The change to 15% GST for all New Zealand business is approaching rapidly. Are you ready?
Anyone who has desktop software will be seeing one of the major drawbacks right now – it’s very hard to upgrade. Fortunately users of web based systems like Unleashed Inventory Software and Xero are always kept up to date with the latest changes. Not one single user is left behind.
We’ve updated the software for you, so that you don’t have to worry.
There are two main changes that will allow you to switch to the new GST rate seamlessly:
- On midnight 30th September we will automatically update the default rate from 12.5% to 15%. You do not need to do anything. All new invoices and purchases will have a default rate of 15% from this time onwards.
- We’ve added a new tax override selection to both the purchase order and the sales invoice screens. You can see this already in the purchase and invoice screens. By default it has 12.5% selected right now, and 15% selected from the 1st of October. You use this override to choose the correct GST rate based on the date of the invoice.
In general these rules must be followed:
- An invoice created and supplied before 1st of October must be at 12.5%
- An invoice created and supplied after 1st of October must be at 15%
But there are also a range of transitional provisions that may apply to you.
You can learn about these on the IRD’s page describing the GST changes: http://www.ird.govt.nz/gst/
You can find out how to handle the 15% GST change in Xero from their blog: http://blog.xero.com/2010/08/video-see-the-upcoming-changes-to-gst/
If you are not in New Zealand, then you have nothing to worry about – this time.
But when your country’s GST or VAT rate does change, don’t worry we’ve got you covered.