Payment Basis GST Report for New Zealand


In New Zealand we can pay GST in several different ways.

Invoice Basis: On invoice - when you generate an invoice to a customer
Payments Basis: On payments - when the customer actually pays your invoice
Hybrid - a combination of the two

We use the Payments Basis as do a lot of businesses here in New Zealand.

You also have a choice of GST periods - in our case 2 monthly.

So as an example:

Let’s assume our GST period is January and February.

We invoice a customer on 1st January and they pay on the 27th March.

Now in reporting this the invoice is raised in January (within the GST period) with the payment not being within this GST period.

So reporting wise we need a report that shows the GST due for payment received within January/February and not invoices produced otherwise in this example we would be paying GST on something not yet paid or due.

In this example the GST received for the payment in March invoiced January would then be due in the March /April period.

Is there a report or is it possible to create a custom report or are you able to create a Tax Summary (GST Report) on this GST Payment Basis so we can use

It seems to be a first rate piece of software for accounting from everything else we have tested with it so far :smile:

Thank you!

I know nothing about New Zealand tax laws. But the question you raise is the fundamental distinction between accrual- and cash-basis accounting.

@AblySourced, for now, generate Tax Summary report on Cash-basis.

It will show you amount of GST actually paid and collected.

I am New Zealand based and switched all my business to accrural basis for GST. Yes, you do take a hit paying GST on money not yet received but it all irons out in the end. In addition it makes the end year financial reporting easier in my view. However as Lubos says there is an option to select “Cash Basis” for the tax reports you may wish to pay on.