From sole traders who need simple solutions to small businesses looking to grow. 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. Make sure we have your correct contact details, bank account and income information. 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 a non-resident business that sells low value goods such as clothing, cosmetics and electronic items to consumers in New Zealand, you may need to register for, collect and return GST. That new piece of GST legislation mirrors similar rules governing the supply of digital services introduced in the European Union (EU) in January 2015 on the taxation of digital goods. Automate sales tax calculations, reporting and filing today to save time and reduce errors.
How do you work out the GST amount of a price?
Just follow our instructions on how target costing and selling price to register for GST in New Zealand. This guide breaks down how to write a business plan and what you need to think about to make your business plan as persuasive as possible. You can find more information about which items are GST-free here. With GST being applied to so many goods, most New Zealand small businesses will likely have some GST obligations.
New Zealand GST registration number format
You will also be able to claim back the GST you incur on your business expenses. If you regularly sell goods or services you might need to charge GST to your online bookkeeping services for small businesses customers. 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 GST so collected.
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.
Submit the return
Many countries allow tourists, and others making purchases for export, to receive a VAT refund on exiting the country (or make purchases VAT free). While we don’t have data on the New Zealand VAT refund program, more info can be obtained from the Inland Revenue. Most New Zealanders will immediately recognise the Goods and Services Tax (GST) as the 15 percent tax slapped onto most goods and services provided in New Zealand. Discover how to register, calculate and report on the Goods and Services Tax (GST) and how the GST might affect you personally, particularly as a small business owner.
- Goods and services tax (GST) is New Zealand’s consumption tax.
- If you’re unsure about whether your business needs to register, you can contact us or your tax agent.
- If you’re a non-resident business that sells low value goods such as clothing, cosmetics and electronic items to consumers in New Zealand, you may need to register for, collect and return GST.
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 the cost of goods manufactured schedule 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.
GST is a tax added to the price of most goods and services, including imports. No, you don’t need a representative to handle your taxes in New Zealand. Some tentative foreign business owners may hire a tax representative for peace of mind. Taxes can be an intimidating and confusing topic, especially in a foreign language! Yes, New Zealand has an annual sales registration threshold of NZD 60,000, based on local sales. You will generally only account for GST on your sales in your GST returns.