GST changes announced in Budget 2010 affect the time of supply treatment for some GST transactions.
When there is a GST rate change (in this case from 12.5% to 15%) the general time of supply rule applies for most transactions. This means that a supply is considered to take place at the earlier of the time:
- an invoice is issued, or
- any payment is received by the supplier.
The period you need to use to account for the GST, depends on the accounting basis you use.
|If you use the ...||then you can account for GST...||and claim GST ...|
when you receive:
||when you receive an invoice.|
|payments basis||when you make or receive any payment during a taxable period||when you make or receive any payment during a taxable period|
|hybrid basis||account for GST on your sales (income) using the invoice basis||on your expenses (purchases) using the payments basis.|
Although the general time of supply rule applies for the majority of transactions, there are some special times of supply rules for some specific transactions.
Find out more about the supply rules for some specific transactions in the table below.
Date published: 25 Jun 2010
Back to top