GST (NZ) Tax Report Issue

dathudathu Member Posts: 2

Hi there,

I have been trying to calculate my bi-monthly GST return via Wave and it seems that the report calculates the tax incorrectly.

In New Zealand, GST is 15%
To calculate what the GST is on an inclusive amount, the formula is (N x 3) / 23
eg.
($115 x 3) / 23 = $15

It seems the reports in Wave calculate the tax by multiplying the TOTAL inclusive figure by 15% eg. $115 x 0.15 = $17.25

Does anyone have any suggestions to navigate this issue.. or am I missing something completely?

Many thanks

Comments

  • ConnorMConnorM Member, Administrator Posts: 1,175 admin

    Hey @dathu! This one's tricky, as it has to do with your local tax calculations, but I'd love to dig further into this with you. Can you let me know how you'd come to the conclusion that that's how the GST would be on an inclusive amount? Any documentation around these calculation rules would be fantastic for me to provide context to my accounting teams as we start looping in some escalated teams on this.

  • M10M10 Member Posts: 3

    @dathu Mate, have you sorted this? If so, could you help pls

  • dathudathu Member Posts: 2

    @ConnorM @M10 I actually now believe the issue I am having is the same as this user:

    Jsc592
    Member Posts: 1
    Yeah, I’m in Australia as well and I’m starting off a small business. All invoices need to be GST inclusive, but where I also notice this being required is in the expenses section as well. At the moment it’s geared to apply the tax on top of the amounts entered. If I’m entering an invoice received from another company, then I need the ability to select whether the prices on the invoice are tax inclusive (ie. deduct GST from the total to get the amount), or tax exclusive (ie. add GST on top of the amounts). It’s fine for business to business transactions, but most places I am spending money deal with end consumers so issue invoices with amounts inclusive of GST. At the moment I can do it, but I have to manually calculate the price excluding GST so my totals match at the end - which is quite cumbersome.

    December 7, 2019

    https://community.waveapps.com/discussion/comment/29082#Comment_29082

  • ConnorMConnorM Member, Administrator Posts: 1,175 admin

    Hey @dathu @M10

    After looking through that linked comment and the community, it's looking like the issue is that we do not have GST inclusive tax capabilities at present. I'm sorry to be the bearer of bad news here, but it looks like we do not have an ETA on when this might be added to the platform.

  • M10M10 Member Posts: 3

    Thats bit unfortunate. @ConnorM thanks for the update
    @dathu do you find any work around for this? cheers

  • VanesaVanesa Member Posts: 1

    only briefy looked at this, but when you look at the "sales Tax" report,, you could always just add their sales tax and tax amount columns together and do your own calculations.. very much a pain in the @#$% but if you have spent time organising the data (which is surprisingly laborious) might be a compromise

    @dathu @M10

    edited July 1, 2020
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