THE NEW GST AND PROVISIONAL TAX RETURN, GST METHODS AND DUE DATES, GST LATE FILING PENALTIES
THE
NEW GST AND PROVISIONAL TAX RETURN
From
the start of the 2008/09 tax year, IRD will be sending out the new GST and
Provisional Tax Return (GST 103).
The GST 103 combines payment of GST and Provisional Tax onto one return.
It has been developed as a result of aligning the GST and Provisional Tax
due dates.
Key
Features of the GST 103
There
are eight versions of the GST 103, tailored to taxpayer’ individual
circumstances, and only including the fields they need to complete.
The version taxpayers will receive depends on their balance date, GST
filing frequency, if they use the ratio method to calculate their provisional
tax payments and whether they file GST Returns for more than one location or
branch. There
is also a non-tailored GST 103 version which can be downloaded from www.ird.govt.nz.
Who
will Receive the GST 103?
Taxpayers
will receive the GST 103 when they have a
GST payment due, regardless of whether a provisional tax payment is due
for a particular period or not.
As long as they remain registered for GST and liable for provisional tax,
they’ll continue to receive the GST 103 from IRD.
However, if they’re no longer for provisional tax (as a result of their
residual income tax falling below $2500) IRD will send out the GST 101.
The GST 103 should be received around the same time as the current GST
101, which is near the end of the taxable period for which the return applies.
GST
DUE DATES AND THE NUMBER OF PAYMENTS YOU NEED TO MAKE
GST
periods haven’t changed at all- only the due date you need to file and pay
your GST has changed. This means that you’ll still continue to pay your GST
the same number of times each year you have in the past.
If you file your GST Returns every two months, return dates are as
follows:
Two
Monthly GST Period ends on the last day of |
Under
the new due dates, your GST Returns and payments are due on: |
January |
28
February |
March |
7
May |
May |
28
June |
July |
28
August |
September |
28
October |
November |
15
January |
You
should refer to the GST taxable period and the GST date printed on the GST
Return that IRD send to you.
GST
RETURNS AND LATE FILING FEES
A
late filing fee is to be charged on late filing of GST Returns from
So
do remember to file your GST Return by due date, even if it is a Nil Return.
CHANGE
OF DUE DATES FOR PROVISIONAL TAX INSTALMENTS
The dates
for your provisional tax instalments are changing from the beginning of the
2008-2009 and are based on your income tax balance date.
They will be the same as to due dates for GST so that businesses only
need to file one return and make
one payment for both taxes
Whether
you’re registered for GST or not, you’ll benefit from the changes as
you’ll have more time to pay your provisional tax instalments
The number
of provisional tax instalments will depend on the option you use to calculate
your provisional tax payments and your GST filing frequency, (if you have one)
·
If you pay GST six monthly you’ll need to make two provisional
tax instalments
·
If you use the ratio option, you’ll make six provisional
instalments
·
Everyone else will make three provisional tax instalments
The new
provisional tax due dates will be:
|
31
MARCH BALANCE DATE |
NON-
STANDARD BALANCE DATE |
If
three instalments are due |
·
28
August ·
15
January ·
7
May |
The
28th day of the 5th, 9th and 13th
months after your balance date *** |
If
two instalments are due |
·
28
October ·
7
May |
The
28th day of the 7th and 13th months
after your balance date *** |
If
six instalments are due |
·
28
June ·
28
August ·
28
October ·
15
January ·
28
February ·
7
May |
The
28th day of the 3rd, 5th, 7th,
9th, 11th and 13th months after your
balance date *** |
|
|
***
If this falls in December or April it is due 15th
January or 7th May
respectively. |
There is no
change to end of year due dates.
RATIO
METHOD OF GST
To
use the GST ratio method, you will need to make an election to IRD before the
beginning of the year. For example,
an election must be made before
The
ratio method applies to taxpayers who:
·
have
operated a business and have been GST registered for two full tax years
·
the
RIT is more than $2,500 but less than $150,000
·
file
their GST Returns monthly or two monthly
·
have
made an election (in writing or by telephone call) by the first day of the
income year (
A
taxpayer may fall out of the ratio method if:
·
GST
registration ceases
·
a
GST Return is overdue by 60 days
·
the
taxpayer ceases to be a provisional taxpayer (e.g. makes a loss) and RIT is less
than $2500
·
the
taxpayer changes to six monthly filing.
Advantages
of the ratio method include:
·
provisional
tax is paid in line with
·
the
dreaded use of money will not apply to taxpayers who qualify for the method
Disadvantages
of the ratio method include:
·
missed
ratio changes could invoke penalties
·
falling
out could expose the taxpayer to use of money interest
·
does
not apply to shareholder employees
·
does
not apply to partners in a partnership
·
asset
·
Six
payments of provisional tax are payable during the year instead of the previous
three.
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