New Zealand GST Guide

When the product arrives, New Zealand Customs will be assessing New Zealand GST at the rate of 15%. Just when you think you are nearly there you may find yourself having to start again. Registering for New Zealand GST in order to claim back GST imposed by customs can be a different process from claiming New Zealand GST back in general. No one helps more small Australian businesses with New Zealand GST than us!

You simply charge your New Zealand customers and pass that on to Inland Revenue on a quarterly basis. That is because the New Zealand GST charged on the consignment is likely to be uneconomic to collect. Before registering for New Zealand GST, it’s important to determine that you actually qualify for GST registration. However, if it is your intention to register as an Australian company, you should first read an article we wrote about the double taxation that will almost certainly occur. Once you’ve completed market research into your initial ideas around what you might offer as a freelancer, and who might need your services, it’s time to settle on some detailed definitions. To make it quick and easy to add or subtract GST from a price, we created the handy GST calculator below.

New Zealand GST Reassessments

From 1 December 2019 overseas businesses that sell low value goods to consumers in New Zealand may need to register for, collect and return GST. If you don’t think you’ll turn over that much, it’s up to you whether or not to register. One benefit of voluntary registration is you might be able to claim a GST refund, eg if you have a lot of expenses but not much income.

If you have paid out more GST than you’ve collected, you may receive a refund. The short-form alternate rate applies at a rate of 49.25% to all non-attributed benefits and a rate of 63.93% to all attributed benefits. In general, a benefit is attributable to an individual if it is principally assigned to, used, or available for use by that employee. However, there are other specific attribution rules to consider, such as the attribution rules for unclassified benefits. In order to register for New Zealand GST, you will need a New Zealand tax file number (called an IRD number).

Supplying Remote (Online or Digital) Services Into New Zealand

As a non-resident, you are subject to New Zealand’s Anti-Money Laundering and Counterterrorism Financing legislation. Therefore, before you will be allocated an IRD number, you will need a New Zealand bank account. And New Zealand banks are being very hesitant in opening up a bank account for non-residents because of the background checking they are required to do under that legislation.

And that is exactly why you should be contacting us in the first instance. We can usually protect you from double taxation and register you for all relevant tax types including New Zealand GST. If you are supplying online services to the New Zealand market, there are times when you will need to register for GST.

We provide services to any type of industry, a few are listed below.

Before you can work out your GST total, you need to calculate your sales and income and your purchases and expenses. You cannot get an extension of time to file a GST return so you must file it on time. Excise duty is levied, in addition to GST, on alcoholic beverages (e.g. wines, beers, spirits), tobacco products, and certain fuels (e.g. compressed natural gas, gasoline). The excise duties are levied item-by-item at rates that vary considerably. You might struggle to see where you sit with GST if you sell by auction or lay-by, sell secondhand goods, or lease goods. In these cases, it’s worth checking out the IRD page on special supplies.

• 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.
• They may be contacting your customer to advise there is a shipment awaiting collection and it will be released once the New Zealand GST is paid.
• This then requires them to charge GST on relevant supplies, complete periodic GST returns and remit collected taxes.
• 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.guide provides GST calculators for India, Canada, New Zeland, Australia, Singalore.

The calculations in the manual patterns are very difficult, so proper related software can be used for it. New Zealand does not have the equivalent of a quarterly BAS statement. In fact, all New Zealand taxes are treated separately with each having its own return filing date and tax payment date. It’s one of the reasons we suggest that any Australian business grappling with New Zealand tax should download our free NZTAX APP so you can receive a reminder when your returns are due. The category was introduced to encourage overseas businesses who have no connection with New Zealand, to consider New Zealand as an attractive destination to hold a conference or something similar. So that the GST content was not a deterrent as a cost factor, the New Zealand government decided to allow a refund in these circumstances.

New Zealand GST Calculator – You can now easily calculate GST for New Zealand

If you’re going to earn more than $60,000 a year as a self-employed person or company, you have to register for GST. The $60,000 threshold for self-employed people doesn’t include any PAYE income you might earn through wages or a salary from an employer. Providing services to New Zealand businesses generally does not require a GST registration. If you collected more GST than you paid, you pay the balance to us when you file your GST return.

Getting things are set up correctly for New Zealand GST in the first place is always the cheapest way to go. And, as we are the only firm that specialises in helping small Australian-controlled businesses to organise their New Zealand tax affairs, we are probably the best place to start. Under this provision you will have no ability to claim back any New Zealand GST.

Supplying goods or services in New Zealand

Some contractors are eligible to apply for an exemption or a reduced rate. You are required to register for GST in New Zealand if your taxable supplies are more than NZD $60,000 in a 12 month period. You can still background check register for GST even if your taxable supplies are less then NZD $60,000 providing you meet certain criteria. When you’re registered for GST, you can claim back the GST you paid on business-related expenses.