Travellers arriving on airlines or private craft are charged a Customs levy of NZ$16.59 and a biosecurity levy of NZ$16.92. For more information on what the IVL is, check out What You Need to Know About the New cost allocation in cost accounting Zealand ETA & Visitor Levy (NZeTA & IVL). The IVL is said to be “a way for travellers to contribute directly to the tourism infrastructure they use and to help protect and enhance the natural environment”.

  • Before you can work out your GST total, you need to calculate your sales and income and your purchases and expenses.
  • Also, remember how frequently you should file GST returns, and keep a good record of sales and purchases.
  • If you paid more GST than you collected, you can get a GST refund from us.
  • You cannot get an extension of time to file a GST return so you must file it on time.
  • If you’re not sure if an expense is truly business-related, it might be a good idea to talk to an accountant about eligible expenses for your line of work.

This rule does not apply to you if your taxable period ends on 31st March and 30th November. If your taxable period ends on the 31st March, then your due is on the 7th May, whereas the latter falls on 15th January. When buying products and services, some products’ pricing are exclusive of GST, whereas some other are GST-inclusive. Once you have reached the business turnover GST requirement, it’s time for you to register for a GST account. Before you start registering, charging, and collecting GST from your consumers, you need to check whether you meet the GST requirement stated below.

New Zealand GST

This guide includes everything you need to know about digital tax laws in New Zealand, whether your customers live in Auckland or Otago. 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.

  • The IVL costs NZ$35 and you will pay this either when you request your NZETA or when you apply for your Visitor Visa.
  • If you’re an individual, the $60,000 threshold applies only to the income you earn that isn’t liable to PAYE.
  • You can also charge GST (15%) on what you sell — this is collecting it on the government’s behalf.
  • 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.
  • It is crucial to keep accurate records of your receipts and invoices.
  • 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.

This tax is payable on most goods and services sold for domestic consumption in New Zealand, including certain imports. On occasion, you may pay GST to your suppliers when you buy supplies for your business activities. However, unlike regular consumers, you can claim this back if you have registered with Inland Revenue (IRD).

What’s GST?

You should seek advice from the IRD, your tax lawyer or accountant. Your business carries out a taxable activity when you supply (or intend to supply) goods or services for money (or another reward) on a continuous or regular basis. You collect GST from your customers on the sale of your goods or services.

You cannot get an extension of time to file a GST return so you must file it on time. The ruling coalition of New Zealand has confirmed that game developers within the country will maintain their 20% tax rebate. The tax has multiple offshoots like direct tax and indirect tax and goods and services tax (GST) comes in the second category. Please watch this informative video that the Inland Revenue Department has provided to explain requirements and procedures for New Zealand businesses and individuals. No matter which frequency you select, make sure you have proper invoices and documents to file GST.

GST, GST Return and Invoicing in New Zealand Using Deskera Books

Some people aspire to start their own business as they are passionate about building their own projects ever since they are young. Travellers departing on a cruise ship are charged a Customs levy of NZ$4.55. Travellers arriving on a cruise ship are charged a Customs levy of NZ$11.48 and a biosecurity levy of NZ$10.58. Travellers departing on airlines or private craft are charged a Customs levy of NZ$4.52.

NZ Tax Returns

It is one of the most progressive regimes in the world, with a wide base and limited exemptions. Submit your return and make any required payment by the due date. If you’ve been filing nil for a while, check whether you need to cancel your GST registration.

One of our other services can be viewed at GSTCalculator.co.nz which is the number one website in New… The GST filing date is due on the 28th of the following month after your taxable period. You can claim GST on your expenses for zero-rated supplies, whereas you cannot claim any expenses for purchases of exempt supplies. GST is the consumption tax throughout New Zealand, levied on almost everything sold in the country.

How to register for GST

If you’ve never done this before, you’ll start by registering for myIR. Registering for myIR requires you to have your IRD number handy, along with all the usual identification information. 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 your business is registered for GST, you can claim back the tax that paid on goods and services that you purchased to produce goods or services as part of your own business. You account for GST at the end of the taxable period that you make or receive the payment in. Keep a record of all your invoices and expense receipts (and keep these records for seven years).

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