Your GST return for the period ended 30 September will be prepared as usual, except that there will be an additional adjustment calculation for those on the payments basis.
Essentially the adjustment calculation is:-
Accounts Payable – Accounts Receivable ÷ 51.75.
This will be included in either Box 9 or Box 13 of the GST Return. See the example on page 2 of the GST105 below.
To simplify transactions after 1 October 2010, ensure your data file is as clean as possible e.g. credit notes entered, bad debts written off.
Complete all reconciliations to 30 September 2010 when preparing GST Return. You will require a full list of Accounts Payable and Accounts Receivable as at 30 September 2010 to prepare this GST Return.
All invoices issued on or before 30 September will have GST charged at the rate of 12.5%. All invoices issued on or after 1 October will have GST charged at the rate of 15%.
A relief provision allows 11 days after 30 September to issue invoices dated 30 September 2010 and earlier. (The rationale for this is to allow the “plumber’s wife” two weekends to catch up on invoicing.)
To prevent errors between periods, it is essential that you lock all periods to 30 September 2010 once GST is complete.
Accounting and payroll software should be updated prior to entering any transactions from 1 October 2010.
The following links are useful for the GST rate change and completing the transitional GST adjustment:
IRD Guide – 2010 Rate Change Guide
This describes both the transitional process and details how to deal with specific transactions.
The return for the period ended 30 September 2010 is the usual GST return.
GST 105 – GST Rate Change Adjustment Calculation Sheet
This is the form to adjust for Accounts Payable and Accounts Receivable which will then be included in either Box 9 or Box 13 of your September GST Return.
MYOB GST Checklist
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