Impact of new GST group on the Sundry Tax Invoice/RCTI statement

Department of Education

21 February 2020

Schools and corporate were previously separate entities for the purposes of the Goods and Services Tax (GST). This meant that GST was required to be charged on all transactions between schools and corporate. On 1st February 2020, schools and corporate formed a single GST group. As a result, GST will no longer be charged for any transaction between schools and corporate.

Impact for schools

From 1 February 2020 the Sundry Tax Invoice/Recipient Created Tax Invoice (RCTI) statement will only record GST- exclusive charges. This will make the process easier, as schools will only need to use the out-of-scope tax codes P5 for expenses and S5 for revenue.

Choosing the right tax code

When selecting a tax code, the general ledger (GL) account type will determine whether you need to use an 'S' (sales) or a 'P' (purchasing) tax code:

  • When using a revenue GL 4XXXXX - use an 'S' tax code
  • When using an expense GL 5XXXXX - use a 'P' tax code

If you have created a Sundry Tax Invoice/RCTI template, please review and edit tax codes as required.

Sundry Tax Invoice/RCTI Journal reminders

  • Process your Sundry Tax Invoice/RCTI Journal for January 2020 statement 23.11.2019 - 24.01.2020 by 29 February. Please ensure the statement amount has been posted to the clearing account (500030).
  • Note: This is the last statement you will receive that includes GST.
  • See the Process a Sundry Tax Invoice/RCTI Statement Journal QRG.

The QRG will be updated in response to the changes outlined above for the February statement 01.02.2020 - 21.02.2020

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