The rate of GST is changing on 1 October 2010 to 15%. Get this wrong and it could cost you dearly, especially if you are purchasing or leasing property. This short note covers a couple of important situations that could save you money, in terms of the New Zealand GST Transitional Rules. First we consider the situation where you purchase a property now, but the contract does not become unconditional until after 1 October 2010. This is likely to happen more and more frequently as the time gets closer to 1 October 2010, and will be something to watch out for if you are in the market for a house. This will only apply if you are purchasing from a registered vendor.
EUREKA! Gift Duty Applies to Donations!
Unlike the naked Archimedes’s joyful exclamation, the recent expose of the Eureka Trust comes as a more serious warning for those working in the charitable sector. Charities never need to bother with tax issues do they? Actually, yes …
Is a GST Domestic Reverse Charge a Good Idea?
GST is a hazardous tax, not only for taxpayers, but also for the Government. Unlike income tax, the Government has a commitment to refunding GST, and this part of the GST mechanism leaves the tax open to manipulation. The hazard is greatest where the assets sold are largest. The domestic reverse charge mechanism will to an extent reduce the risk the Government faces from being ripped off through the GST system.
What are the transitional rules for the GST rate increase if I account for GST on a payments basis?
What are the transitional rules for moving to the 15% GST rate in New Zealand from 1 October 2010 if you account for GST on a payments basis? The transition rules applying to those on a payments basis are arguably the most complex part of the change to the GST rate. This article helps explain these specific aspects of the transitional rules.
GST on the sale of land between registered persons is being reduced from 15% to 0%. What are the transitional rules that registered persons should be aware of?
The rules relating to GST on the supply of land between registered persons is being changed. Broadly, rather than charging GST at 15%, the rate is being changed to 0%. There is much by way of technical detail to understand regarding these changes. This article very briefly considers the transitional provisions that will need to be taken into account. It is necessarily technical. If you have any questions about it, please contact your usual Parry Field lawyer.