Filing and paying GST, and refunds

gst new zealand

For example, if you collected $500 GST on your sales for the period and you paid $100 GST on business-related purchases for the same period, the amount of you need to pay to the IRD will be $400. When GST is due and a business need to file and pay the 15% tax, the following documents and procedure can be followed depending on each company, business type, and amount of revenue generated. 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 provide a listed service such as ride-sharing and ride-hailing, food and beverage delivery, or short-stay and visitor accommodation there are changes from 1 April 2024.

Travellers arriving on a cruise ship are charged a Customs levy of NZ$11.48 and a biosecurity levy of NZ$10.58. Travellers departing on airlines or private craft are charged a Customs levy of NZ$4.52 and a Border Clearance levy of NZ$2.94. Travellers arriving on airlines or private craft are charged a Customs levy of NZ$16.59 and a biosecurity levy of NZ$16.92.

  1. Only businesses with sales of more than $24 million have to file GST returns every month.
  2. 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.
  3. With GST, there are things called ‘zero-rated supplies’, which aren’t subject to GST.

How do I file a GST return?

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. No one wants to hear about the extra fees or taxes they might have to pay anywhere in the world. Unfortunately for tourists, there are quite a few taxes to juggle when visiting New Zealand. As many taxes are included in the price, you’ll hardly notice that you’re paying the extra percentage.

Submit the return

GST is a tax added to the price of most goods and services, including imports. You will generally only account for GST on your sales in your GST returns. If you’re a non-resident and carry on any activity such as a business which involves supplying goods or services in New Zealand over NZ$60,000 a year, you may be required to register for GST. Plus, for more information on work taxes, check out what is window dressing our guide to the New Zealand Work Tax System.

gst new zealand

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In simple words, in any taxable activity, a business pays as well as collects GST during various transactions and should keep a record of these for GST returns. GST can be filed on a monthly basis, two-monthly basis, or is insurance in accounting recognized as an expense or an asset 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.

If you earn over $500,000 per year, you can’t choose the six-monthly filing option. Different countries have different names for this good and service tax like GST and VAT Value Added Tax and the percentage of the tax varies. The purpose is to regulate the market and free trade and ensures standard procedures are followed in business transactions. It is a form of indirect tax that the government collects via the sale of goods and services that businesses impose and give to the government.

As a GST-registered person or business, you are collecting and paying GST all the time. So it’s really important to keep a precise record of all the GST you collect and all the GST you pay. It also requires you to keep records of all invoices and receipts that show GST charged or paid.

If you buy something from a supplier who is not GST registered, the price would not include what is leverage definition example and formula GST so there’s no GST for you to claim back on that purchase. Now that you got basic information about GST, registered for a GST return if you haven’t and establish your business. And as a registered business always remember when is GST due, if possible, note GST dates in your calendar so you can file on time.

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