Remember — you’re just collecting GST on behalf of the government, and you’ll need to pass on that GST when you do your return. Two-monthly means more paperwork but can be easier to keep track of. Six-monthly filing is only available if your turnover is less than $500,000 (although some exceptions apply), and it prepaid rent accounting might be good if you don’t have a lot of expenses or invoices. Some rare services are exempt from GST and duty-free will offer items tax-free when landing in New Zealand from an international flight. You don’t have to charge GST on exports, which includes products you sell on the internet to overseas customers.

Adding GST to your NET sales price (sales price excluding GST)

1. GST is a tax added to the price of most goods and services, including imports.
2. In providing taxable supplies, and once GST registered, businesses are obliged to follow various compliance rules, including record keeping.
3. Charging and collecting tax is only the first half of staying compliant.
4. Whether you’re a sole trader, contractor, in partnership or a company, as soon as you think you’ll earn more than $60,000 in 12 months, you must register for GST.

You can use any format or method to provide taxable supply information, if it contains the required information and is easily accessible by Inland Revenue. You can also use eInvoicing, which is a secure way of exchanging invoices electronically between businesses. If you’re registered for GST you have to include certain things in invoices for the goods and services you sell. But if it’s something worth $50 or less you can just issue a receipt instead. You can choose to file your GST returns monthly, two-monthly or six-monthly. Most small businesses choose to file two-monthly or six-monthly GST returns.

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While most goods and services sold in New Zealand have to include GST in their price, some can have a rate of 0% in certain circumstances and others are always exempt. But not all small businesses have to register for GST, and some goods and services don’t have GST added. If you’d like to know a bit more about the basics of GST in New Zealand, read on. If you collected more GST than you paid, you pay the balance to us when you file your GST return. Premiums paid by employers (including the self-employed) fund insurance for work-related accidents.

New Zealand GST rates and GST compliance

But you have to get a GST tax invoice for anything you claim over $50 and keep these records for seven years in case Inland Revenue audits your accounts. GST, aka goods and services tax, is collected on most goods and services sold in New Zealand. It’s included in the price paid and collected by the seller, then paid to Inland Revenue.

If you don’t deregister, you still have to keep filing returns.

Employers are liable to pay a residual claims levy and an employer levy. The employer levy payable is determined according to the industry or risk classification of the employer and the level of earnings of employees. 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. Yes, New Zealand has an annual sales registration threshold of NZD 60,000, based on local sales. GST is the consumption tax throughout New Zealand, levied on almost everything sold in the country.

Automate sales tax calculations, reporting and filing today to save time and reduce errors. A digital product is any product that’s stored, delivered, and used in an electronic format. These are goods or services that the customer receives via email, by downloading them from the Internet, or through logging into a website. Whether you’re a sole trader, contractor, in partnership or a company, as soon as you think you’ll earn more than $60,000 in 12 months, you must register for GST. You may be charged penalties if you don’t register when you need to.

You pay a 15% goods and services tax (GST) on most of your purchases in New Zealand. GST is a tax added to the price of most goods and services, including imports. This article has been reviewed and approved by Robin, who is the co-founder of NZ Pocket Guide. With more than 15 years of https://www.business-accounting.net/when-should-a-product-warranty-liability-be-recorded/ experience in the New Zealand tourism industry, Robin has co-founded three influential tourism businesses and five additional travel guides for South Pacific nations. He is an expert in New Zealand travel and has tested over 600 activities and 300+ accommodations across the country.

You may not realise it, but an arrival and departure tax is added to the cost of your flight or cruise ticket to and from New Zealand. The arrival and departure tax for New Zealand, also known as “border processing levies”, is a fee to pay for the Customs and Biosecurity procedures you go through upon arrival and departure. There is no upfront cost to pay for these fees, they are included in the cost of your travel ticket. There are two “tourist taxes” that visitors are expected to pay, one is mandatory for all visitors while the other depends on what type of visa you are on. No, as a visitor, you cannot claim GST back once you have paid for it. There are no tax refund schemes on GST for visitors to New Zealand.

If you paid more GST than you collected, you can get a GST refund from us. A statutory-based scheme of accident insurance is funded in part by premiums payable by employers and employees. If you cannot submit your return, or pay on https://www.quick-bookkeeping.net/ time penalties and interest may apply. When you are registered you add GST to your prices and pass the GST on to us. Non-resident businesses are not required to appoint a local fiscal representative for GST purposes in New Zealand.

If your accounting software allows you to file your return directly with us, you can do this. If you regularly sell goods or services you might need to charge GST to your customers. Returns and payments are due to the IRD by the 28th of the month following the end of the return period. If your customer is a fellow business, and they’ve provided a valid GST number, then adding and collecting tax isn’t necessary!

However, they also get to claim their GST expenses even though they haven’t paid them. Some business that have high upfront purchasers/costs but take longer to receive payment may also benefit. If you provide a listed service such as ride-sharing and ride-hailing, food and beverage delivery, or short-stay and visitor accommodation there are changes from 1 April 2024. Goods and services tax (GST) is added to the price of most products and services.