New Zealand GST Settings with New Zealand GST calculator

Introduction

FBO One has a GST calculator for the New Zealand GST rules. The calculator has a logic which can also be applied in other countries such as Thailand. This calculator will apply or exempt GST/VAT based on the Handling station country, the destination country and whether services provided are deemed to be airside or landside.

There are 3 basic scenarios

  1. Both the handling station and destination are considered domestic (e.g. New Zealand) - GST/VAT is applied to all services with no exemptions.
  2. Handling station is domestic and the destination is to a non domestic station - GST/VAT is applied to all services with the exception of services marked as Airside e.g Catering or Fuel
  3. Handling station is non domestic and the destination is either international or domestic - No GST/VAT is applied

Scenario 3 is typically only applied if the FBO is providing regional coordination i.e if the flight is handled at an airport outside of the country considered as Domestic e.g. New Zealand. In this case the system will not apply GST/VAT and will print 'No GST' or 'No VAT' on the invoice statement. In this case, the user is also able to override the system and select applicable GST/VAT charges per handling order.

Settings:

DomesticStationGroupName=New Zealand - this setting must be set to New Zealand. If the calculator is being used for another country, the Station Group name should still be New Zealand, but the country referenced by the group can be the handling country e.g. Thailand

TaxLabel - This setting can be either '=GST' or '=VAT' depending on the country using the calculator. For New Zealand this is GST, whilst for Thailand this is VAT. Changing the setting will update all the GST/VAT labels found in FBO One. (If not specified the default value is GST)

NOTE: When using the TaxLabel setting, the Custom Values used to override VAT/GST must also be updated to reflect the same label used by the calculator - GST or VAT:



Examples:

  1. Flight is handled and departing inside New Zealand

    Service
    GST percentage
    GST code
    Invoice remark
    Handling (landside) 15%GGoods & Services Tax of 15% on items marked with G
     Catering (airside)15%GGoods & Services Tax of 15% on items marked with G
  2. Flight is handled in New Zealand and departing international

    Service
    GST percentage
    GST code
    Invoice remark
    Handling (landside) 15%GGoods & Services Tax of 15% on items marked with G
     Catering (airside)0%FGoods & Services for export are exempt of GST
  3. Flight is handled outside of New Zealand

    Service
    GST percentage
    GST code
    Invoice remark
    Handling (landside) 0%NNo GST
     Catering (airside)0%NNo GST

If there are exceptions from the above rules, the GST can be manually overridden per handling order using the custom value options to Force Charge GST or to Force Exempt GST. This is most likely to occur when the flights are handled outside New Zealand and a GST (Australian GST or other) should be charged. In this case:

  1. edit the order and select the 'Force Charge GST'.  The system will calculate GST for each service as in example 1.
  2. If the 'Force Exempt GST' is used, the system will calculate GST as in example 3.
  3. Removing the selection from the Edit order, the system will return to the automatically calculated GST.

Please note that there is also the possibility to override the GST code -  GST percentage per service. Example: in Australia, GST for handling service should be 10% instead of 15% GST. This can be done from the Edit service page and tick the box to override the automatically calculated charges. One precondition is to have the handling product configured as below 'can override vat'.