Tax Facts
Goods And Services Tax
GST is a tax on the supply of goods and services in New Zealand by a registered person on any taxable activity they carry out. The rate for GST is 15% (from 1 October 2010, previously it was 12.5%) although it can be zero-rated for exports.
Certain supplies of goods and services are "exempt supplies". These include:
- Certain financial services
- Sale or lease of residential properties
- Wages/Salaries and most Directors Fees
GST registration is required if the annual turnover of the business for a 12 month period exceeds or is expected to exceed $60,000.
You may choose to Register for GST even if your business turnover is less than $60,000. This is called "voluntary registration”
If your business turnover exceeds $500,000 pa you must file your GST returns either monthly or two-monthly. If your turnover exceeds $24 million per annum then you must file one-monthly GST returns.
There are three methods of accounting for GST:
If your business turnover exceeds $2 million per annum you cannot use the payments basis.
If you are selling or are thinking of selling your products through your website please also refer to the section on GST and E-Commerce.
For more information on GST see the GST section of the IRD website or contact your Staples Rodway advisor.
« Back
