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'the Grad' Forum
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Buyer Created Tax Invoice (BCTI) |
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19900
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#1
12-April-2010
(time:
21:41)
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Posts:
5
Joined:
02-February-2010
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2 scenarios :
1. Contractor GST registered, Principal not
2. Contractor GST registered, Principal GST registered,
Query 1 : In scenario 1, would it be correct to assume that because IRD granted NZIA members 'class basis' approval, NZIA member generated Payment Schedules would constitute as a BCTI? Extrapolating from that, non-NZIA member (but NZRAB registered) generated Payment Schedule would not be a BCTI?
Is the NZIA member approved, because they are acting in the capacity of an 'agent', ie. essentially taking on 'power of the attorney', , therefore able to generate BCTI?
Query 2: Are there any situations where the Contractor would want to opt out of authorising the architect to issue a BCTI, as outlined in point 4, paragraph 1(b) in PN8.314 Tax Invoices /Payment Schedules. If so, why, especially in a residential contract (ie. under CCA no time limit on payment is imposed)
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Barry Dacombe
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#2
16-April-2010
(time:
15:17)
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Moderator
Posts:
12
Joined:
15-June-2009
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1. NZIA Members only have a 'Class Basis' status. It does not apply to Registered Architects or others who are not Members of NZIA
2. Both parties (Contractor and Principal) have to be GST registered. Strange I know but that is the way IRD have ruled.
3. The Contractor could opt out of allowing you to issue a BCTI on its behalf but remember SCC establishes this and a Variation to the Contract would be required to change this.
4. I refer you also to PN 9.509 which covers a number of other points of interest.
5. Incidentally any one can apply to IRD for 'buyer created' status. I did this for Warren and Mahoney some years before NZIA applied.
Barry Dacombe
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Barry J Dacombe, Principal Barry J Dacombe Architect
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Barry Dacombe
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#3
14-October-2010
(time:
16:51)
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Moderator
Posts:
12
Joined:
15-June-2009
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1. Correct on both counts. NZIA Practice Members when using NZIA ADS are the only ones approved to issue BCTI's.
2. They may but I cannot see why. By using the BCTI the contractor gets paid within the time contemplated by the CCA. Not using this facility only puts time at risk because once the Payment Schedule is approved it is only then that the Contractor can create a Tax Invoice and post it.
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Barry J Dacombe, Principal Barry J Dacombe Architect
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