Tax – GST

GST is a tax applied to the supply of goods and services by a registered person in New Zealand on any taxable activity that they provide.

The GST rate is 15% – however exports are zero-rated.

When is GST required?

• If an annual turnover of a business for a 12 month period exceeds or is expected to exceed $60,000.00.

When do GST returns need to be filed?

• Monthly.
• Bi-monthly.
• 6 monthly.

(Some rules apply to who may file monthly or 6 monthly)

There are 3 methods of accounting for GST?

• Invoice basis.
• Payments basis.
• Hybrid basis.

Turnover that exceeds or is likely to exceed $2 million per annum:

• Not entitled to use the Payments basis method, if the $2 million threshold for the last 12 months has been met.

Website sales and E-Commerce:

• Visit IRD website Open link