Some rare services are exempt from GST and duty-free will offer items tax-free when landing in New Zealand from an international flight. Your GST return is due by the 28th of the month after the end of your taxable period. For 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. For example, if you claim on a television you supposedly bought for the business, but it lives in your living room at home, you’re not being honest, and you could be penalised if found out. 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.
How do I calculate and file my GST?
You will also be able to claim back the GST you incur on your business expenses. 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. With GST, there are things called ‘zero-rated supplies’, which aren’t subject to GST. To understand them all, it’s best to refer to the IRD web-page about zero-rated supplies. If you register for GST, you’re obliged to charge an extra 15% on top of your normal prices.
- You don’t have to charge GST on exports, which includes products you sell on the internet to overseas customers.
- Also, you are obligated to do GST returns on time, every time.
- If you’re an individual, the $60,000 threshold applies only to the income you earn that isn’t liable to PAYE.
- By using your end of year accounts to inform future business strategies, you can shift the exercise from frustrating compliance, to generating powerful insights.
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. 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 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. You must request and pay for an NZeTA before you travel to New Zealand.
Invoice guide
Because GST is a tax on all goods and services, it will be applied to almost everything you purchase in New Zealand. 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. When you buy something – goods or services – from an individual or company that’s GST registered, you will be paying GST. Everyone in New Zealand pays GST, even if they’re not registered for it.
So, if you’re a service business that charges $90 an hour, being registered for GST means you’ll have to charge $90 + 15% ($103.50 an hour). And if you’re a manufacturer who makes widgets that sell for $50, you need to add 15% GST. Part of the registration process involves choosing how often you’ll file your GST returns. In most cases, this means choosing two-monthly or six-monthly.
Non-resident businesses and GST
Afirmo makes it easier for you to balance the time you spend managing your business admin versus working in your business. If a purchase is for both business and personal use, such as a car or a laptop, you can claim GST for the business portion of use. The IRD has a web page about GST adjustments for assets that are shared between your personal life and business life. If you’re an individual, the $60,000 threshold applies only to the income you earn that isn’t liable to PAYE. For example, if you do $15,000 worth of freelancing on top of a salary that has PAYE applied to it, you don’t have to register for GST.
In other words, any entity i.e., business, trade, etc. that is registered under the government is liable to pay tax on any taxable activity with a turnover of $60,000 in the 12 months period. It is advisable for all business entities and companies to register no matter if it’s a small business or a big company. A GST-registered business can apply the GST NZ rate when buying and selling goods and services (including imported products) so they comply with tax returns and pay taxes to the what is a prepaid insurance expense government on the GST due dates.
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 have to (or want to) register for GST, you will first need to log into myIR, the IRD’s secure online services portal. 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 cannot submit your return, or pay on time penalties and interest may apply.
Filing Frequency for GST in New Zealand
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.