Forum Home
PC World Chat
Thread ID: 89265	2008-04-25 19:07:00	These ads suck - we'll pay the GST !	Digby (677)	PC World Chat

Post ID	Timestamp	Content	User
662589	2008-04-25 19:07:00	I see some companies are using those stupid ads.... "we'll pay the GST" sale "if you hate paying tax - we deduct the GST for you !" To me these ads are pathetic, misleading and probably illegal ! For a start GST is only 12.5 percent so it is hardly a great deal. Secondly all they are really doing is dropping 12.5% off the price, and then making you pay GST on that lower price. I hardly think Michael Cullen would let a business let you off paying GST.	Digby (677)
662590	2008-04-25 19:44:00	Well that depends on how MUCH whatever is. Then it maybe a big deal	Speedy Gonzales (78)
662591	2008-04-25 23:05:00	It's better than paying full price and is something to consider if you're shopping around.	sal (67)
662592	2008-04-26 00:40:00	I disagree with you on all counts. While a 12.5% discount is hardly incentive for me to go on a shopping spree, what it amounts to for a consumer is that a $112.50 item (ie $100 + GST) will cost them $100. Now, when the consumer pays $112.50, the store has to pay that $12.50 GST to the IRD, but they're just passing it on. When they make the price $100, they're paying $11.11, but they're paying it themselves, ie "we'll pay the GST". This is assuming that the "real" price is still $112.50. The fact that they aren't paying the whole GST amount, but in fact $1.39 less than they would otherwise have to, is pretty irrelevant in my opinion. Yeah, all it is is a 12.5% discount but everybody knows that anyway. What do you expect when someone says they'll take the GST off?	george12 (7)
662593	2008-04-26 01:12:00	I disagree with you on all counts. While a 12.5% discount is hardly incentive for me to go on a shopping spree, what it amounts to for a consumer is that a $112.50 item (ie $100 + GST) will cost them $100. Now, when the consumer pays $112.50, the store has to pay that $12.50 GST to the IRD, but they're just passing it on. When they make the price $100, they're paying $11.11, but they're paying it themselves, ie "we'll pay the GST". This is assuming that the "real" price is still $112.50. The fact that they aren't paying the whole GST amount, but in fact $1.39 less than they would otherwise have to, is pretty irrelevant in my opinion. Yeah, all it is is a 12.5% discount but everybody knows that anyway. What do you expect when someone says they'll take the GST off? I disagree, and I think it is quite confusing. This is becuase some very small businesses don't infact have to charge GST anyway if they are not earning over a certain amount, which means that their prices are normally GST free. The ad I have seen, it is called 'GST Free Day'. To me, that means, that I won't get charged GST. Therefore GST shouldn't appear on my invoice at all. However I am sure that the invoice will still show GST on the amount, it will just be for a product that is discounted by 12.5% . ALso if it was a business purchase, 'GST free day' would imply tht I then couldn't claim back the GST amount on the purchase, however if it was a 12.5% discount I could. I wouldn't be surprised if some businesses assume that they can't cliam back the GST, due to it being called GST Free day.	robbyp (2751)
662594	2008-04-26 01:54:00	I agree with george but robbyp/Digby definately have a very good point, it is just a discount and it does amount to some savings for the customer, however to call it GST Free Day is very misleading since the customer will still see a GST ammount on their invoice. Ofcourse the machines are just set up so they show the calculated GST content of whatever the purchase price was anyway, but for it to be shown when it is after all advertised as gst free is very likely illegal. The right thing to do would be to say "11.11% Off Day", since the total savings is only that.	Deathwish (143)
662595	2008-04-26 03:30:00	I disagree, and I think it is quite confusing . This is becuase some very small businesses don't in fact have to charge GST anyway if they are not earning over a certain amount, which means that their prices are normally GST free . Where did you get that fairy land idea from? Yes, a small trader has the choice whether or not to register for GST, but if they don't register they can't claim it back either so it is all costed in to the customer's bill anyway . Their prices are definitely not GST free, they just don't account it separately . The benefits of GST registration easily outweigh the disadvantages, I quote and charge my clients my normal prices then add 12 . 5% . I claim back the GST from all purchases legitimately used in the operation of my business (including petrol which make $2/L drop to $1 . 75/L) so financially I am streets ahead of where I'd be if I wasn't GST registered . Cheers Billy 8-{)	Billy T (70)
662596	2008-04-26 03:52:00	Where did you get that fairy land idea from? Yes, a small trader has the choice whether or not to register for GST, but if they don't register they can't claim it back either so it is all costed in to the customer's bill anyway. Their prices are definitely not GST free, they just don't account it separately. The benefits of GST registration easily outweigh the disadvantages, I quote and charge my clients my normal prices then add 12.5%. I claim back the GST from all purchases legitimately used in the operation of my business (including petrol which make $2/L drop to $1.75/L) so financially I am streets ahead of where I'd be if I wasn't GST registered. Cheers Billy 8-{) If your main customers are non-GST-registered consumers, though, it's more beneficial not to be GST registered. Your average person doesn't care if he's being charged $90 with no GST or $80 + GST, it's $90 either way. In that case, GST is just like a 12.5% tax on your profits. If you're dealing with businesses, it's just plain unprofessional not to be registered anyway so the advantages/disadvantages are a moot point. That said, I was selling to businesses occasionally and I didn't register until I had to ...	george12 (7)
662597	2008-04-26 06:43:00	I see some companies are using those stupid ads.... "we'll pay the GST" sale "if you hate paying tax - we deduct the GST for you !" To me these ads are pathetic, misleading and probably illegal ! For a start GST is only 12.5 percent so it is hardly a great deal. Secondly all they are really doing is dropping 12.5% off the price, and then making you pay GST on that lower price. I hardly think Michael Cullen would let a business let you off paying GST. Quite right,lets have another law that bans such naughty adds.	Cicero (40)
662598	2008-04-26 10:46:00	Where did you get that fairy land idea from? Yes, a small trader has the choice whether or not to register for GST, but if they don't register they can't claim it back either so it is all costed in to the customer's bill anyway . Their prices are definitely not GST free, they just don't account it separately . The benefits of GST registration easily outweigh the disadvantages, I quote and charge my clients my normal prices then add 12 . 5% . I claim back the GST from all purchases legitimately used in the operation of my business (including petrol which make $2/L drop to $1 . 75/L) so financially I am streets ahead of where I'd be if I wasn't GST registered . Cheers Billy 8-{) No, it totally depends on the type of business . It may be worth it in your case, but some businesses may have very few expenses to claim the GST back on, while some are loss attributing . When you have very few purchases to claim the GST back on, and you don't need to register for GST, it probably isn't worth registering . eg . One rule does not suit all .	robbyp (2751)
1 2