Iain Blakeley

Barrister - Tax Expert - Business Adviser - Director, Professional, Practical, Fast, Affordable

Rate increase to 15%

12 GST thoughts of Christmas

12 GST thoughts of Christmas: 1. There's no GST on gifts (so Santa is probably not GST registered). 2. GST registered businesses can claim back the GST on gifts they buy for staff, suppliers and customers. 3. If you buy someone a gift voucher for Christmas it's quite...

Savings up + GST collections down = GST rate up?

Kiwi households are saving more than at any time since 1995 according to the latest national accounts. http://www.beehive.govt.nz/release/household-savings-rate-positive-five-years The flip side is with low inflation and lower consumption the Government's GST take is...

“Australia should follow NZ GST”?

NZ's GST is certainly the most efficient form of VAT in the world. The "VAT Revenue Ratio" is used by the OECD as a measure of VAT efficiency. The average in the OECD is about 50%. The least efficient is Turkey's VAT at about 30%. NZ ranks top at a little more than...

Labour Party drops GST policy on food

Labour has officially abandoned its policy to remove GST from fresh fruit and vegetables. See here: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11190292 Anyone who has heard David Cunliffe speak on tax policy since he was appointed Labour's...

12 GST thoughts of Christmas

12 GST thoughts of Christmas: 1. There's no GST on gifts (so Santa is probably not GST registered). 2. GST registered businesses can claim back the GST on gifts they buy for staff, suppliers and customers. 3. If you buy someone a gift voucher for Christmas it's quite...

GST exemption gaining momentum?

Today's presentation of a petition to Parliament for GST to be removed from food shows debate around this is only going to intensify leading up to the election. It seems there's support coming from Maori and Mana Parties and the Greens. With Labour's stated policy to...

The great New Zealand GST myth?

"Single rate, broad based" is the catch phrase of New Zealand's GST system but is it really true? There are now 9 GST rates applying in New Zealand as determined in the legislation or by IRD decree. They are 0%, 7.5%, 9%, 10.25%, 10.75%, 12.3%, 12.5%, 12.9% and 15%....

NZ GST landscape changes

Following Labour leader Phil Goff's confirmation yesterday his party will remove GST on fresh fruit and vegetables if elected later this year the New Zealand GST landscape has changed significantly. Since 1986 when the Labour Party first gave us GST there has been...

Fiji VAT to 15%

Fiji is raising VAT from 12.5% to 15% from 1 January 2011. This was announced last Friday and gives businesses very little time to get ready for the increase. It will be interesting to see how they go and whether transitional measures similar to those introduced in...

The habits of the average consumer

More details are available on how we spent our money in the September quarter. While the increased spending wasn't close to the predictions of Treasury consumers seem to have had a bit of a splurge on furniture and appliances which helped bring the overall numbers up...

-$600m

In the three months ended 30 September 2010 the Government collected 15.8% less GST than forecast. That's about $600m less than budgeted. The big increase in consumer spending anticipated before the 1 October GST rate rise didn't happen. In 1989 when the rate...

Check those invoices!

I'm seeing quite a few examples of invoices still being issued at the old 12.5% GST rate. In one case the supplier said they used the old rate because the goods were delivered in September. Invoices issued in October at 12.5% are probably incorrect. Sometimes they...

GST aftershocks continue

GST in New Zealand is supposed to be simple and everyone thought all they had to do to implement the new rate on 1 October was flick a switch in their computer system. Recent press coverage suggests the change is more than a simple computer or accounting adjustment....

Commerce Commision pricing complaints

Reported in the NZ Herald today. http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10678218 Complaints about retailers taking advantage of the GST rate rise to increase prices. My first thought was, 30 complaints about GST rate rise activity is...

The new GST era

The 1st of October passed without the sky falling on our heads, seemingly. I haven't heard of any major systems failures on the day as traders switched to the new rate. Some 24hr traders closed up for a few hours either last Thursday/Friday night or over the weekend...

Warning – over charging of GST!

Watch out you're not overcharged GST on invoices received before 1 October. With only 1 week to go until the GST rate increases to 15% it seems some businesses still don't understand when to apply the new rate. In this morning's mail I received a renewal notice and...

GST slot machines and raffles

Good on the IRD for putting a full page spread in this morning's NZ Herald about the GST rate increase on 1 October and the other tax changes which come into effect on that day. The GST impact on finance leases, gym memberships, insurance policies and layby sale...

The quiet before the storm?

I'm not sure whether it's the really bad weather or a general lack of excitement but the imminent GST rise on 1 October so far doesn't seem to have got people rushing to the malls for bargains. Perhaps the wave will come through this weekend, along with daylight...