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  Reply # 1334464 30-Jun-2015 21:19
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richms:
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?


Indeed. Surely if you were to claim GST on a receipt from the supermarket, and then subsequently from your provider that would be fraud. I'm surprised they allow such a situation to occur.

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  Reply # 1334471 30-Jun-2015 21:30
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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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  Reply # 1334501 30-Jun-2015 22:07
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richms:
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?


Third party sale - it is different. 

I strongly agree that the law here is clear. 





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  Reply # 1334519 30-Jun-2015 23:00
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nakedmolerat:
richms:
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?


Third party sale - it is different. 

I strongly agree that the law here is clear. 


Buying a topup voucher is like buying foreign cash. And using the credit on your prepaid account is like spending that foreign cash. And due to how GST works, the supermarket only pays GST on the difference between what they buy the voucher for. And the price they charge you for it. So having an extra GST transaction / receipt in the "chain" doesn't cause any problems.





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  Reply # 1334534 1-Jul-2015 00:09
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My interpretation, is that buying a top up/voucher, is buying 'credit' with the store, so is a purchase at that stage. You then become an unsecured creditor in the store until you spend it.

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  Reply # 1334659 1-Jul-2015 09:19
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richms:
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?


As I see it a supermarket top up voucher is a GST receipt.  I have used this method before moving to Skinny..




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Old3eyes


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  Reply # 1334735 1-Jul-2015 10:19
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old3eyes:
richms:
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?


As I see it a supermarket top up voucher is a GST receipt.  I have used this method before moving to Skinny..


Doesn't make it legal though (according to IRD).

The reality is IRD aren't going to bother as long as you only claim the GST once and you can prove the transactions.  They may be pedantic but if you get audited and everything else is in order I really doubt they are going to bother about the GST claimed on a $99 topup.

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  Reply # 1334868 1-Jul-2015 11:21
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When you buy a top-up or gift card at a supermarket or similar, actually look at the receipt. It was say something along the lines of "items GST exempt" and mark the gift card as such. If you look at the GST amount it will be zero.

So while you get a GST receipt, the receipt will have zero gst on it for the gift card or top-up.

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2degrees

  Reply # 1335069 1-Jul-2015 14:15
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GST is based on the value of the services used by the customer each time they use the service. For example; if I make 10 minutes worth of casual calls or buy a value pack, I will be charged GST on that casual usage or pack.

We are required under legislation to provide a GST invoice within 28 days when one is requested, where we don’t already provide one (e.g. Pay Monthly).
GST requests are available for whole month periods only, we cannot complete a Prepay GST invoice for a current month, mid-month.
We do not offer a GST Invoice option for Pay Monthly, as a Postpay customer’s GST information is included on their monthly bill.

If a Prepay customer requires a GST invoice for tax purposes, they are able to request an invoice of their previous month’s GST activity which will be emailed to them at no charge.

The GST Invoice will reflect a customer’s consumption/use for the month PRIOR to their request e.g. if a customer calls in August we can only send a GST Invoice for usage in July or earlier.

It will not reflect top ups.

It is not a Statement of transactions.  

Customers can request a GST invoice through Care and in Your 2degrees.

Hope this helps.

POB



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  Reply # 1335539 2-Jul-2015 09:44
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I have received my GST Invoice.

It appears the terminology which I used in my original request for the GST receipt may have contributed to the confusion.

I should have asked for a GST receipt for the purchase of the actual $99 data pack itself, but instead I asked for the receipt of the actual top-up event which as explained above doesn't include the GST.

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