GST Increase – are you prepared?
By now you will be well aware of the GST rate increasing to 15% from 1 October. With this date fast approaching you need to ensure that you are prepared for the increase and have considered all the areas of your business that will be affected, and what you need to do to be ready by 1 October.
This is the first GST rate increase for over 20 years, so for many businesses it will be the first time that they have had to implement a rate change to existing operations. With so much information released it is often difficult to know what is important and relevant.
The Government is aware that many businesses are struggling to cope with the GST rate increase. On 21 May the Government announced that it had established a GST advisory panel to help ease the transition for businesses implementing the GST rate increase announced in Budget 2010.
One month later on the 21st of June, the GST advisory panel launched a new website (http://www.gstadvisory.govt.nz/), and 0800 number, to help businesses prepare for the GST rate increase from 12.5% to 15% on 1 October
On 10 August, the Minister of Revenue, Hon Peter Dunne, released a technical paper providing details of amendments to the Goods and Services Tax Act 1985 (“GST Act”) to assist businesses to transition to the new GST rate. According to Mr Dunne, “The proposed changes will ensure that the legislation better takes into account business practice, removes excessive compliance costs in particular cases or removes an unfair outcome for the business or customers concerned.”
To simplify the process of preparing for the GST increase we've produced a range of practical materials to guide you.
Click on the below links for more information:
Reviewing your accounting system
- We’ve done it for you. We’ve reviewed the systems available and prepared guides our each system’s requirements.