A business must provide receipts to buyers if they’ve been charged GST. Receipts can be used to show the New Zealand authorities that GST has been charged and paid. Businesses operating in New Zealand must register for GST if they have a turnover of more than NZD 60,000 in the previous 12 months, or expect to exceed this threshold within the next 12 months. Businesses operating in New Zealand that add GST to the price of their goods or services must also register for GST.
GST threshold
- Afirmo makes it easier for you to balance the time you spend managing your business admin versus working in your business.
- GST is a tax added to the price of most goods and services, including imports.
- Requested and approved refunds are paid into a business’s bank account within 15 days.
- But if you only have a few transactions a month you might prefer a longer frequency.
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. They will need their business industry classification (BIC) code, and know which taxable period applies to them and which accounting accounting basis they want. GST is a tax added to the price of most goods and services, including imports.
This is pretty rare but still happens in some trade, wholesale retailers and services, so keep an eye out. We also go over whether it is necessary to tip in New Zealand, as well as advice for international travellers paying taxes for working in New Zealand. If you’re claiming GST on business-related expenses you should always check the receipt or invoice to make sure GST was included before filing your return. Once registered for GST, businesses must charge GST to their customers and pay anything that is owed to the New Zealand Inland Revenue.
A New Zealand Tax Guide for Travellers
That includes food, medication, equipment, going to the hairdressers, the doctors and even the activities you are likely to do as a traveller in New Zealand. Some rare services are exempt from GST and duty-free will offer items tax-free when landing in New Zealand from an international flight. If you think the nature of your goods or services means they can be sold without charging GST, it’s important to get professional advice to make sure. In the meantime, here‘s a brief summary of the main reasons GST may not be included in certain goods or services. 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.
This article has been reviewed and approved by Robin, who is the co-founder of NZ Pocket Guide. With more than 15 years of experience in the New Zealand tourism industry, Robin has co-founded three influential tourism businesses accounts payable definition 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. 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. No, as a visitor, you cannot claim GST back once you have paid for it. Because GST is a tax on all goods and services, it will be applied to almost everything you purchase in New Zealand.
The Goods and Services Tax (GST) in New Zealand
But if you only have a few transactions a month you might prefer a longer frequency. Non-resident businesses that sell low-value imported goods — a physical good valued at NZD 1,000 or less — in New Zealand may need to register for, collect, and return GST. Imported goods valued over NZD 1,000 have GST and customs duties charged at the border by the New Zealand Customs Service.
Businesses must also file GST returns at a frequency determined by its sales figures. Once you’re registered for GST, you’ll need to file regular GST returns and pay GST on your taxable activities. Late filing or payments can result in penalties and interest charges. The IRD imposes a 1% monthly penalty on unpaid amounts and interest charges on outstanding balances. Missing a New Zealand GST return deadline will result in how to prepare a cash flow statement a fine of NZ$250.
No one wants to hear about the extra fees or taxes they might have to pay anywhere in the world. Unfortunately for tourists, there are quite a few taxes to juggle for visiting New Zealand. As many taxes are included in the price, however, you’ll hardly notice that you’re paying the activity method depreciation calculator extra percentage. Additionally, there are a couple of visitor taxes for New Zealand, such as the NZETA and IVL, that you will have to pay an upfront cost for.
