- Must be reported under a distinct section of the GST return Box 5(a);
- Requires the issuance of a tax invoice.
Amongst other changes,
- Supplies formerly zero-rated should now be subject to the standard rate at 0%;
- Similarly, all supplies which qualified for GST Relief will now also be subject to GST under a standard rate of 0%; and
- Supplies that were exempt under the exempt order, should remain exempt.
Affected businesses will need to think about (amongst others):
- Compliance – How to implement the transitional rules (e.g., on time of supply) to account for GST accurately and in a timely manner
- Processes – Reducing prices by 6% (where it is a standard rated supply) and revisit contracts to accommodate variance of GST rates. Where this is not followed, businesses might incur penalties under the Price Control and Anti Profiteering Act.
- Systems – Changing (or disabling) tax codes as well as revisiting tax code mapping.
Please click HERE for further detail on the potential impact on businesses as well as an overview of processes, systems and compliance changes which businesses might need to think about in light of the change.
Bildquelle: Katharina Wieland Müller / pixelio.de