NZ GST Rate Change to 15%

The New Zealand GST Rate changes from 12.5% to 15% on the 1st October 2010. The changes within Sage 50 are straightforward but could be time consuming to do manually if, for example, you have a lot of recurring invoices or quotes. We are supplying our Adept Tax program with new forms and a rate change utility that will breeze through the job. And best of all it's all free if you are an existing Adept Tax user.

• Just select the Check for Updates menu option in earlier versions of the Adept Tax program to upgrade to the latest version.
• The new Tax Forms for use after the 1st October change will be available from Monday the 27th September. Once again just select the Check for Updates option and they will be downloaded and installed in your Adept Tax program.
• Select the Library option and tick the forms you require to suit your GST accounting basis.
• While you are in the Library look in the News section to find the link to our Step by Step Rate Change Instruction Sheet.
• If you are on Payments Basis GST we have a GST 105 form that will calculate the GST Rate Change Adjusment for you. Please ensure that you read the instructions on our Step by Step Rate Change Instruction Sheet to ensure that you use this form correctly.

• The main T1 tax code
• Quotes and Proformas
• Sales and Purchase Orders
• Memorized and Recurring Invoices, Credits and Orders
• Bank Recurring Entries

Contact one of our Adept Resellers to obtain a copy of the Adept Tax program if you don't have one already, then simply follow our Step by Step instructions.

Our solution simply requires the T1 Tax Code to be changed to 15% and a new T3 Tax Code to be setup that uses the Old 12.5% Rate. This T3 Tax Code is used to comply with IRD's rules on the "Late Claim of GST" and "Debit and Credit Notes".

The instructions in our Step by Step Rate Change Instruction Sheet are based on the recommendations of Sage UK as detailed in the "Ask Sage" Sage 50 UK Knowledgebase. The Author has been through two UK VAT Rate changes in the last couple of years so the method described is both "Tried" and "Tested".

For further information on the technicalities of the rate change, read the IRD's GST Rate Change Guidance for software developers. Don't worry, there is very little programmer's geek talk in it !

You may have received an email fom Sage Pastel in South Africa with the subject "Are you ready for the GST rate change?". If you click on the Sage 50 box shot in this email it will take you to a set of instructions that I am afraid are Incorrect for New Zealand. If you were to follow these instructions you would no longer be able to use the S1 Special Product Code in your Orders and Invoices as this requires that the Standard Rate of VAT is held in T1.