Recently Clubs New Zealand has had a number of calls from Clubs in relation to the increase in GST for gaming machines.  Clubs New Zealand queried the Dept of Internal Affairs about the effect of the rise in GST on 1st October 2010 and they have supplied us with the following article which is also now available on the DIA and EMS websites.

"Societies will be aware that as from 1st October, the rate of Goods and Services Tax (GST) will increase from 12.5% to 15%.

Questions have been asked as to what impact this will have on the calculation of GMP and/or the provision of EMS reporting over the change-over period.

The short answer is that there will be no changes. The value of the 'supply of services' by the society is the amount of money paid to participate in machine gambling after deducting the amount of all prizes paid (or payable).

For the purposes of their GST returns, societies will need to calculate their GST payable (output tax) at the rate of 12.5% before 1/10/2010 and at the rate of 15% after.

The fact that the new rate comes into effect on a Friday, while the weekly calculation period of Gaming Machine Profits (GMP) runs from Monday to the following Monday is immaterial; EMS reports GMP on a daily basis for each business day through the media of Daily Gaming Machine Meter Totals Snapshots and Weekly Venue Activity Reports.

In particular, the Society Level Weekly Venue Activity report gives a day-by-day breakdown of the collective GMP across all of its venues in the "Current Week Society Daily Totals" table. It should therefore be possible to easily work out the correct amount of GST payable before and after the change.

Should societies wish to know more about implications of the new GST rate, they should contact the Inland Revenue Department."

(SOURCE: Department of Internal Affairs, received 28/09/2010)