Travel from Auckland to Sydney (return flight around $400). When in Sydney spend $8,000 on goods and services which are subject to GST. You really need to consume all of them in Sydney for this to work.
You’ve saved $400!! Yes I couldn’t believe it either. That’s the difference between the GST cost in Australia (10%) and the new rate in NZ after 1 October 2010 (15%). A 5% return on your money. So your airfare is free.
How’s that for a fantastic money making venture? Spend 8k and get a free trip to Sydney.
Barrister, Director and Consultant specialising in tax, family enterprise governance and succession, helping start ups and entrepreneurial enterprises grow safely and international expert on value added tax policy and implementation.