Iain Blakeley

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

Rate increase to 15%

Canterbury earthquake and GST

What a devastating weekend for Canterbury! The way the whole community and civil defence have responded is amazing and hopefully it's not too long before Cantabs are back to full strength. This horrible event is going to test the usefulness of some of the GST rate...

GST rate increase starts to bite

We're really starting to see the impact of the GST rate increase starting to bite. Rates notices have been issued by local authorities, insurance companies have renewed policies and many other arrangements spanning the 1 October rate change date are appearing every...

Customs increase GST/Duty limit for imported goods

Following on from earlier posts about the exempt threshold under which duty and GST does not have to be paid on imported goods (known as the "de minimis" amount) there has been an important development. From 1 October, when the GST rate increases to 15%, a new...

Buying goods from overseas

This appeared in the Sideswipe section of today's New Zealand Herald paper: "Buying overseas a taxing process Louise just got pinged $170 after ordering $460 of clothes from Australia. "After talking to UPS, it seems that imports that are worth over $380 incur GST,...

Price points

After 1 October: - a $4 coffee will be $4.09 - a $2 loaf of sliced bread will be $2.05 - a $3.99 jar of vegemite will be $4.08 - a $4.99 packet of wheet bix will be $5.10 - pre-cooked sausages at $7.95 / kg go to $8.13 / kg - beef mince at $12.99 /kg goes to $13.28/kg...

What a difference a day makes!

There are numerous rules specifically dealing with the GST treatment of gambling in New Zealand. Whether it's a raffle, lottery (including Lotto), TAB betting, casino, pokie machine or some other game of chance there will be rules about when GST has to be accounted...

Pay early and beat the GST rise

The Auckland City Council is encouraging ratepayers to pay their 2010/2011 rates before 1 October rather than in instalments spread over the whole year. This is because instalments paid after 1 October will be subject to GST at the new 15% rate whereas if they pay...

Will you be open at midnight on 30 September 2010?

Technically at midnight on 30 September 2010 all sales by GST registered businesses have to be accounted for at the new 15% GST rate. But what do you do in practice? Is it simply a matter of flicking a switch and hey presto! all prices are updated? I doubt it. Pubs,...

What can we learn from the UK?

At one minute past midnight on 31 December 2009 VAT in the United Kingdom went up from a standard rate of 15% to 17.5%.  The UK VAT legislation is more complicated than New Zealand's. For a start, they have a lot of reduced rates (for example for some foods) and also...

That was then, this is now.

In the last couple of weeks I've learnt how much more complicated things are for businesses in 2010 than they were in 1989. When we last had a GST rate increase in 1989 businesses were given about 3 months to get ready to change from a 10% rate to a 12.5% rate. They...

Internet purchasing and GST

If you are in NZ and order stuff via the internet from an overseas supplier there could be GST costs. My experience is that in most cases the actual sale price from the overseas supplier will not be subject to NZ GST. However, when the product arrives in NZ you might...

Australian shopping tips

Here's a way to save GST and have a good time. 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...

GST Rate increase confirmed

The wait is over. New Zealand's GST rate will increase on 1 October 2010 from 12.5% to 15%. Businesses which divide their sales by 9 to calculate their GST liability will now have to multiply by 3/23. At midnight on 30 September businesses will need to be ready to...

Have you got unused vouchers?

If you have book, music or other vouchers lying around consider using them before the GST rate increase. If they are dollar value vouchers you are likely to get less for them after the new GST rate comes in because prices overall are likely to rise. Iain

New Zealand GST Rate Increase

Welcome to the first blog dedicated solely to New Zealand's Goods and Services Tax (or "GST"). Yeah I know, it's not as exciting as political scandal or the lives of the rich and famous but there are already plenty of places to go to whet your appetite if you're in to...

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iain@iainblakeley.nz