More thoughts from the vineyard # 3

Date: 17 May 2012

Recently in the Winepress there has been an article on grape payment terms to the growers vs the GST basis growers file their GST on.
This push is coming from the IRD from an educational perspective (at this stage) … well done the IRD.

What does that mean to you as growers?

If your GST basis is set at payments - nothing, you pay GST when you see the cash deposit.

However if your GST basis is set at invoice you need to pay all the GST on the total harvest proceeds potential BEFORE you have seen all the cash.

The final thought .....

In any business where you have spread payment terms and you as the supplier, (i.e.the grower) are on invoice basis you need to be aware of your obligations and you may want to consider changing to payments.

As we have said before, this is stuff TvA does every day, come and talk to us and make sure your GST is set up to your best advantage.

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