gst in new zealand

However, it can apply if the seller is GST registered and the sale is part of the seller’s business activity. GST can also apply if the seller has a pattern of buying and selling residential properties, including the ones they live in. It is usually charged at a rate of 15% by GST-registered persons and is added to the price of most goods and services supplied in New Zealand, including most imported goods and services. For GST-registered businesses, a GST return general ledger is due by the 28th of the month after the end of the taxable period.

Supplying remote services

Some rare services are exempt from GST and duty-free will offer items tax-free when landing in New Zealand from an international flight. The general invoice rule is that the tax point is the earlier of the date of the supply or the invoice date. Refunds in New Zealand will not be paid if they’re to be used to pay any other taxes owed.

Returns and payments are due to the IRD by the 28th of the month following the end of the return period. New Zealand’s GST system is straightforward, with a standard New Zealand GST rate of 15% for almost all goods and services, a reduced rate of 9%, and a 0% GST rate. Plus, for more information on work taxes, check out our guide to the New Zealand Work Tax System.

What is the IVL Tax?

gst in new zealand

So here are some tips to help you identify strategies that help to maintain productivity. GST was introduced in conjunction with compensating changes to personal income tax rates and removal of many excise taxes on imported goods. Additional information may be required based on the value of the supplied goods or services.

The process is relatively straightforward, and businesses will receive a New Zealand GST number upon successful registration. If you have worked in New Zealand as part of a working holiday visa, student visa, work visa or for whatever reason, you are entitled to a tax return (tax refund) on some of the taxes that were deducted from your wages. You must request and pay for an NZeTA before you travel to New Zealand. There are two ways of paying for the NZeTA and IVL, either through an Immigration New Zealand app or their website.

  1. The obligation to register for GST arises when a business carries out a taxable activity and their turnover exceeds NZ$60,000 in 12 consecutive months or this threshold is expected to be reached in the next 12 months.
  2. To register for New Zealand GST, businesses can apply online through the Inland Revenue Department (IRD) website.
  3. If a business (’principal’) carries out a supply to the customer via an agent, it is regarded as a direct sale between the principal and the customer.

The IVL applies to all visitors with a passport from either a visa-waiver country or a country where you have to apply for a visitor visa to visit New Zealand. The IVL costs NZ$35 and you will pay this either when you request your NZETA or when you apply for your Visitor Visa. Visa-waiver countries for New Zealand are listed in What You Need to Know About the New Zealand ETA & Visitor Levy. There are two “tourist taxes” that visitors are expected to pay, one is mandatory for all visitors while the other depends on what type of visa you are on. 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.

How long does it take to register for VAT?

Travellers departing on airlines or private craft are charged a Customs levy of NZ$4.52. Travellers arriving on airlines or private craft are charged a Customs levy of NZ$16.59 and a biosecurity levy of NZ$16.92. The IVL is said to be “a way for travellers to contribute directly to the tourism infrastructure they use american institute of public accountants aicpa and to help protect and enhance the natural environment”. 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.

Zero-rated supplies are goods or services that would normally have to include GST, but in certain circumstances the rate is 0% rather than the usual 15%. 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.

The cost is NZ$9 through the mobile app and NZ$12 through the website. If a business realises that, based on the previously stated registration requirements, it would not have been mandatory for it to register, it may cancel its registration. GST is how far back can the irs audit you new 2021 not included in an unconditional gift, which means a voluntary payment that’s made to a non-profit organisation and has no goods or services benefit to the giver or payer. 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.