Check those invoices!   2 comments

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 will be okay but as a general rule they will be wrong. This is important if the purchaser is a business because they should be able to claim GST at the 15% rate on the expense but must have a valid tax invoice to do that.

Also, some businesses are having trouble with automated systems and credit notes for pre 1 October sales are being issued at 15% when they should be 12.5% .

During this transitional period it will pay to check invoices and credit notes carefully.

Iain

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Posted October 22, 2010 by Iain Blakeley in Rate increase to 15%

2 responses to “Check those invoices!

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  1. What about invoices overlapping Sep-Oct where the entire invoice is done at 15%? Good example is Vodafone. Calls made in Sep are charged at 15%. Those buggers will squeeze any extra penny they can out of you!

    • Yeah that’s been an issue for a few people in the last couple of weeks. The utility companies were targetted recently by the Revenue Minister for the same thing. But unfortunately, if the invoice is issued by them in October there’s nothing they can do about it. They have to charge 15% GST because that’s what the law says, even if the calls were made in September. It’s based on the date the invoice is issued. There was a one off concession they could have used up until 11 October which allowed them to invoice September transactions at 12.5% but not all companies were eligible for that. It had to be consistent with their normal billing cycles. Anyway, it’s not as if Vodafone is pocketing the money. All the GST they charge has to be paid over to the Government so there’s nothing in it for them.

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