Office 365 Billing and GST

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dimsim

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#268192 4-Mar-2020 14:12

Just wondering if anyone else knows if i should charge GST for an Office 365 Subscription.

The billing comes out of Singapore and is Zero rated for GST so if I charge GST there is no offset.

Should I just charge the subscription as zero rated?

Dynamic

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#2432893 5-Mar-2020 07:56

Are you registered for GST?

If yes, then yes you do add GST.

If no, then no you do not add GST.

Double-check with your accountant.

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amanzi

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#2432931 5-Mar-2020 09:02

Best advice!

Dynamic:
Double-check with your accountant.

dimsim

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#2432964 5-Mar-2020 10:04

Thanks, sage advice :)

Apparently our Govt about a year ago clamped down on the overseas based software/service providers billing without GST. If the vendor you purchase from doesn't have your GST number then they will charge you GST but if they do have your GST number they dont.

In my case it is Ingram Micro which do have my GST number so I am invoiced with Zero rated gst but must charge GST on my sale.

This is so the actual end user is the one paying the GST - essentially I am just the Tax Man's minion collecting gst on their behalf.

Jogre

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#2436609 12-Mar-2020 08:33

Ingram and Microsoft would both charge GST, but always check with an accountant if you are unsure.

BlinkyBill

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#2436623 12-Mar-2020 08:58

dimsim:

Thanks, sage advice :)

Apparently our Govt about a year ago clamped down on the overseas based software/service providers billing without GST. If the vendor you purchase from doesn't have your GST number then they will charge you GST but if they do have your GST number they dont.

In my case it is Ingram Micro which do have my GST number so I am invoiced with Zero rated gst but must charge GST on my sale.

This is so the actual end user is the one paying the GST - essentially I am just the Tax Man's minion collecting gst on their behalf.

ingram micro is a NZ business based in Rosedale. They are charging you gst, but are not issuing a tax invoice. Whether or not gst is collected depends on whether the seller is gst-registered or not, not whether or not the customer is gst-registered.

if you are gst-registered you are indeed required to remit the gst collected to Inland Revenue.