In May 2010 the Government announced an increase in the GST rate as part of the Government budget. This was later passed by Parliament increasing the rate of tax on goods and services (GST) from 12.5% to 15% from 1 October 2010.
Any invoices dated on or after 1 October 2010 will include the new rate of 15% GST.
Applicable tax law means that supply is considered to take place at the time our invoice is issued not when energy was consumed.
There will be instances when a customer has had some supply of electricity in September but their invoice will be subject to GST at the 15% rate due to the invoice being issued and dated on or after 1 October 2010. For example; A customer receives a bill dated 15 October 2010, this bill is for energy usage between 10 September and 9 October 2010. The bill will have GST of 15%.
For more information on GST visit ird.govt.nz/budget.