| Post ID |
Timestamp |
Content |
User |
| 563466 |
2007-06-28 03:36:00 |
Good point.
My model would probably require the Australian based company to invoice the customer directly the $3000 and then pay Billy T $1000 for "NZ services". |
godfather (25) |
| 563467 |
2007-06-28 03:49:00 |
I agree with Techie - spot-on. The $375 is an excess Billy has in his account above the nett $1000, so all of it is properly payable to IRD. No loss anywhere. The service is provided in NZ so bears GST, and maybe 1/9th of the payment to Oz is deductible as an input - but that I'm not clear on. |
Winston001 (3612) |
| 563468 |
2007-06-28 10:04:00 |
Billy you really need to stop thinking so hard. To put another spin on it, It is no different to you charging $3000+GST for labour and paying $2000 in wages. GST is still $375 and net income id $1000. GST is on the gross supply made, not the net profit. |
wotz (335) |
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