GST goods and services tax

Additionally, there are a couple of visitor taxes for New Zealand, such as the NZETA and IVL, for which you will have to pay an upfront cost. We go through it all in this New Zealand tax guide for travellers. You can claim GST back from the IRD when you’ve purchased goods or services for your business. You can also claim GST back on bad debts where you have already paid the related GST to the IRD, but this will only apply if you are paying GST on an invoice basis, not a payments basis. This happens when the GST paid on eligible expenses is greater than the GST collected from sales. While it might feel like a good thing, you don’t really want this to happen too often; it’s an indicator that your business is going backwards.

GST rate

If you need to make a payment, you can pay by direct debit, credit card or debit card now. If you’ve been filing nil for a while, check whether you need to cancel your GST registration. Persons or entities with annual revenue less than $60,000 do not have to register for GST.6 This threshold has increased three times since the introduction of GST in 1986. If you’re unsure about whether your business needs to register, you can contact us or your tax agent. You can read about when a non-resident is deemed to make a taxable supply in New Zealand in section 8(2) to (4) of the Goods and Services Tax Act 1985. Finally, for more essential advice for your trip, don’t forget to check out the 31 Tips for Travelling in New Zealand.

1. 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.
2. It is advisable for all business entities and companies to register no matter if it’s a small business or a big company.
3. You’ll also have to enter a BIC (business industry classification) code.
4. If you’ve never done this before, you’ll start by registering for myIR.

What is a GST return?

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. A limited number of duty-free stores outside of the airports do this, which we outline in our complete guide to Duty-Free Shopping in New Zealand. Your GST return is due by the 28th of the month after the end of your taxable period. For objectivity principle the period ending 31 March, GST returns are due by 7 May. And for returns related to the period ending 30 November, returns are due by 15 January.

Also, remember how frequently you should file GST returns, and keep a good record of sales and purchases. The process of  GST New Zealand is fairly easy to understand and follow through so don’t hesitate and build your business in good practice and legal grounding. GST stands for Goods and Services Tax (GST) and as per the GST New Zealand rules and regulations since petty cash definition 2010, fifteen percent (15%) is added to goods and services as tax.

Open an NZ Bank Account Without an Address + 6 More Banking Tips

For example, if you want an item to cost $99.95, your ex-GST price is $86.91. There are online GST calculators to help with establishing price points. If you need more help or have questions about the information or services on this page, contact the following agency. Access Xero features for 30 days, then decide which plan best suits your business. You can automate and file GST online using software like Xero. If you need to, you can attach correspondence or receipts to the return before you submit it.

You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided. Because businesses claim back their input GST, the GST inclusive price is usually irrelevant for business purchasing decisions, other than in relation to cash flow issues. Consequently, wholesalers often state prices exclusive of GST, but must collect the full, GST-inclusive price when they make the sale and account to the IRD for the multi-step income statement vs single step GST so collected. It is a tax for people who buy and sell goods and services. You might need to register for GST if you sell goods or services.

Again, see the guide mentioned above for instructions on how to pay. 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 cannot submit your return, or pay on time penalties and interest may apply. GST was introduced in conjunction with compensating changes to personal income tax rates and removal of many excise taxes on imported goods.

He is an expert in New Zealand travel and has tested over 600 activities and 300+ accommodations across the country. You must request and pay for an NZeTA before you travel to New Zealand. There are two ways of paying for the NZeTA and IVL, either through an Immigration New Zealand app or their website. The cost is NZ$17 through the mobile app and NZ$23 through the website.