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Topic # 67422 1-Sep-2010 15:04
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So GST is changing on 1st October as we all know.

Do companies who are simply choosing to pass through the GST rise have to inform their customers?  Obviously in most cases the price chaqnge is obvious because you see a price when you buy something, but in service companies, like telcos, you do not constantly see a price.
It's pretty standard that a telco/ISP contract says they have to give you notification of 30 days of any price changes.   Does this still apply when the price change is as a result of GST?

If it does, have any of the telcos/ISPs announced what, if any, changes they are going to make, given that is is September the 1st right now, and hence 30 days before the GST change.

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  Reply # 375344 1-Sep-2010 15:30
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  Reply # 375352 1-Sep-2010 15:52
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IANAL but I don't think they have to give you notification, just it is a nice courtesy if they do.

From http://www.ird.govt.nz/changes/gst/consumers/:

The GST Act allows a supplier to increase their prices on existing agreements or contracts to compensate for the associated increase in GST (ie 2.5%).

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  Reply # 375362 1-Sep-2010 16:20
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I asked 2degrees a while back on their Facebook page about GST price increases, the short answer I got back was No.

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  Reply # 375371 1-Sep-2010 17:06
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DjShadow: I asked 2degrees a while back on their Facebook page about GST price increases, the short answer I got back was No.


Is that no they won't give 30 days notice or no they won't be increasing the prices?

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  Reply # 375374 1-Sep-2010 17:07
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Teeps:
DjShadow: I asked 2degrees a while back on their Facebook page about GST price increases, the short answer I got back was No.


Is that no they won't give 30 days notice or no they won't be increasing the prices?


No to increasing prices

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  Reply # 375401 1-Sep-2010 17:59
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Mmmm I got a text from Telecom this morning saying what is on the website, but in much fewer words. Pretty sure it would depend on the wording of your contract, considering they generally have a clause saying something about their ability to change without warning...

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  Reply # 375412 1-Sep-2010 18:22
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Further to what Kraven said above: (and IANAL either) It's a rise in GST, not a rise in the price of products or services themselves. Everyone has had plenty of warning that GST is going up so there's no reason not to expect you'll end up paying that little bit extra for everything and no reason for any supplier of products/services to have to notify anyone.

If a retailer/supplier/whatever decides to leave the price of a product/service at the same GST inclusive price after 1 October as it was before the GST increase, then effectively they are dropping the price of the product/service and you're lucky.

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  Reply # 375422 1-Sep-2010 18:33

NonprayingMantis: So GST is changing on 1st October as we all know.

Do companies who are simply choosing to pass through the GST rise have to inform their customers?  Obviously in most cases the price chaqnge is obvious because you see a price when you buy something, but in service companies, like telcos, you do not constantly see a price.
It's pretty standard that a telco/ISP contract says they have to give you notification of 30 days of any price changes.   Does this still apply when the price change is as a result of GST?

If it does, have any of the telcos/ISPs announced what, if any, changes they are going to make, given that is is September the 1st right now, and hence 30 days before the GST change.


It all depends on how you quote your prices. In my case all my prices are exclusive of GST, so that price isn't changing, so there is no realy need to inform cusomters, you just invoice them with the new gst rate on in. Businesses get the gst back anyway, so in many cases they aren't paying more. I have however put an announcement on my website, that GST is going up, but I think everyone in NZ knows this is happening now.

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  Reply # 376840 5-Sep-2010 11:53
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So it's still $10 text, not $10.22 text according to Telecom's page.

Reading Vodafone's site, this seems a bit more worrying. On my account, I get things like international texts charged at $0.17, with GST added on at the end. So this would mean another dollar on my bill every month.

Vodafone's lucky for consumer inertia/laziness - otherwise I'd be on 2degrees right now.

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  Reply # 376842 5-Sep-2010 11:58
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One thing to remember is that calls or charges for this month will be be subject to the new GST rate if they are billed after the 1st October.

If Telco A for example decided that SMS's would remain at 17c + GST and your billing date is the 2nd October then all SMS's sent this month will be billed at the 15% GST rate, not 12.5%


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