We go through it all in this New Zealand tax guide for travellers. If you have a business with a turnover of NZD 60,000 or more in a 12-month period, you are required to register for GST in New Zealand. Some goods and services that are exempt from GST in New Zealand include financial services, residential rents, and some government charges. If you file a GST return for more than one branch and division, enter total sales and income (Box 5) for all other branches, otherwise enter zero for this section. You can claim GST on your expenses for zero-rated supplies, whereas you cannot claim any expenses for purchases of exempt supplies. Zero-rated products and services are subject to 0% GST, whereas the exempt supplies are GST-free.
- For simplicity, let’s consider a base value of $100 in our examples.
- So, you want to know the allocation of GST amount and price of the sneaker exclusive GST, but you do not know how to do so.
- You must request and pay for an NZeTA before you travel to New Zealand.
- The most asked questions from customers about online shopping and duty.
One important thing you must not forget is the payee code, which shows the type of tax the payment is for. When filing a GST return, you have to ensure that you make your payment as well. If you fail to do so, late payment and submission will incur some penalty and interest. There are three types of filing frequency in New Zealand, and the options available are monthly, two-monthly, or six-monthly.
Do business online
Your GST return and payment due will be on the 28th of the following month, on 28th August. Part of the registration process involves choosing whether you’ll file GST returns every month, two months or every six months. If your turnover is or not likely to be more than $500,000, you can apply to file GST returns on a 6-monthly basis.
- Zero rate GST (0%) applies to exports and related services; financial services; land transactions; international transportation.
- Yes, the GST NZ Calculator is programmed with the current GST rate in New Zealand, ensuring accurate calculations.
- Afirmo makes it easier for you to balance the time you spend managing your business admin versus working in your business.
- In providing taxable supplies, and once GST registered, businesses are obliged to follow various compliance rules, including record keeping.
- If you’re under the threshold, you need to decide if the benefits outweigh the cons.
Plus, for more information on work taxes, check out our guide to the New Zealand Work Tax System. The IVL applies to all visitors with a passport from either a visa-waiver country or a country where you have to apply for a visitor visa to visit New Zealand. The IVL costs NZ$35 and you will pay this either when you request your NZETA or when you apply for your Visitor Visa.
International indirect tax guide
Yes, the GST Calculator New Zealand can be used for both adding GST to an amount and subtracting GST from an amount. This makes it a versatile tool for individuals and businesses dealing with various transactions. When you buy something – online shopping or in person while on holiday or on business – from another country and bring it here, you might have to pay Customs charges and duties.
What are the items that I can claim GST?
Yes, although non-resident businesses are only able to register for GST in New Zealand if their taxable supplies are generated when the time of supply occurs within New Zealand. Exceptions audit evidence and audit testing to this are noted elsewhere in this summary (eg remote sellers of goods and services). A person can register on a voluntary basis even if the registration limit has not been reached.
Goods and Services Tax (New Zealand)
Also, you can specify your customers’ location and charge the correct tax rate using the tax configuration feature in the system. Otherwise you have to file GST103 Report, if you’re liable for provisional tax. During the GST registration process, you are required to fill in the business industry classification code (BIC). Once you have reached the business turnover GST requirement, it’s time for you to register for a GST account. Exempt supplies are not subject to GST in New Zealand, meaning you do not need to include this in your GST return.
If you have paid out more GST than you’ve collected, you may receive a refund. The Goods and Services Tax (GST) is a value-added tax in New Zealand that is applied to most goods and services at a rate of 15%. To calculate the GST amount this specific formula is used which takes into account the GST rate and the total amount. Here is an example of how to calculate GST in NZ or use the GST calculator nz. The same applies if your taxable period ending falls on 31st July.
All GST returns have to be submitted by the 28th day of the following month, together with any payment. The exceptions to this rule are where the period ends 30 November, or 31 March. Returns and payments for these periods are due 15 January and 7 May respectively. If the due date falls on a weekend or public holiday the due date is pushed back to the next business day. Once you’re registered for GST, you’ll need to file regular GST returns and pay GST on your taxable activities.