Microsoft and invalid GST Invoices

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48clyde

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#272635 7-Jul-2020 10:08

Hi,

It seems that Microsoft are NOT issuing valid NZ GST invoices for MS Office 365 for business subscriptions renewed online at least. We received an emailed invoice but NOT a NZ GST compliant invoice from Microsoft after renewing a number of 365 subscriptions online via paying by a credit card.

IR have confirmed that the inovice received is not a valid GST invoice, so we cannot claim the GST component on the invoice. This also raises the question about the validitity of Microsoft collecting GST if they are not issuing valid invoices. IR declined to discuss that!

Now, how does one find and contact the appropriate part of Microsoft NZ to resolve this issue and get a valid NZ GST Tax invoice so that the GST paid can be legally claimed.

And of course, what is the issue with the invoice received? It is missing the words "Tax Invoice", which is the first of a number of items IRD say that every tax invoice is required show to be a Tax Invoice. See https://www.ird.govt.nz/gst/tax-invoices-for-gst/how-tax-invoices-for-gst-work

Thanks

mdooher

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#2518408 7-Jul-2020 10:32

just claim it anyway...everyone else does.

this has been a problem with MS forever

Matthew

traderstu

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#2518421 7-Jul-2020 11:02

I used to have one of those rubber stamps with 'tax invoice'on it for situations like that.

mdooher

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#2518425 7-Jul-2020 11:05

When I cared I would edit the PDF...then I gave up and decided I wasn't ripping anyone off...

Matthew

traderstu

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#2518426 7-Jul-2020 11:07

Seriously though, if they are charging GST, and you ask for a tax invoice, they are obliged to produce one. If they don't, I would expect that the IRD should chase them up. Or is it fraud? If so, report them to the police.

mdooher

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#2518427 7-Jul-2020 11:09

traderstu:

Seriously though, if they are charging GST, and you ask for a tax invoice, they are obliged to produce one. If they don't, I would expect that the IRD should chase them up. Or is it fraud? If so, report them to the police.

They probably still have invoice generating software in "Alpha" :)

Matthew

mdf

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#2518439 7-Jul-2020 11:38

The rules for remote digital services are totally different to normal GST. If you are subscribing for business purposes (and you give Microsoft your GST number), all Office 365 subscriptions are zero rated (i.e. no GST is charged) so there is nothing to claim.

https://www.ird.govt.nz/gst/gst-for-overseas-businesses/supplying-remote-services-into-new-zealand

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mdooher

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#2518441 7-Jul-2020 11:42

Still, in theory anyway, you need the invoice to claim it as an expense

Matthew

Tzoi

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#2518447 7-Jul-2020 12:05

mdooher:

Still, in theory anyway, you need the invoice to claim it as an expense

You don't need a GST invoice for this, just a normal one.

For business to business sales from Microsoft, they don't need to provide a GST invoice because it is zero-rated and there should be no GST on the sale - provided you have given them your GST number. I understand this was to make it easier for overseas businesses to comply with the remote services GST rules

tchart

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#2518563 7-Jul-2020 15:50

mdf:

The rules for remote digital services are totally different to normal GST. If you are subscribing for business purposes (and you give Microsoft your GST number), all Office 365 subscriptions are zero rated (i.e. no GST is charged) so there is nothing to claim.

https://www.ird.govt.nz/gst/gst-for-overseas-businesses/supplying-remote-services-into-new-zealand

I had to reread your sentence a couple of times (that comma? )

AFAIK which is what youre saying (after reading it again)

1) If you are subscribing for business and DO provide MS with your business GST number then you shouldnt see GST on the invoice.

2) If you are subscribing for business and DONT provide MS with your business GST number then you will/should be charged GST on the invoice - and be able to claim this back.

Ive never been asked or prompted to supply my GST number for my Azure subscription and always claim the GST I am charged.

I'm with @mdooher on this claim it anyway. Why should you pay GST on a service but not be entitled to claim it back if its for business pruposes? To me it sounds like a Microsoft problem and not a you problem. Ultimately IRD should be chasing Microsoft as they are the ones who owe them the GST not you.

BlinkyBill

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#2518565 7-Jul-2020 16:01

Why is your accountant not advising you?

tchart

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#2518569 7-Jul-2020 16:09

So I just downloaded one of my Azure invoices. It has an MS address and GST number on. Assume they are different from O365 but i cant see why they wouldnt consider it an acceptable receipt/invoice.

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fearandloathing

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#2518621 7-Jul-2020 16:35

What every tax invoice must show

Every tax invoice you get or issue must show this standard information:

the words 'tax invoice' in a prominent place
the name (or trade name) and GST number of the seller
the date of issue
a description of the goods or services.
Tax invoices must be in New Zealand currency.

A tax invoice can only be issued once. If the buyer loses theirs you can give them another one but you must put the words 'copy only’ on it.

Are you saying, just because the invoice says 'INVOICE' and not 'TAX INVOICE' IRD won't accept it?

Looking at my invoices all other requirements have been met.