Prepaid - GST Receipt

Forums › 2degrees (including Slingshot, Orcon, Flip, Stuff Fibre, MyRepublic, 2talk and Vocus) › Prepaid - GST Receipt

breakaway

112 posts

Master Geek

#175461 30-Jun-2015 17:57

Found myself in an emergency situation recently (no internet). Picked up a spare 2deg SIM that I had in my toolkit, activated it, went online and loaded $99 through the 2degrees site using my credit card and bought the 12GB zone data. Woohoo!

But come accounting time, I realise I didn't have the GST receipt. So I requested it through the web interface.

After a few e-mails back and forth, I'm being told if I want a proper physical GST receipt for the purchase of the topup, I must purchase a topup from a gas station or similar. Apparently, 2degrees doesn't provide a GST receipt.

It was my understanding that if any GST registered businesses supplies goods or renders services to either a person or another business in NZ, they MUST also supply a GST receipt. Furthermore, the IRD website says they must provide a copy of the GST receipt with 30 days should the customer requires it.

So can someone shed some light on what's happening here? Trying to find a gas station to buy a physical topup voucher isn't an acceptable situation.

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#1334371 30-Jun-2015 18:20

Do you need a physical receipt? Did they offer a digital receipt? Digital should be fine.

n4

959 posts

Ultimate Geek

#1334373 30-Jun-2015 18:21

Technically I think the top up is not a sale that is charged GST. It is a transfer of funds into your prepaid account. The GST is charged on your use of those funds by actually making calls, texts, combo purchase etc. Hence why they provide a GST invoice based on your usage, not the top up.

You can get that by going to the 'usage' screen.

Samsung Note20 Ultra, on 2degrees

jbard

1377 posts

Uber Geek

#1334376 30-Jun-2015 18:23

n4: Technically I think the top up is not a sale that is charged GST. It is a transfer of funds into your prepaid account. The GST is charged on your use of those funds by actually making calls, texts, combo purchase etc. Hence why they provide a GST invoice based on your usage, not the top up.

You can get that by going to the 'usage' screen.

Just about to say the same thing, it has been mentioned on Geekzone a number of times before: http://www.geekzone.co.nz/forums.asp?topicid=139279

breakaway

112 posts

Master Geek

#1334384 30-Jun-2015 18:55

n4: Technically I think the top up is not a sale that is charged GST. It is a transfer of funds into your prepaid account. The GST is charged on your use of those funds by actually making calls, texts, combo purchase etc. Hence why they provide a GST invoice based on your usage, not the top up.

You can get that by going to the 'usage' screen.

Firstly, the amount was >$50, which appears to be the cutoff point.

Secondly, I appreciate that I'm buying credit, but it's not like I can withdraw the $$ and do other stuff with it. Effectively, I've paid them a non-refundable price for a service. I topped up $99 and bought the data pack straight away. Have you ever heard of anyone getting a pro-rated refund for a party used pre-paid data pack? Neither have I. Also, it's not like if I have 50% of my data cap left over at the end of the period, it's not like it rolls over -- it just disappears into oblivion.

Sorry, none of this adds up.

richms

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#1334386 30-Jun-2015 19:09

Skinny let you do this, so clearly it is required.

Cant you report places to the IRD that wont give you a GST invoice? I had a hell of a time getting one out of a dairy for about $80 worth of crap I bought once.

Richard rich.ms

n4

959 posts

Ultimate Geek

#1334398 30-Jun-2015 19:15

breakaway:
n4: Technically I think the top up is not a sale that is charged GST. It is a transfer of funds into your prepaid account. The GST is charged on your use of those funds by actually making calls, texts, combo purchase etc. Hence why they provide a GST invoice based on your usage, not the top up.

You can get that by going to the 'usage' screen.

Firstly, the amount was >$50, which appears to be the cutoff point.

Secondly, I appreciate that I'm buying credit, but it's not like I can withdraw the $$ and do other stuff with it. Effectively, I've paid them a non-refundable price for a service. I topped up $99 and bought the data pack straight away. Have you ever heard of anyone getting a pro-rated refund for a party used pre-paid data pack? Neither have I. Also, it's not like if I have 50% of my data cap left over at the end of the period, it's not like it rolls over -- it just disappears into oblivion.

Sorry, none of this adds up.

Actually yes if you check the terms and conditions you will get a refund of your prepaid balance if you close your account, if you request one.

This is just the way it is. Anyway - what is wrong with the GST invoice based on usage? Usage means in this case a purchase of the data pack - so essentially the same thing.

Samsung Note20 Ultra, on 2degrees

DeroyBoy

262 posts

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#1334399 30-Jun-2015 19:15

Sharesies

Trade NZ and US shares and funds with Sharesies (affiliate link).

breakaway

112 posts

Master Geek

#1334401 30-Jun-2015 19:16

I did that. That's when they told me they don't do GST invoices.

DeroyBoy

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#1334402 30-Jun-2015 19:20

Strange I get a page that starts

Invoice Request

By selecting this option you are requesting that we send you a tax invoice for your usage......

breakaway

112 posts

Master Geek

#1334430 30-Jun-2015 20:12

Did you actually get a PDF or other type of invoice up on your screen/e-mail though?

Here's the response I got from them when trying to press them for a GST invoice:

Thank you for your email.

I can arrange for a GST receipt to be sent out to you but please be aware it is based on usage not top ups. For future if you would like a GST receipt for the top up you will need to buy a prepay top up voucher from a dairy, supermarket or gas station.

I guess the expectation is all business customers (people who care about the GST receipt) would be on account... but this is not always practical.

graemeh

2078 posts

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#1334438 30-Jun-2015 20:19

breakaway: Did you actually get a PDF or other type of invoice up on your screen/e-mail though?

Here's the response I got from them when trying to press them for a GST invoice:

Thank you for your email. I can arrange for a GST receipt to be sent out to you but please be aware it is based on usage not top ups. For future if you would like a GST receipt for the top up you will need to buy a prepay top up voucher from a dairy, supermarket or gas station.

I guess the expectation is all business customers (people who care about the GST receipt) would be on account... but this is not always practical.

No, the law is that the GST is charged on the usage, not the topup.

This is why they say the GST receipt is based on usage, because that is how the tax law is written.

breakaway

112 posts

Master Geek

#1334451 30-Jun-2015 20:47

graemeh:

No, the law is that the GST is charged on the usage, not the top-up.

This is why they say the GST receipt is based on usage, because that is how the tax law is written.

I appreciate that is how it is interpreted, but that's a moot point. Once the top-up is made and an add-on purchased, that money is effectively gone from my account. I won't under any circumstance be able to get it back.

Just like how if I go down to the supermarket or gas station, hand over $99 and get a top-up that way. Money is gone, but I have a GST receipt. Magic?

What does "Usage" based mean anyway? Is that when I "Use" the credit in my account (as in to buy a data pack)? I've already done that. Is it when I "Use" up a portion of the 12 GB of data or it expires? The pack lasts 6 months. I don't think I'll use all 12 GB in that time-frame. So I have to wait for it to expire -- i.e. I have to wait 6 months to get a receipt for something I bought? Seems ludicrous.

DeroyBoy

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#1334455 30-Jun-2015 20:55

Buying the data pack is usage.

Anything the reduces the $ balance of your prepay account is usage for tax purposes.

richms

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#1334456 30-Jun-2015 20:56

graemeh:

No, the law is that the GST is charged on the usage, not the topup.

This is why they say the GST receipt is based on usage, because that is how the tax law is written.

So how does that work when you get the topup at a supermarket and it has a reciept?

Surely 2 places cant make an invoice on the same product sale?

Richard rich.ms

mattwnz

20165 posts

Uber Geek

#1334471 30-Jun-2015 21:30

n4: Technically I think the top up is not a sale that is charged GST. It is a transfer of funds into your prepaid account. The GST is charged on your use of those funds by actually making calls, texts, combo purchase etc. Hence why they provide a GST invoice based on your usage, not the top up.

You can get that by going to the 'usage' screen.

I don't believe that is correct. I believe it is clearly a purchase. No different from say buying a gift voucher from a store. When you buy a gift voucher, you get a tax recipt, same as when you use that gift voucher. If it wasn't a purchase, then if the company wen tout of business, you would become an unsecured crediter. They wouldn't be holding the credit in a third party trust account either. Should a tax receipt be given as it is over $50? Yes.

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