GST registration number and invoices.

Forums › Off topic › GST registration number and invoices.

afe66

1824 posts

Uber Geek
+1 received by user: 664

Lifetime subscriber

Topic # 154418 27-Oct-2014 15:16

I'm a standard salaried employee paying PAYE etc and have started earning a little money on the side which requires generating tax invoices to get paid which is separate from my usual job.

Ive been advised I need to include a GST number as part of my invoice but the IRD website says I dont need to register for gst if I will earn less than $60,000

So does the gst 60k limit include money I earn from my day job or 60k from the side job? The issue being I doubt I wille earn 60k from this side job.

I'm going to see accountant but I need to generate the invoices before then.

A.

timmmay

14111 posts

Uber Geek
+1 received by user: 2529

Trusted

Subscriber

Reply # 1163003 27-Oct-2014 15:20

No.

http://www.ird.govt.nz/gst/gst-registering/register-who/

You must register for GST if you carry out a taxable activity and if your turnover:

was over $60,000 for the last 12 months, or

Taxable activities don't include:

work for salary or wages

AWS Certified Solution Architect Professional, Sysop Administrator Associate, and Developer Associate
TOGAF certified enterprise architect
Professional photographer

Boeingflyer

570 posts

Ultimate Geek
+1 received by user: 82

Trusted

Reply # 1163007 27-Oct-2014 15:23

You can voluntary register for GST. The 60k is excluding your PAYE income. If you go over 60k or expected to go over it in any 12 month period, you must register for GST. You will be able to claim all the GST for any expenses that goes towards the final product. GST is a huge topic, your accountant will go into it heaps more.

afe66

1824 posts

Uber Geek
+1 received by user: 664

Lifetime subscriber

Reply # 1163015 27-Oct-2014 15:38

Thanks for replies,

I'll generate the receipts including a gst component because I'm doing this tonight then will take advice of the accountant.
Hopefully the lack of a gst number wont stop the invoice from being paid..

A.

timmmay

14111 posts

Uber Geek
+1 received by user: 2529

Trusted

Subscriber

Reply # 1163019 27-Oct-2014 15:41

If you add GST you need a GST number. If you don't include GST you can get away without one.

AWS Certified Solution Architect Professional, Sysop Administrator Associate, and Developer Associate
TOGAF certified enterprise architect
Professional photographer

Rickles

1824 posts

Uber Geek
+1 received by user: 130

Reply # 1163042 27-Oct-2014 16:27

I used to invoice for work where I was under the annual GST threshold (and claiming various decuctions like equipment, office overheads etc wasn't worth it either), so I just included a statement on the Invoice along the lines that "There is no GST component required or levied in this invoice".

R.

Inphinity

2520 posts

Uber Geek
+1 received by user: 937

Subscriber

Reply # 1163050 27-Oct-2014 16:42

2 people support this post

afe66: Thanks for replies,

I'll generate the receipts including a gst component because I'm doing this tonight then will take advice of the accountant.
Hopefully the lack of a gst number wont stop the invoice from being paid..

A.

If you are not registered for GST you should not add GST to your charges. It is a very slippery slope to include a GST component in an invoice or receipt when you are not GST registered, and may put yourself or your customer at risk of fines or fraud charges.

Windows 7 x64 // i5-3570K // 16GB DDR3-1600 // GTX660Ti 2GB // Samsung 830 120GB SSD // OCZ Agility4 120GB SSD // Samsung U28D590D @ 3840x2160 & Asus PB278Q @ 2560x1440
Samsung Galaxy S5 SM-G900I w/Spark

Sideface

4211 posts

Uber Geek
+1 received by user: 2448

Lifetime subscriber

Reply # 1163059 27-Oct-2014 16:57

Inphinity: If you are not registered for GST you should not add GST to your charges. It is a very slippery slope to include a GST component in an invoice or receipt when you are not GST registered, and may put yourself or your customer at risk of fines or fraud charges.

+1 True. Don't do it!

Sideface

ech3lon

272 posts

Ultimate Geek
+1 received by user: 75

Subscriber

Reply # 1163071 27-Oct-2014 17:27

Sideface:
Inphinity: If you are not registered for GST you should not add GST to your charges. It is a very slippery slope to include a GST component in an invoice or receipt when you are not GST registered, and may put yourself or your customer at risk of fines or fraud charges.

+1 True. Don't do it!

I think op is well aware of this, he's simply asking if his current wage income comes into play in the 60000 requirements, which has been answered above.

afe66

1824 posts

Uber Geek
+1 received by user: 664

Lifetime subscriber

Reply # 1163082 27-Oct-2014 17:29

So if I don't charge get now and I get a get number later, then IRD won't expect me to pay gst retrospectively ?

Surely its only fraud if I don't pay the gst I collect to IRD ? Which I will.

A.

nitrotech

1228 posts

Uber Geek
+1 received by user: 152

Reply # 1163084 27-Oct-2014 17:31

One person supports this post

afe66: Thanks for replies,

I'll generate the receipts including a gst component because I'm doing this tonight then will take advice of the accountant.
Hopefully the lack of a gst number wont stop the invoice from being paid..

A.

Oh god please don't do this - even if you're planning on registering you can't put the gst component on the invoice until ird give you your gst number.

Simply put in the amount your charging as a total no mention of GST anywhere and you're totally legal as long as you're under $60k