GST (Goods and Services Tax) is a New Zealand value-added tax with a current rate of 15%. End users pay this tax on all liable goods and services directly (the purchase price includes GST). GST need to be included on most goods and services that we offer within the print and advertising industry in New Zealand.
When quoting and invoicing jobs, an Account Manager needs to specify the price EXCLUDING GST, but also clearly show the GST component and the total including GST. Two main exceptions to this, where you both quote AND invoice a job without a GST component would be:
Value of goods or services including GST = $1,500
$1,500 multiplied by 3 = $4,500
$4,500 divided by 23 = $195.65 (GST content)
$1,500 minus $195.65 (GST) = $1,304.35 (value of goods or services without GST)
Value of goods or services excluding GST = $560
$560 multiplied by 0.15 = $84 (GST amount)
$560 plus $84 = $644 (value of goods or services including GST)
Comments will be approved before showing up.
Keeping clients happy will lead to repeat business and word-of-mouth referrals. Keeping suppliers happy could mean sharper pricing and improved turnaround times. Keeping your team happy will allow you to move work around your agency quickly and without fuss. And, most of all, it will mean people will like working with you, which should open more doors than you could ever imagine.
Our gift to you!
SIGN UP TO RECEIVE REGULAR ACCOUNT MANAGEMENT TIPS FROM AM-INSIDER, AND YOU WILL RECEIVE 100% OFF THE PURCHASE PRICE OF ANY ONE RESOURCE FROM THE AM-INSIDER WEBSITE. THAT'S ONE RESOURCE
CLICK HERE TO SIGN UP NOW!
It's our way of saying THANK YOU for subscribing, plus a BIGGER THANK YOU for caring about your career and wanting to become the best account management professional you can be. We're in behind you all the way.