Registered for GST? 1 October Checklist

The GST rate is increasing from 12.5% to 15% for goods and services supplied on or after 1 October 2010.

Use this checklist to make sure you’re ready for this change:

  • You have updated your accounting software
  • Your bookkeeping and accounting staff are trained in how to apply the GST changes and know what to do
  • You’ve updated your prices and advertising
  • You have a plan to let your customers know how the GST increase will affect how much they pay for your goods and services after 1 October
  • You have incorporated the 15% GST rate in tenders or contracts after 1 October
  • You’ve tested your newly updated accounting software
  • You’re ready to issue invoices with the new GST rate of 15% from 1 October
  • Your accounts payable system can process invoices at both the 12.5% and 15% GST rates (you may receive invoices at both the old and new rate of GST for some time after 1 October)
  • You can issue credit and debit notes at both the new and old rates (the GST rate on credit and debit notes needs to reflect the original invoice)
  • You’re aware of the time of supply rules about the GST change and know how to make adjustments in your GST return.

Filing your GST return:

If you file GST returns monthly, two-monthly or six monthly and the period ends on 30 September 2010, you’re in luck because you just need to file the return as normal, accounting for GST at 12.5%.

If, like 80,000 other New Zealand businesses, you file GST returns every two or six months and the period spans 1 October, IRD will send you a transitional return and you will need to make a GST rate change adjustment for qualifying supplies.

Sound complicated?

Help is at hand - click here to enquire about Smart bookkeeping & GST return services.

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This entry was posted on Tuesday, September 7th, 2010 and is filed under Accounts.

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