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![UsHepburns](themes/aaAle/images/interface/profile-pic-placeholder.47cf740a.png)
Hi,
What is your reimbursement rate ($/km) for a Ford Territory Ghia (2010) please?
Thanks.
![Anon](/assets/Uploads/_resampled/ScaleWidthWyI3NSJd/CMSThumbnail-SetWidth75-aa-avatar.png?m=1518003100)
The Ford Territory Ghia running costs is 107.7cents/km.
![quidnunc](themes/aaAle/images/interface/profile-pic-placeholder.47cf740a.png)
Just a wee query - are the AA/IRD mileage allowance rates (currently 77c per km) GST-exclusive or GST-inclusive? I always thought these were GST-inclusive (as the components used in the calculations all seem to be GST-inclusive), but the Ministry of Justice website says they are GST-exclusive. They've now confused me (which isn't dificult at my age <grin>)..
And the answer is ..?
![AScottAA](themes/aaAle/images/interface/profile-pic-placeholder.47cf740a.png)
In simple terms the AA/IRD rate is exempt of GST because the calculation includes an amount for Depreciation. Depreciation is exempt for GST purposes therefore not all components are GST inclusive.
Also the rate is an estimate/approximation and as such does not meet the requirements in the GST act for a GST deductible expense.
![quidnunc](themes/aaAle/images/interface/profile-pic-placeholder.47cf740a.png)
So if I, as a GST trader, have to on-charge mileage (which I have reimbursed my staff and who are working on a client's job) to my client, then I would add GST on top of the mileage cost (of 77c), and then the client would deduct it, so that the GST effect is neutral with respect to IRD.
Is my logic correct?
![tomfiz14](themes/aaAle/images/interface/profile-pic-placeholder.47cf740a.png)
What is the staff reimbursement rate for a Toyota Hilux diesel per kilometre?
![pjcw1973](themes/aaAle/images/interface/profile-pic-placeholder.47cf740a.png)
Hi. I am a chartered accountant (who specialises in Tax)
Mileage rates do not have ANY gst on them.
You can't claim GST on a mileage rate.
Cheers
Peter
peter@oktillion.co.nz
![pjcw1973](themes/aaAle/images/interface/profile-pic-placeholder.47cf740a.png)
I wouldn't add GST on top of the mileage rate to begin with. It is exempt from GST. I am sure your customers would rather not pay an extra 15% even if they could claim it back later on.
Cheers
Peter