RE: [SLUG] NZ proposes GST on downloaded software.[ Here next ?]

[Adam W]

>
> Ummm, I don't think you understand how GST works. At least here in Oz,
> companies get to deduct the GST they have paid from the GST remittance
> they make to the government.
>
> So, the reality is that for companies, things do not cost 10% more, so
> there is no advantage to using free software.

only if you charge the same amount of GST to those you sell your
service/product to. If you sell less, you get hit with the GST...

e.g spend $1000 - get hit with $100 gst

only sell $100 worth of goods - $10 GST
meaning you get hit with $90 gst to pay or have paid.

*i think i am correct hehe *


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