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If your turnover falls below $60,000 a year and you don’t want to keep charging GST, or if you close down your business, you need to let Inland Revenue know — call or send a message via myIR. You’ll need to let Inland Revenue know the date you intend to stop charging GST. GST is usually payable on goods and services held at the time you cancel your registration.

Yes, the GST Calculator New Zealand can be used for both adding GST to an amount and subtracting GST from an amount. This makes it a versatile tool for individuals and businesses dealing with various transactions. If you are required to register for GST and fail to do so, you may be liable for penalties and interest on any GST that should have been paid. Our standard fee to prepare and lodge a New Zealand GST return is just $250 +GST for a monthly or two monthly GST return or $350 +GST for a six monthly GST return. If you are already registered for New Zealand GST and need to prepare and lodge a GST return, we can certainly help. The ability to claim a GST refund from New Zealand under this category only relates to companies who are not doing business in New Zealand.

While the Calculator GST NZ is primarily designed for single transactions, users can easily use it multiple times for different transactions to calculate GST accurately for each one. Yes, the GST NZ Calculator is programmed with the current GST rate in New Zealand, ensuring accurate calculations. However, it’s always good practice to double-check the official government website for any recent changes in the GST rate.

Further, even if you exceed this threshold, you may be exempt if your business provides financial services, donated products and services and private home rentals. Your taxable period (also known as filing frequency) refers to how often you need to file what are off-balance sheet obs items your GST returns with IRD. Reduced rate GST (9%) applies to hotel accommodation on a long-term basis (longer than 4 weeks). Zero rate GST (0%) applies to exports and related services; financial services; land transactions; international transportation.

New Zealand Arrival and Departure Tax

The accounting basis is a framework to figure out which activities should be included in the GST filing period. It means they can claim GST on materials and services they use for their business. If you decide to go this way, you need to be aware that your prices to customers must include GST. You are not required to register for GST if your business turnover is less than $60,000 per year.

• If you file a GST return for more than one branch and division, enter total sales and income (Box 5) for all other branches, otherwise enter zero for this section.
• Providing services to New Zealand businesses generally does not require a GST registration.
• Here is an example of how to calculate GST in NZ or use the GST calculator nz.
• Otherwise, do not change the filing frequency without any approval.
• First of all, businesses must bear in mind how GST is calculated i.e., documentation that shows transaction details during a GST period and have everything ready by GST return dates.

If you are wanting to add GST, then the base would be the price without GST… When filing a GST return, you have to ensure that you make your payment as well. If you fail to do so, late payment and submission will incur some penalty and interest. You are Joe’s regular customer, and you have purchased a pair of sneakers at $74.75 in total (the price is GST-inclusive).

Shopping Duty-Free: How to Avoid Paying GST in New Zealand

He is passionate about sharing those experiences and advice on NZ Pocket Guide and its YouTube channel. Robin is also the co-founder of several other South Pacific travel guides. Finally, for more essential advice for your trip, don’t forget to check out the 31 Tips for Travelling in New Zealand. 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.

GST In New Zealand (NZ) and who pays GST in NZ

If your request is approved, IRD will contact you with a new taxable period. Otherwise, do not change the filing frequency without any approval. Charging and collecting tax is only the first half of staying compliant.

How to Register with Inland Revenue

This happens when the GST paid on eligible expenses is greater than the GST collected from sales. 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. If you register for GST, you’re obliged to charge an extra 15% on top of your normal prices. 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. Only businesses with sales of more than $24 million have to file GST returns every month. If you earn over $500,000 per year, you can’t choose the six-monthly filing option. 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. This essentially enables you to pay the GST exclusive amount on products and services, rather than the inclusive price paid by ordinary consumers.

As per the regulations, any business, trade, and company selling and buying goods and services must be registered for GST in New Zealand. It is applicable if and when the revenue of a business or company in the previous 12 months is $60,000 or the anticipated revenue is $60,000. Generally, the displayed price on products and services in New Zealand is GST inclusive i.e., a 15% tax is added to the product price. GST can be filed on a monthly basis, two-monthly basis, or six months basis and to account for sales and purchases payment receipts, invoices and a mix of the two can be used. GST New Zealand can be filed at the inland revenue department either using a paper form, via an online portal, or accounting software. Goods and services tax (GST) is added to the price of most products and services.

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.