Updated: Aug 27
It is important to know the rules around claiming back GST on any expenditure over $50 that has GST included in the price.
Perhaps the single most important point to remember is;
You cannot claim back GST on any purchase relating to business activity if you do not have a tax invoice. For example, if you buy petrol for $80 in order to claim back the GST component you must have a tax invoice.
Tax invoices over $50 and less then $1000 must show
Every tax invoice you get or issue must show this standard information:
words 'tax invoice' in a prominent place
name (or trade name) and GST number of the seller
date of issue
description of the goods or services.
be issued in New Zealand Dollars.
total amount payable
a statement that the total amount payable includes GST.
Tax invoices over $1,000 must show
All the above information plus;
name and address of the buyer
quantity or volume of the goods or services,
GST-exclusive amount, the GST amount and the GST-inclusive amount.
GST-inclusive amount and a statement that GST is included if GST is charged at the standard rate for all the goods or services listed.
For receipts under $50
To claim GST on receipts under $50 you have to have the receipt. Lost receipts while the company may still reimburse are regardless not deductible for GST purposes.
Purchases by employee or shareholder employee
For receipts or invoices to be deductible to the company, the company must be the holder of the original receipt.
That means that if an employee or shareholder employee buys a tax deductible supply through their own bank account or credit card they must put this receipt through the expenses system for reimbursement with the original receipt attached.
Of Note – Inland Revenue Department advise that
Regardless of the amount of the sale, you must issue a tax invoice to another GST-registered entity if they ask you for one. You must do this within 28 days. It is an offence not to do this and we may charge you a penalty.
Of note; A tax invoice can only be issued once. If the buyer loses theirs you can give them another one but you must put the words 'copy only’ on it.
This material has been prepared for information purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your normal source of expert advice before acting on anything.