Goods and Service Tax

DESCRIPTION

GST is a consumer tax which is added to the price of goods and services by those parishes who are registered for GST. Donations received are not subject to GST.

 FUNCTION

The tax ultimately finishes in the hands of government as part of its national tax receipts.

 POLICY

All parishes should register for GST to maximise their financial position as payments of GST usually exceed receipts of GST and refunds can be claimed. Registration for GST is compulsory where gross receipts from taxable activities exceed $60 000 p.a. 

 GST Invoices are required for all charges exceeding $50.  GST is not recoverable without such an invoice.

 Food costs can be deducted by a Parish registered for GST under the special rule applying to non-profit bodies, being Section 20(3K) of the Goods and Services Tax Act 1985. Accordingly a GST deduction can be claimed for food purchases by Parishes which is supplied to the Priest.  Please note that to claim a GST input tax deduction the Parish must purchase the food, this means that if the Parish reimburses the Priest for the cost of food, no GST deduction will be allowed.

 RESOURCES OR SERVICES

N/A

 

CONTACT DETAILS

Diocesan Accountant
Chanel Centre, 51 Grey Street
PO Box 4353
Hamilton East
Tel:  07 856 6989
Fax: 07 856 7035

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