GST-registered businesses don’t have to pay GST on services or subscriptions from overseas suppliers. It’s added to the price you paid for the goods plus shipping costs, and you may have to pay it before customs will release the shipment. You can generally claim the cost back when submitting a GST return.

Accounting software

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.

Do I have to register my business 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 government on the GST due limitations of ratio analysis dates.

Company

1. The benefit of being registered for GST is that you may be able to claim GST back on goods or services you purchased if they are genuine business expenses.
2. A GST return is a declaration of GST you have collected for a defined period and the GST you have paid when making business purchases.
3. 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.
4. You can claim GST back from the IRD when you’ve purchased goods or services for your business.
5. So it’s really important to keep a precise record of all the GST you collect and all the GST you pay.
6. Your GST return is due by the 28th of the month after the end of your taxable period.

The benefit of being registered for GST is that you may be able to claim GST back on goods or services you purchased if they are genuine business expenses. 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.

Visa-waiver countries for New Zealand are listed in What You Need to Know About the New Zealand ETA & Visitor Levy. 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. 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. If you provide services to a customer as an independent contractor, or work through a labour hire or temping company, they usually have to deduct withholding tax from the payment made to you and forward it to Inland Revenue.

The most common zero-rated situations relate to international transactions for selling and buying goods or services. Basically, a record of all the buying and selling must be kept meticulously during the GST periods so any inconsistencies and tax irregularities can be avoided. In the GST return form, all records must be present along with the documentation. You don’t have to charge GST on exports, which includes products you sell on the internet to overseas customers. You may not realise it, but an expenses: basic definitions arrival and departure tax is added to the cost of your flight or cruise ticket to and from New Zealand.

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. You pay a 15% goods and services tax (GST) on most of your purchases in New Zealand.

Financial services, residential rent, and donated goods sold by non-profits fall into this category. Make sure we have your correct contact details, bank account and income information. Submit your return and make any required payment by the due date. Travellers departing on payback period calculator: find payback period with formula a cruise ship are charged a Customs levy of NZ$4.55 and a Border Clearance levy of NZ$4.72.