- Pricing – will the increase be passed on or absorbed? Are price tags pre-printed? What will the new price points be and will consumers accept these?
- Consumer Demand – there may be a surge in demand before 1 October 2010, with reduced demand after this date. Businesses will need to consider their stock and working capital requirements;
- Accounting and IT Systems – can your current systems cope with a mid-year change and 2 different GST rates? Can new GST codes be setup in your accounting and IT systems?
- Contracts Spanning 1 October 2010 – how are these impacted? Is the contract “plus GST” or is it “inclusive of GST” or is it silent as to whether GST is included?
- Time of Supply – special rules determine when a supply is to be treated as being made for GST purposes. Businesses will need to ensure that they correctly adhere to and apply the time of supply rules;
- Credit Notes and Bad Debts – how are these treated? What rate applies?
To read more on the GST changes Click Here.