GST and Duty

[NZ BMW 368]

So the land lord isn't paying GST on the income?

No, but they will pay tax on that income depending on how they have arranged their affairs.

[deeveus 81]

No, but they will pay tax on that income depending on how they have arranged their affairs.

I guess if it's one property it isn't in the best interests of the land lord to become GST registered as the income isn't likely to exceed 40k, however when a LL company owns several it would then be in it's interests to become GST registered therefore although not visible there would be a GST content in the rent payments as the company would have to pay GST.

Sorry to get off track!

[central3 31]

Here's my recent invoice with tax on the gross amount:

Edited for bigger pic.

Buggered if I know - my invoice is the same as yours except my description is AUTO PARTS, the value is 596, frieght is 1 and GST is 89.55

[kiwi535 538]

i have bought in motorcycle parts woth more than 400 and didnt pay any extra Its the luck of the draw sometimes.

[deeveus 81]

i have bought in motorcycle parts woth more than 400 and didnt pay any extra Its the luck of the draw sometimes.

Yer & once they pull you up on it there's no backing down!

[jeffbebe 1560]

Think it's luck of the draw sometimes. I bought a brand new bumper from Europe and expected to pay duty and nothing. Bought a used guitar a few years ago from Japan and got stung (heavily, it was a $3K guitar) despite it being 30 years old.

They probably look at value - where can we cream the most tax, rather than what the actual goods are.

[Etwenty1 45]

how do you unsubscribe a thread in this thing?

[Allanw 1071]

how do you unsubscribe a thread in this thing?

Click on "My COntrols" top, just right of centre, then on the left side, under "My Subscritions" you can veiw by topic od forum.

Change the date range to "from the beginning" and there they all are! Unsubscribe those you want to.

[Sick Puppy 1]

That is why is was called Grab, Steel, Take or God Save Trading when it was first introduced. It is the easiest revenue gathering measure the Government ever introduced they get you the business owner to do all the work and then they spend it. It is time for a review of the whole GST system in my opinion but in saying that it is only tinkering. What the Government give you in one hand they legally steel out of the other as they need to gather the revenue to keep the system a float. As other have said just know that $400 is the cut off point and tailor your purchase's accordingly.

What does steel have to do with it?

*Steal, not steel...

GST system here is pretty simple compared to the UK and Australia... would rather have our system with a few exclusions and a $400 limit than say the UK's VAT system and their $30(!) limit. Kids clothes? No VAT. Adult clothes? VAT. Eat in? VAT. Takeaway? No VAT. Or something like that - the list goes on...

So the land lord isn't paying GST on the income?

No, but they will pay tax on that income depending on how they have arranged their affairs.

I guess if it's one property it isn't in the best interests of the land lord to become GST registered as the income isn't likely to exceed 40k, however when a LL company owns several it would then be in it's interests to become GST registered therefore although not visible there would be a GST content in the rent payments as the company would have to pay GST.

Sorry to get off track!

Without knowing anything about the levels of tax knowledge here, domestic rental has no GST, commercial rental (Business premises) do. Regardless of what kind of entity that owns the property, residential landlords cannot register for GST; commercial ones can, as they would be over the threshold of $60k (increased a few years ago). Those that own both residential and commercial would be limited to expenses relating to commercial properties, and any curly expenses (ones involving both) would have to be apportioned accordingly.

There are members on here that own both, and there are threads etc about it.

Edited June 7, 2012 by Sick Puppy

[Docile 64]

i brought in a full set of KYB shocks and springs.. did not get pinged for gst and duties

[_ethrty-Andy_ 2132]

I guess if it's one property it isn't in the best interests of the land lord to become GST registered as the income isn't likely to exceed 40k, however when a LL company owns several it would then be in it's interests to become GST registered therefore although not visible there would be a GST content in the rent payments as the company would have to pay GST.

Sorry to get off track!

im getting into taxation law here, but they cant claim the gst on expences for the house either. claiming back on the fuel to go and do expections is a grey area

edit: whoops bet to it by Andrew

Edited June 7, 2012 by _Ethrty-Andy_

[Sick Puppy 1]

edit: whoops bet to it by Andrew

lol, I have to make myself useful here somehow!

Nah, no grey area - no GST claim if solely residential landlord activity - it's a GST exempt activity/business, so any expenditure that goes with it is treated the same way, even if GST is imposed.

Come income tax time though, the expenditure is claimed in full / GST inclusive - GST registered businesses remove all GST from their income / expenditure totals to calculate the income tax liability.