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GST workshop - Record keeping
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An introduction to GST, record keeping.
When you’re registered for GST, it’s important that you know about the requirements for your records, especially for invoices.
Tax invoice requirements
Up to $50 (receipt)
$50.01 - $1,000:
- “Tax Invoice”
- GST number
- Description of goods
- "GST included"
A sample tax invoice is shown, pointing out the information it must have when the supply is over one thousand dollars.
- Name of the supplier.
- The words tax invoice.
- Supplier’s GST registration number.
- Date of issue.
- Name and address of the recipient.
- Description of the goods and services supplied.
- Amount, excluding tax, charged for the supply.
- Quantity of the goods supplied.
- GST charged.
- Total amount payable.
Now we’ll talk about the invoice requirements for GST purposes.
There are specific details that you must have on your invoices if you’re registered for GST.
There are three levels of detail required, depending on the total of the invoice.
For transactions of fifty dollars or less, a tax invoice isn’t needed, a basic receipt is enough to claim the GST.
For supplies over fifty dollars and up to one thousand dollars a tax invoice is required.
The invoice must clearly show the words tax invoice, as we see in the top right of this example.
The name and GST number of the supplier, in this case, Swinton Appliances and GST number, one, zero, eight, seven, six, five, four, three, two.
It also needs the date the tax invoice was issued, here the date is the eighth of November two thousand and ten.
Plus a description of the goods and or services supplied, a gas oven in our example.
And finally, it must show the total amount payable, and a statement that GST is included.
In our invoice the total is one thousand six hundred and ten dollars, and we’ve actually quoted the GST content of two hundred and ten dollars.
For invoices over one thousand dollars, we need everything mentioned previously, plus three other pieces of information.
We must have the name and address of the purchaser, in our invoice, this is Mereana’s Place, Main Street, Petone.
And we also need the quantity, or volume of goods or services, on our invoice we have one gas oven.
So you must hold a tax invoice to claim the GST for any supply over fifty dollars.
If the supply is under fifty dollars, you’ll still need a receipt of some description.
If the original invoice is paper, you can store a photo of it, and then discard the original.
Use your cashbook to record what your business sells and buys.
Free download under “record books”.
You must keep your records for 7 years.
IR3B schedule of business income.
A cashbook is a simple, but useful way of recording income and expenditure, as well as GST.
If you don’t have software, we have a free cashbook you can use.
The template is an Excel spreadsheet you can download for free from our website.
To find it, search, record books, select the record books link, and the template is at the bottom of the page.
There’s an instructions tab in the spreadsheet to tell you how to use it.
You need to keep your business records for at least seven years, even if you stop trading.
If you’re considering using a tax agent, talk to them before purchasing a software package.
They may have the package available with their preferred service provider.
If you’re already using an accounting package, check if it’s compatible with the software your tax agent uses.
If you prefer to keep a paper cashbook, make sure you buy one with at least twelve columns.
To work out what expense headings to use for your cashbook, have a look at our, schedule of business income, template.
You’ll find it on our website by search for IR3B.
Using these headings can save you time at the end of the year when you’re completing your income tax return.
Tax relief - COVID-19 Coronavirus
- If you've been affected by the downturn in business due to COVID-19 coronavirus, we have a range of ways to help.
- Talk to your tax agent, visit ird.govt.nz/covid19, or phone 0800 473 566 for more information.
Go to ird.govt.nz/covid19 for more information.
The Government has introduced a number of ways to support businesses that have been impacted by COVID-19.
This includes options with respect to tax relief.
For the latest updates please go to our website and view the COVID-19 page.
You can also contact your tax agent, or ring our contact centre to discuss your specific situation.
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