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Thread ID: 141842	2016-03-09 21:39:00	Charging GST on professional services supplied to an overseas client?	Billy T (70)	PC World Chat

Post ID	Timestamp	Content	User
1417203	2016-03-09 21:39:00	Hi Team Through circumstances, and for various reasons with which I won't bore you, I have gained considerable expertise in the operational performance and reliability of evidential breath test machines, and as a result I am occasionally contacted by Attorneys from local and overseas jurisdictions requesting that I analyse a particular machine's operational and maintenance records etc and provide a report. I have to submit an invoice for payment by my current Australian client and as it is rather large (very complex case, requiring many hours of research) the addition of GST will probably choke the poor guy. My reading of the IRD's approach to services carried out in NZ (the results of which are then emailed to overseas clients) is that charges to said overseas client for services performed by a GST registered business resident in and operating from New Zealand, and delivered overseas, do not incur GST. However, if I get that wrong, I have no chance of recovering that GST from the client or his Attorney. This matter comes up because my present client's account is a significant sum and the GST would be significant. Members of the PF1 community have a very wide range of skills, so I am hoping that somewhere out there is a member who has non-material cross-Tasman trade i.e intellectual property in document form, and knows the answer. Cheers Billy 8-{)	Billy T (70)
1417204	2016-03-09 22:12:00	You would be better off contacting IRD, getting the persons name, as well as links to the site that says what you have to do relating to GST. If possible get a confirmation email sent out. That way "IF" later on they decide to change their minds you have some proof that you were advised differently. You usually find when someone has to give their name as a contact/reference they make sure the info is correct because its their ass that's gonna cop it if it backfires :) I dont mean any disrespect to ANYONE in this forum, BUT if someone gives advise saying YES its all OK, no gst, then it turns around and isn't are they going to pay up whats owed if its wrong ( in your case) ?? I think we all know the answer to that ;)	wainuitech (129)
1417205	2016-03-09 23:01:00	looks like zero rated gst to me www.ird.govt.nz Certain exported services The following exported services are zero-rated: Services supplied directly in connection with land or buildings located outside New Zealand. These may include architectural, real estate and legal services. Example A New Zealand architect designs a building to be constructed on an overseas property for an overseas client. Services performed directly in connection with goods situated outside New Zealand at the time the service is performed. Example A New Zealand insurance company insures a vehicle that is located outside New Zealand. Services supplied to non-residents outside New Zealand at the time the service is supplied. Example Legal advice about a criminal matter given to a person living in Australia by a lawyer who is resident in New Zealand.	bevy121 (117)
1417206	2016-03-09 23:15:00	You would be better off contacting IRD, getting the persons name, as well as links to the site that says what you have to do relating to GST. If possible get a confirmation email sent out. That way "IF" later on they decide to change their minds you have some proof that you were advised differently. You usually find when someone has to give their name as a contact/reference they make sure the info is correct because its their ass that's gonna cop it if it backfires :) I dont mean any disrespect to ANYONE in this forum, BUT if someone gives advise saying YES its all OK, no gst, then it turns around and isn't are they going to pay up whats owed if its wrong ( in your case) ?? I think we all know the answer to that ;) Same as above. As a favour I used to do tax returns for some. However, tax laws change and apart from our own, I wouldn't like to risk giving advice or doing it for anyone else now. IRD staff aren't all ogres and as in any occupation there are those who are more capable than others. I would also make sure I asked for their response in writing to ensure I had full understanding of the matter. Even with one of my own I phoned my husband's niece (who is a tax inspector) and her off the record response was "tell them to go take a jump".	Marnie (4574)
1417207	2016-03-09 23:28:00	We've been in a similar situation where we have been contracted to do work in NZ but we have to invoice a company in Australia. Our accountant spoke to the IRD about it and they said that we had to include GST, because we are doing the work in NZ. The Aus company didn't like it but they could probably claim it back on their end anyway.	CYaBro (73)
1417208	2016-03-10 03:05:00	Was zero rated last time I did it.	Chilling_Silence (9)
1417209	2016-03-10 04:13:00	It's zero rated, service from here but given to someone overseas, who is not a resident here. Same applies for internet services provided to overseas. Later this year it may all change in October. As for CYaBro, his is different if the service is for here and the work is done here but the person charged is an overseas client. They will be required to pay the GST because of the third party receiving the service. Cheers, KK	Kame (312)
1417210	2016-03-10 08:57:00	You need to be sure of your own situation but I certainly worked from home for about six months for an overseas company, the software was also for overseas not NZ. No GST charged. Prior to that I worked for the same overseas company on NZ based software which I did collect GST for.	Ofthesea (14129)
1417211	2016-03-10 22:50:00	looks like zero rated gst to me www.ird.govt.nz Example: Legal advice about a criminal matter given to a person living in Australia by a lawyer who is resident in New Zealand. If I change 'legal' to 'professional', and 'lawyer' to 'expert', then that is a precise fit for my situation. On balance though, it seems to me that it might be safer that I add the 15%, then if the client's Lawyer queries the inclusion of GST, and I consult IRD for a ruling on this particular invoice, I can send an amended invoice for the client. However, it is a fair bet that if it went the other way around, and I later submitted a supplementary invoice to recover the GST component, some under-arm bowling might take place. The next invoice will be for travel to Adelaide and attendance at the trial, and I'm not quite sure how that invoice will work out, but if I change "Legal advice about a criminal matter given to a person living in Australia by a lawyer who is resident in New Zealand" to "Professional advice about a criminal matter given to a person living in Australia by an Expert who is resident in New Zealand." then that should be exempt GST as well. Here's hoping.............. Thanks for the collective wisdom, I now have a safer path to travel. I'll include the GST on both counts as I can always submit a revised invoice if the Lawyer or his client raise the issue of GST exemption [and NZ IRD clears it], but I'd have a hard job extracting more money from Oz if I didn't charge it in the first instance. Cheers Billy 8-{) :thumbs: As a matter of interest, the NZ EBT machines are current 'state of the art' and more reliable and accurate than previous versions, but nevertheless, all breath analysis results can be [legally] manipulated by the test subject by up to 10% +/- or more if you know how (you wouldn't want +10% of course :eek:), and this can make the difference between a pass or a fail if you are close to or just over the limit. However the most reliable way to influence any BAC result is simply to not drink and drive. That way you can go through the traffic stop and/or roadside screening without concern. It is also possible to blow a positive BAC result when stone cold sober, as there are a wide range of foods and other common non-alcoholic substances that can produce a low-range reading, or push a marginal alcohol reading over the limit.	Billy T (70)
1417212	2016-03-10 23:14:00	Ah is that what you've been testing for them, again? Fun stuff! :D	Chilling_Silence (9)
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