immediately. It is incorrect to claim each loan payment as a component will be interest which does not attract GST.
  • Vehicle lease often include an interest component. Look carefully at the information provided by the Finance Company as they will usually advise the GST amount applicable to each payment.
  • GST is not chargeable or claimable on financial services, bank fees, interest or rent of residential houses.
  • GST should be charged at 0% on products or services that are exported. Products exported cannot be given to a person or sent to anyone in New Zealand who says that they intend to take product overseas. Product must be sent directly overseas so forwarding from Post Office, Freight Forwarder or pick up at Customs at the airport is the usual method.