New Zealand Goods and services tax GST Rates

Bookkeeping

New Zealand Goods and services tax GST Rates

Oct 19 2021 | by Author Pathfinder

new zealand gst

If you need more help or have questions about the information or services on this page, contact the following agency. Prices shown in shops and online include GST unless they say otherwise — the GST part of what you’ve paid is printed on your receipts. GST was introduced in conjunction with compensating changes to personal income tax rates and removal of many excise taxes on imported goods. ” Check out our explanation of what a digital product is exactly.

new zealand gst

Zero-rated supplies still have to be recorded on your GST returns. There are certain items and categories that are exempt from GST — we call them zero-rated goods and services. GST credits are a way to claim back some of the GST that you’ve paid and redirect that money back into your own business — more on this later, though. When you are registered you add GST to your prices and pass the GST on to us. If you need to, you can attach correspondence or receipts to the return before you submit it.

Payment or refund

No matter where you live or where your online business is based — if you have customers in New Zealand, you gotta follow New Zealander GST rules. This guide includes everything you need to know about digital tax laws in New Zealand, whether your customers live in Auckland or Otago. This will be reflected in the sales price of your products or services sold to both consumers and businesses. On 1 October 2016, the taxation of digital (‘remote’) services supplied by offshore companies (non-New Zealand) to consumers based in New Zealand changed. When you make a taxable sale of more than $50.00 (including GST), your GST-registered customers will need a tax invoice from you to be able to claim GST credits for their own businesses. As a GST-registered business, issuing tax invoices, collecting GST from customers and sending information to IR can be a bit of a handful.

You pay a 15% goods and services tax (GST) on most of your purchases in New Zealand.
With GST being applied to so many goods, most New Zealand small businesses will likely have some GST obligations.
You will generally only account for GST on your sales in your GST returns.
You can find more information about which items are GST-free here.

Fill out the return details

Tax identification numbers can be verified with the Inland Revenue, and will follow a certain format. The GST registration number format is Taxable persons use tax registration numbers (IRD number) for GST purposes in the format xx-xxx-xxx; effective from 2008, nine-digit numbers are issued single step vs multi step income statement to new GST-registered persons. You might need to register for GST if you sell goods or services. Once you’re registered for taxes, you’re expected to charge 15% GST on every sale to a New Zealander resident. New Zealand’s consumption tax is called the Goods and services tax (GST),which was introduced in October 1986. You will need to charge GST on your supplies of goods and services and pay it to Inland Revenue.

Product

If you’re unsure about whether your business needs to register, you can contact us or your tax agent. Find out more about low value imported goods or what to do if you get charged GST twice. Submit your return and make any required payment by the due date. If your accounting software allows you to file your return directly with us, you uncollectible accounts receivable definition and accounting can do this.

In New Zealand, foreign businesses are expected to file tax returns every quarter. You have 28 tax bracket definition days to file and pay after the end of each period. Zero-rated goods and services include products or services from New Zealand that are sold overseas, e.g. exports or some land transactions. Even though your business may pay GST on items, or add GST onto your own goods and services, you may qualify for GST credits for some transactions. Charging and collecting tax is only the first half of staying compliant. The second, and equally important, half is filing returns and paying whatever you might owe to the government.

If you’re a non-resident and carry on any activity such as a business which involves supplying goods or services in New Zealand over NZ$60,000 a year, you may be required to register for GST. If you cannot submit your return, or pay on time penalties and interest may apply. You pay a 15% goods and services tax (GST) on most of your purchases in New Zealand. Well, the threshold amount refers to your total sales in the country, during any 12-month period. This can be a calculation of sales in the last twelve months, or a prediction of sales in the next twelve months — any rolling year-long period, past or future. The period you choose is known as your taxable period or filing frequency.