THE SALES TAX

New Zealand Herald, Volume LXX, Issue 21454, 30 March 1933, Page 10

THE SALES TAX

METHODS OF PAYMENT REGULATIONS GAZETTED

EXEMPTIONS AND REFUNDS

DECISIONS UNDER ACT

FIXING.VALUE OF IMPORTS

[by tei.eghatmi—own corkesvonpent] "WELLINGTON, Wednesday Important regulations and decisions under the Sales Tax Act are published in to-day's Gazette. Application forms for licences under the Act may now be obtained at all customs houses and must be in the hands of a collector within 21 days from to-day. Each application for a liconce must bo accompanied by a fee of £l. With the approval of the collector the returns may be made in respect of monthly accounting periods ending on any specified day of each calendar month in lieu of the last day of the month. Sales tax paid on the following imported goods may be retained by tho Customs on deposit, namely:—(l) Goods imported to be used temporarily for commercial purposes in New Zealand; (2) travellers' samples; (3) goods imported only for tho purpose of exhibition or demonstration or for trial in New Zealand; (4) goods sent on approval; (5) goods the personal property of bone fide tourists or temporary residents. Period For Exporting Goods (6) Goods temporarily imported for such Other purposes as may be approved by the comptroller. Provided that (a) goods are entered for home consumption on appropriate forms; (b) the importer shall satisfy the collector that the goods have been exported within six months from the date of making tho entry for them. In special cases the collector may extend the time to a period not exceeding twelve months from the date of the landing of the goods. Conditions under which refunds of sales tax may,be made on imported goods sold by an importer to a licensed wholesaler for resale by him or for use by him in the manufacture of goods for sale are set forth. In any case where a licensed manufacturing retailer is engaged in the manufacture of taxable goods as well as nontaxable goods the collector may grant a refund on any materials used in the manufacture of non-taxable goods by allowing the sale value of such materials or the sales tax paid thereon to be shown as a deduction in the appropriate monthly returns. Exemptions from Licences Several decisions under the Act have already been made by the Minister of Finance, and these were gazetted to-day. The following persons need not be licensed under the Act:— (a) Dentists making dentures or similar articles. (b) Opticians making or fitting spectacles or similar articles. (c) Persons engaged in bona fide repair, alteration or renovation of goods, provided that they carry on such work only. For the purposes of this paragraph a person shall be deemed to be engaged in bona fide repair, alteration or renovation of goods if he manufactures parts of those articles. In such cases the sales tax shall be payable on tho sale value of the materials used in the manufacture of such parts, and not on the sale value of those parts. A person shall not be deemed to be engaged in bona fide repair, alteration, or renovation of goods if he manufactures parts of articles and sells them to another person to be incorporated by that other person in such articles. Goods Not Exceeding £SOO a Year (d) A person manufacturing taxable goods who satisfies the collector that the total sale value of the taxable goods manufactured by him during the last financial year of his business did not exceed £SOO, and that the estimated value of tho taxable goods likely to be manufactured by him during the current financial year is not expected to exceed that sum; provided this exemption shall not apply to any person unless ho is tho holder of a certificate of exemption for the time being in force issued to him by a collector of sales tax upon application made in the form to be supplied by the collector. (e) A wholesaler who satisfies the collector that the total sale value of taxable goods sold by him during tho last financial year of his business did not exceed £SOO and that the estimated value of taxable goods likely to bo sold by him during tho current financial year is not expected to exceed that sum; provided this exemption shall not apply to any person Unless he is tho holder of a certificato ,of exomption. (f) Persons whose manufacturing operations consist only of one or more of the following:—(1) Breaking-down or reducing the strength of spirits; (2) manufacture of ice; (3) duplicating or typing of letters, etc.; (4) writing of showcards by hand; (5) developing and printing of photographs. Value for Customs Du'y The equivalent in New Zealand currency of tho value of goods for customs duty until further notice is to be determined by adding 25 por centum to such valuo for customs duty in respect of importations from all countries other than Australia. The value for customs duty of goods imported from Australia will be deemed to be in New Zealand currency. When, goods are sold by exporters abroad to retailers in New Zealand at a price delivered to the purchaser (including freight, insurance, exchange, duty, sales tax and other charges) and goods ar9 consigned to an agent in New Zealand of, the exporters, the agent paying duty and distributing the goods, sales tax will bo payable by such agent at the time of entry of tho goods for home consumption. When such goods have been so sold by exporters abroad to licensed wholesalers in New Zealand, sales tax will not be payable until the goods are sold or used by such wholesalers. Where taxable goods are sold by a wholesaler at a net cash price and an increase (known as a plusage) is added to tho prico on the understanding that this increase will not bo charged if, payment for tho goods is made on or beforo a date fixed in accordance with the usual commercial practice, tho sale value of such taxable goods will be tho sum of such net cash prico and the increase (or plusage). Where joinery is manufactured by a builder for use by him in the construction of buildings lie will bo legarded as a manufacturing retailer manufacturing such joinery' for use_ by him and will be required to be licensed and make returns and pay sales tax.