Gnucxash_2008-03-26

[Derek Atkins]

Hi,

Please remember to CC gnucash-user on all replies using your
mailer's Reply-To-List or Reply-All functionality.

viewnz at paradise.net.nz writes:

> H Derek from Leo, some info on how GST works for New Zealand. New Zealand Summer
> time is +13 GMT.  So we are a day ahead of most people.

That shouldn't matter for anything.

> The Goods and Services Tax is a Value-added tax that exists in a number of
> countries. Please see:
>
>     * Goods and Services Tax (Australia)
>     * Goods and Services Tax (Canada)
>     * Goods and Services Tax (Hong Kong)
>     * Goods and Services Tax (New Zealand)
>     * Goods and Services Tax (Singapore)

Yes, I understand what GST is.  And I understand how it's applied.

> Goods and Services Tax (GST) is a Value Added Tax introduced in New Zealand on
> October 1, 1986 at 10%, but later increased to 12.5% on June 30, 1989.
>
> End users pay this tax on all liable goods and services directly, in that it is
> included in the purchase price of goods and services.
>
> GST registered organisations only pay GST on the difference between GST-liable
> sales and GST-liable supplies (ie pay GST on the difference between what they
> sell and what they buy: income less expenditure). This is accomplished by
> reconciling GST received (through sales) and GST paid (through purchases) at
> regular periods (typically every 2 months, with some qualifying companies opting
> for 1 month or 6 month periods), then either paying the difference to Inland
> Revenue Department (IRD) if the GST collected on sales is higher, or receiving a
> refund from IRD if the GST paid on purchases is higher.
>
> Unlike most similar taxation regimes, there are few exemptions - all types of
> food are taxed at the same rate, for example. Exceptions that are present
> include rents collected on residential rental properties, donations and
> financial services.
>
> Businesses exporting goods and services from New Zealand are entitled to
> "zero-rate" their products - effectively, they charge GST at zero percent. This
> permits the business to claim back the input GST but the eventual, non-New
> Zealand based consumer does not pay the tax (businesses that produce GST-exempt
> supplies are not able to claim back input GST.)
>
> Because businesses claim back their input GST, the GST inclusive price is
> usually irrelevant for business purchasing decisions, other than in relation to
> cash flow issues. Consequently, wholesalers often state prices exclusive of GST,
> but must collect the full, GST-inclusive price when they make the sale and
> account to the IRD for the GST so collected.
>
> The headline price must always be GST-inclusive in advertising and stores. The
> only exceptions are for businesses which claim a mainly wholesale client-base.
> Otherwise, displaying a prominent GST-exclusive price (i.e. larger and more
> obvious than the GST-inclusive price), is illegal.

So... is there a question in here somewhere?

-derek

> Quoting Derek Atkins <warlord at MIT.EDU>:
>
>> Hi,
>> 
>> viewnz at paradise.net.nz writes:
>> 
>> > Leo wrote:
>> >
>> > Hi gnucash, email gnucash-user at lists.gnucash.org
>> >
>> > I have Two questions.
>> >
>> > 1. Can I run a two monthly cash book as in New Zealand we have
>> > something called GST like UL Vat which is 12.5% and is worked on a
>> > two monthly bases. I have had a small look through man pages and did
>> > not find any information on the subjects.
>> 
>> Yes. The business features (Invoice/Bill/Exp Voucher) support Tax
>> Tables and you can apply this directly to items. However there's no
>> "automatic VAT" applied to transactions entered directly in the
>> register.
>> 
>> > 2. Does gnucash automatically generate GST figures or can a plug in be
>> added.
>> 
>> What do you mean by "GST figures"? If you mean a GST Report, then
>> no, it doesn't currently do that but one could easily write one
>> and plug it in.
>> 
>> > Leo
>> > email: view.nz at paradise.net.nz
>> 
>> > Please remember to CC this list on all your replies.
>> > You can do this by using Reply-To-List or Reply-All.
>> 
>> -derek
>> 
>> -- 
>>  Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
>>  Member, MIT Student Information Processing Board (SIPB)
>>  URL: http://web.mit.edu/warlord/ PP-ASEL-IA N1NWH
>>  warlord at MIT.EDU PGP key available
>>  
>
>
>

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
       warlord at MIT.EDU                        PGP key available