Yes, non-resident suppliers of remote services must register, charge and account for GST on supplies made to New Zealand residents. The same $60,000 of sales in any 12-month period registration threshold applies. The remote seller GST regime minimizes compliance issues (eg no tax invoices are required to be issued).

• 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.
• Some goods and services have 0% GST charge, these are called zero-rated, typically provided to overseas people.
• Once you have your account set-up, you can make payment anytime, anywhere.
• Also, you can specify your customers’ location and charge the correct tax rate using the tax configuration feature in the system.

In most cases we are able to help clients avoid the difficult parts of the process and have their New Zealand GST registration completed within a matter of days. No one gets NZ GST registrations for Australian-controlled businesses faster than us. 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. Some rare services are exempt from GST and duty-free will offer items tax-free when landing in New Zealand from an international flight.

New Zealand GST compliance

In the third week, she worked for $85 + GST per hour for 40 hours, and in the last week, she worked for $90 + GST for 20 hours. In the example you see below, we have started with a base figure of $100. From that point, all we have to do is add the new found GST content ($15) to the base figure ($100) to get the new GST inclusive figure of $115. However, depending upon the types of supplies being made, the logistical considerations and the volume of transactions, non-residents may engage with a local agent to facilitate the supply. Specific GST provisions exist regarding transactions involving agents that should be considered before making any decisions. A person cannot be treated as a member of more than one GST group at a time.

• Make sure not to calculate 15% from the total price – this will be incorrect.
• Late filing penalties are imposed if GST returns are not lodged by the due date.
• GST on sales to New Zealand customers is paid to New Zealand’s Inland Revenue but no GST on costs (input tax) may be claimed.
• 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.

New Zealand Customs often batches orders together, so even if it is in separate boxes, you will be charged GST if you receive $400 or more of products in one day. Special rules apply for electronic marketplaces such as app stores that act as sales agents for underlying suppliers (eg independent app developers). Registered marketplaces must charge GST on sales to New Zealand customers and return it to New Zealand’s Inland Revenue.

How do you work out the GST amount of a price?

You will be responsible for charging New Zealand consumers GST of 15% and accounting for that to Inland Revenue. You are required to register for GST in New Zealand if your taxable supplies are more than NZD $60,000 in a 12 month period. You can still register for GST even if your taxable supplies are less then NZD $60,000 providing you meet certain criteria. Some goods and services have 0% GST charge, these are called zero-rated, typically provided to overseas people.

What is the GST?

GST is charged on the value of the importation, including any customs duty, freight and insurance.It is important to note the interaction between GST and customs duty. Customs duty is levied upon the importation of certain goods into New Zealand. Unlike other indirect taxes, such as GST, once duty has been key steps for auditing the legal department paid it is not recoverable by the importer. She collected $2,850 in GST through her design services but also paid $330 in GST on business-related expenses. This means, for her May operations, Sarah will need to remit $2,520 to the New Zealand Inland Revenue Department (IRD) as part of her GST return.

Calculating GST in New Zealand remains straightforward despite the rate change. The calculation is based on the ‘base’ value – the price excluding GST for adding GST, or the total price including GST for determining the tax component. For simplicity, let’s consider a base value of $100 in our examples. This approach helps in understanding the process of calculating GST for different scenarios. Currently, GST is assessed at customs for goods valued at $400 or more if ordered from an overseas source.

New Zealand GST calculator

This example highlights the importance for small business owners, like independent graphic designers, to accurately track both their income and expenses for effective GST management. Understanding these calculations helps ensure compliance with New Zealand’s tax regulations and aids in maintaining a clear financial picture of the business. GST does not need to be charged if the service is provided to a New Zealand GST – registered businesses unless the supplier and recipient agree otherwise, in which case the supply will be zero-rated. Non-resident remote service providers must file their GST returns quarterly. A person can register on a voluntary basis even if the registration limit has not been reached.

If your request is approved, IRD will contact you with a new taxable period. Otherwise, do not change the filing frequency without any approval. Which includes Financial services, residential rent, and donated goods sold by non-profits fall into this category.

This makes it a versatile tool for individuals and businesses dealing with various transactions. Calculate.co.nz is partnered with Interest.co.nz for New Zealand’s highest quality calculators and financial analysis. In the first week, Susan worked for $80 + GST per hour, for 30 hours. In the second week, Susan worked for $95 + GST per hour, for 35 hours.