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 ring the tills at the new prices as 1 October ticks over. New labels have to be put on stock, price lists have to be changed, shelving labels updated, computer systems and bar coding updated. Then they have to be able to deal with situations when people buy stuff on 30 September at 12.5% and return it 2 days later (say because it’s faulty) and get a replacement when GST is 15%.
Sounds like a good time to be a tax consultant or IT specialist.
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.