GST News - 2004

Issue March 2004

• New look GST return
• Online filing
• Can I change my filing frequency?
• Home office expenses
• GST and secondhand goods
• Ceasing your GST registration got simpler
• INFOexpress enhancement
• Payments at Westpac
• Freepost envelopes

Welcome to GST News

We send you this newsletter twice a year, in September and March, to tell you about Inland Revenue services, tax law changes and topical issues relating to GST.

Please pass this newsletter on to the person who deals with GST in your business.

New look GST return

We have changed the design of the GST return (GST101) in preparation of new imaging technology being introduced. All returns issued from March onwards will have the new look.

This change does not affect the information you provide or the way you complete your return.

What's changed?

The preprinted details on your copy have been moved and are now printed vertically on the right-hand side of the second page. Your preprinted address details will only appear on the top copy. Remember to complete Box 3 of the return if your address details need to be updated.

If you need to provide additional information, please don't write on the return, use a separate sheet of paper and attach it to your return.

Here is an example of the new-look GST return:

Online filing

Electronic filing of GST returns has received an enthusiastic response. If you have not used the service before, we encourage you to try it out for the following benefits:

• any refund will usually be paid faster (subject to normal checks)
• the eGST return arrives at Inland Revenue the same day that you send it
• you get immediate confirmation that Inland Revenue has received the return.

How to file using eGST

Go to our website at www.ird.govt.nz and follow the link "File a tax return" under "Online Services". Keep the paper return we sent you handy because you'll need to key in the unique 14-digit number printed at the top of the return.

When filing electronically, remember to print the confirmation page of the return, sign it and keep it as a record in your file.

Can I change my filing frequency?

GST returns can be filed on a one, two or six monthly basis. Taxable periods end on the last day of the month.

The one-month taxable period is available to everyone. This would benefit you if you receive GST refunds regularly, eg for businesses in the initial stages, when you are incurring more expenditure than income, or if your business does a lot of exporting. This allows you to claim your GST refunds on a monthly basis rather than having to wait for two or six months.

The two-month taxable period is automatically given to people at the time of registering for GST if you have not requested any other taxable period. However, if your taxable supplies exceed or are expected to exceed $24 million in any 12 months, you must use the monthly basis.

The six-month taxable period is available if the total value of your taxable supplies:

• has not exceeded $250,000 in the last 12 months, or
• is unlikely to exceed $250,000 in the next 12 months.

You must apply in writing to change your taxable period. If you meet the requirements, we will change your taxable period and send you written confirmation, advising you of the date your new taxable period will apply from.

For more information, please refer to our GST guide (IR375). If you do not have a copy, you can read it on our website or order one by phoning INFOexpress on 0800 257 773. Have your IRD number handy when you call us.

Home office expenses

If you use a part of your home for work purposes, you may be able to claim GST on part of the costs of running your home. Expenses you may be able to claim include telephone rental, electricity, insurance and rates.

For further details of how and when to claim and other conditions, please read our GST guide (IR375).

GST and secondhand goods

For GST purposes, secondhand goods are goods previously used and paid for by someone else. They don't include:

• new goods
• primary produce (unless previously used)
• goods supplied under a lease or rental agreement
• livestock
• secondhand goods consisting of any fine metal of any degree of purity.

If you supply secondhand goods as a part of your taxable activity, you must charge GST on the goods. In some cases the seller from whom you purchase secondhand goods may not be registered for GST and you may not have an invoice. However, you can still claim one-ninth of the purchase price in your GST return, provided you keep a record of full details of the transaction. Refer to our GST guide (IR375) for further details.

Ceasing your GST registration just got simpler

You can now just phone us to cancel your GST registration, instead of having to write to us.

If you have stopped all taxable activities and do not intend to carry on another taxable activity within the next 12 months, or if your turnover for the next 12 months will be less than $40,000, simply phone us and let us know.

You will need to complete your final GST return and include all taxable supplies made and received from the beginning of the taxable period to the date you cease.

INFOexpress enhancement

Our INFOexpress line 0800 257 773, which you can use to order stationery, has now been enhanced. The new interactive voice response system enables you to request options verbally, rather than having to key in numbers on the touch tone keypad of your telephone.

It is much easier to order your stationery this way, so try out the new service.

Payments at Westpac

If you are making your GST payment at Westpac bank, please remember to take your GST return with you. Westpac will forward the return to us to be processed, so you do not need to send us an additional copy. If you are unable to provide your GST return at the same time you make your payment, you will need to post the return to us.

Freepost envelopes

Good news! Freepost envelopes are being included along with your GST returns. We have done a lot of research with businesses over the past couple of years on business tax compliance costs, and the issue of postage costs for filing returns has been raised consistently.

Freepost envelopes will be provided to employers and GST-registered businesses for posting returns and payments due from January 2004 onwards.

Download ›

PDF | 138kb | 2 pages

 

Download Acrobat Reader to view PDF files

Report an accessibility problem for this page

 

 

Date published: 23 Nov 2004

Back to top