NZ Tax Code - linking accounts

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PhilBBA
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NZ Tax Code - linking accounts

Hi,

 

I am trying to set up foreign currency including a tax code for NZ GST. Australian based company which deals in NZ. Whilst I read on post that invoices should be marked export and GST free, this isnot the case in this situation - company is carrying on business in NZ and must report NZ taxes as well as Australian.

 

So, I have created a tax code at 15% to reflect the liabilities in the local accounts. When I go to create the linked accounts for NZ GST, only the exchange account is displaying. When I look in the account list I can see the main GST account in NZD that I have created however when tryint to link to the new tax code it does not appear and can not therefore be linked.

 

For example - GNZ is new tax code at 15%. 2-1220 is GST NZD 15%, set up in NZD with exchange account 2-1221 automatically created to reflect the exchange difference. In the tax code GNZ I can not link account 2-1220 (can not even see it) unless I change it to AUD, which is incorrect. 

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Ultimate Partner ronatbas
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ronatbas
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Re: NZ Tax Code - linking accounts

@PhilBBA

 

One of the regulars on this forum is @Mike_James who is a New Zealand based Certified Consultant and he will be able offer some valuable insight into how to go about this.

I am of the view that the New Zealand arm of the company  should be run on a separate file and gross figures  brought into the master file periodically. That way you would be claiming the NZ GST as an expense.

Mike is sure to know the right way to do it.

 

 

Ron B
BAS Group
03 95588477

info@basgroup.com.au
Making MYOB work for you
Ultimate Partner Mike_James
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Mike_James
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Re: NZ Tax Code - linking accounts

Hi @PhilBBA@ronatbas, excuse the delay in replying, and thank you Ron for the referrral! We had a public holiday on Monday, and I have been looking up some material relating to an NZ client who used Premier Classic and had a similar situation in reverse. 

 

I was able to give them a process to follow and some customised reports to extract the relevant AUD GST values. 

 

Since you are creating foreign currency accounts, you must be using v19.x, since at the time of writing, with v2017.1 just released, foreign currency has not yet been added to AR Live.

 

Both countries have a rule that GST should be accounted for in your home currency, which is why you will only see home currency accounts for selection as linked GST accounts.

 

Creating NZ GST codes, and using separate linked accounts, is the correct first step. The standard GST code that MYOB provide in NZ files is "S15". Your linked accounts will have to be in AUD. I presume you will be recording sales (and costs?) in NZD?. We can provide an enhanced GL detail report that will filter transactions by currency, so that you can obtain the basic information for your NZ GST returns. (This would mean using our report writer add-on). 

 

If you would like further details please contact me directly. 

 

 

 

 

 


Regards, Mike (mike@datawise.co.nz)
DataWise Limited (www.datawise.co.nz), developers of:
DataWise Report Writer - Custom Reporting from MYOB programs
(Including AccountRight Classic/Live, and exo Payroll)

PhilBBA
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Re: NZ Tax Code - linking accounts

Hi Mike,

Thank you for the detailed info. That has answered the question and solved the problem.

Cheers
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