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24/09/2010 GST changes

With the GST rate increasing from 12.5% to 15% as of the 1st October, businesses and consumers need to start planning for a new environment.

Consumers will need to be prepared for possible price increases on goods and services.

It is to the discretion of businesses how much of the 2.5% increase is passed onto the consumer.

If a consumer has been invoiced for goods or services before 1 October 2010, the price will include the GST rate of 12.5%. There are exceptions which can be viewed via the ird website.

The ird advises that businesses should consider the impact the GST increase will have on accounting processes and software invoicing, returns, receipts as well as suppliers, customers and client

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