Legal requirement to show GST on invoice (from a big retailer)?

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tripp

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#265365 18-Jan-2020 11:12

Random question

Just made a purchase from one of the big brand retailers here in nz ($450) and just notice on their receipt that they have not said it included GST or have the GST amount.

It has the words "tax invoice" on it but nothing with their GST number or that gst is included (or the amount of gst).

I would think that this should be shown?

LennonNZ

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#2401204 18-Jan-2020 11:25

https://www.ird.govt.nz/gst/tax-invoices-for-gst/how-tax-invoices-for-gst-work

There is a slight difference if below or above $1000 but for your ammount.

If you get or issue a tax invoice for supplies, goods or services worth $1,000 or less including GST, it must show the standard information plus:

the total amount payable
a statement that the total amount payable includes GST.

tripp

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#2401205 18-Jan-2020 11:35

Well guess I'll send them a message about it. Would have sucked if it was purchased for a business

Benjip

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#2401213 18-Jan-2020 11:46

I would have thought the "Tax Invoice" text would indicate that GST is included in the total since it's not otherwise specified.

BlinkyBill

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#2401215 18-Jan-2020 12:10

Tax invoices for gst only apply to gst-registered people / businesses.

if you are gst-registered and wish to claim the gst component of your purchase, then you should ask for a tax invoice disclosing the gst amount, and they must supply it (except for purchases less than $50).

If you are not gst-registered, then this discussion is irrelevant.

sqishy

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#2401218 18-Jan-2020 12:31

It needs their GST number and can say price is inclusive of 15% GST or show amount of GST.

tripp

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#2401221 18-Jan-2020 12:33

Have message the company and sent them an example and they will look into it and their requirements.

dejadeadnz

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#2401231 18-Jan-2020 12:50

Complying with the laws of the land is an elementary requirement of operating a business. And legal requirements as to invoices are pretty well known. Personally, I wouldn't give business to any company making this sort of mistake again. If they are this slack over something so simple, who knows what other shenanigans they might get up to?

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richms

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#2401232 18-Jan-2020 12:59

Benjip:

I would have thought the "Tax Invoice" text would indicate that GST is included in the total since it's not otherwise specified.

Will depend on if the items are subject to GST or not on the invoice. That is why they should show the amount of GST paid so that you are not making an assumption and claiming GST on things that may have not had GST collected.

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BlinkyBill

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#2401240 18-Jan-2020 13:23

richms:

Benjip:

I would have thought the "Tax Invoice" text would indicate that GST is included in the total since it's not otherwise specified.

Will depend on if the items are subject to GST or not on the invoice. That is why they should show the amount of GST paid so that you are not making an assumption and claiming GST on things that may have not had GST collected.

there are very few items not subject to GST. Your bank statement, for example, nor your rental statement. The very term ‘tax invoice’ refers to items that are taxable. And since there is only one rate of this tax, the tax component is very easy to calculate.

mattwnz

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#2401296 18-Jan-2020 14:07

Send the invoice to the IRD to see if it complies.

richms

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#2401307 18-Jan-2020 14:44

BlinkyBill:

there are very few items not subject to GST. Your bank statement, for example, nor your rental statement. The very term ‘tax invoice’ refers to items that are taxable. And since there is only one rate of this tax, the tax component is very easy to calculate.

Mobile top up, gift vouchers, pure precious metal items, some charges for late payment (not all of them) - so there is plenty of things that go on a standard invoice or statement that are not going to have GST on them. Its normal to put the GST amount on an invoice for this reason and to not have it would indicate that it is either not an invoice (which OP says it is claiming to be) or the programmer stuffed up generating it (highly likly)

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BlinkyBill

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#2401416 18-Jan-2020 16:02

richms:

BlinkyBill:

there are very few items not subject to GST. Your bank statement, for example, nor your rental statement. The very term ‘tax invoice’ refers to items that are taxable. And since there is only one rate of this tax, the tax component is very easy to calculate.

Mobile top up, gift vouchers, pure precious metal items, some charges for late payment (not all of them) - so there is plenty of things that go on a standard invoice or statement that are not going to have GST on them. Its normal to put the GST amount on an invoice for this reason and to not have it would indicate that it is either not an invoice (which OP says it is claiming to be) or the programmer stuffed up generating it (highly likly)

here is the list of gst exempt items https://www.ird.govt.nz/gst/charging-gst/exempt-supplies it does not include mobile top ups or gift vouchers (for which gst is payable). Virtually everything is not exempt. Tax invoices are used where a gst-registered person/organisation supplies taxable items. In the very unlikely event that someone supplies both exempt and non-exempt items, probably they itemise the gst components for non-exempt; but that is most likely in the fine metals category only, and even then restricted to dealers/importers of fine metals, and not retailers.

i don’t know categorically the legal position, but the large retailer is definitely compliant, and the gst dollar value does not need to be itemised if the words ‘gst included’ are on the tax invoice. So the legal position is inferrable.

BlinkyBill

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#2401425 18-Jan-2020 16:20

Just to clarify my comment on gift vouchers - purchasing the voucher itself, being neither a good nor a service, is not taxable. Instead it includes 15% to cater for the gst component when exchanged for a non-exempt good or service.

richms

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#2401436 18-Jan-2020 17:16

Have you bought a prepay topup or steam voucher and looked at the reciept at all?

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BlinkyBill

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#2401447 18-Jan-2020 18:07

richms:

Have you bought a prepay topup or steam voucher and looked at the reciept at all?

no, but https://www.geekzone.co.nz/forums.asp?topicid=208708

you are paying gst on both of those, collected by the supplier and remitted to IRD