Prior to 1 December 2019, Customs did not collect duty and GST where the total amount payable on any one importation was less than $60 (gross value of good of $400) . From 1 December 2019, New Zealand Customs does not charge GST on items purchased offshore for $1,000 or less. This is because offshore suppliers (as well as market places and re-deliverers) supplying goods valued at or below NZ$1,000 to New Zealand-resident consumers are required to register and return GST on these supplies.

• You will need to charge GST on your supplies of goods and services and pay it to Inland Revenue.
• Non-resident remote service providers must file their GST returns quarterly.
• Apart from non-resident remote service providers, GST returns may be filed monthly, bi-monthly or six-monthly depending on the level of taxable supplies in a 12-month period.

Remote sellers may optionally register for GST on a standard basis if they will be making taxable supplies in New Zealand in addition to their remote sales. This means he can claim a refund when he files his monthly GST return with the IRD. This example demonstrates how a business that makes sales but does not receive payment in a given month can still account for GST paid on expenses incurred during that period.

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These penalties are very punitive, ranging from 20% to 150% of the GST discrepancy. A range of penalties can be imposed where businesses do not comply with the GST legislation. 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. You may need to keep an eye on the ongoing use of the goods and services.

• Since he did not receive any payments for his sales, his GST collected total for the month is $0.
• GST must be charged on a supply of goods or services in New Zealand by a registered person in the course or furtherance of a taxable activity carried on by that person – this is referred to as output tax.
• Travellers departing on a cruise ship are charged a Customs levy of NZ$4.55.
• He has lived, worked and travelled across 16 different countries before calling New Zealand home.

If you file a GST return for more than one branch and division, enter total sales and income (Box 5) for all other branches, otherwise enter zero for this section. For example, Jenny owns a boutique and her taxable period what is a normal balance in accounting ends on 30th June. Jenny has at least a month to prepare her GST return and file her tax return. The GST rate in New Zealand is at 15% on most taxable goods and services, which includes imported goods and services.

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GST registrations can be submitted online or via paper applications. Non-resident companies may apply directly, or use a local tax agent to submit their application. If your customer is a fellow business, and they’ve provided a valid GST number, then adding and collecting tax isn’t necessary! The buyer will handle tax, via New Zealand’s reverse-charge mechanism. No, you don’t need a representative to handle your taxes in New Zealand. Some tentative foreign business owners may hire a tax representative for peace of mind.

Submit the return

Your GST return is due by the 28th of the month after the end of your taxable period. You must file a GST return for every taxable period, even if it is nil. The NZ GST Calculator is a tool designed to help individuals and businesses in New Zealand calculate Goods and Services Tax (GST) on their transactions. By inputting the amount excluding or including GST, the calculator provides the corresponding GST amount or the amount inclusive/exclusive of GST. Once GST registered, businesses will receive a unique GST number, to be added to all tax invoices. Currently, GST is assessed at customs for goods valued at $400 or more if ordered from an overseas source.

What is the GST?

As a GST-registered business, you can claim back the GST you’re charged on goods and services you buy and use in your taxable activity. It is usually charged at a rate of 15% by GST-registered persons and is added to the price of most goods and services supplied in New Zealand, including most imported goods and services. There are two rates of GST that are applied to goods and services in New Zealand; standard rate and zero rate. The most common exempt supplies include financial services, residential rent, charitable donations, fines, penalties and interest. You can only claim GST on goods and services to the extent they’re used in your taxable activity to make taxable supplies.

Digital services supplied by offshore companies

One important thing you must not forget is the payee code, which shows the type of tax the payment is for. This rule does not apply to you if your taxable period ends on 31st March and 30th November. If your taxable period ends on the 31st March, then your due is on the 7th May, whereas the latter falls on 15th January. You will generally only account for GST on your sales in your GST returns. If you cannot submit your return, or pay on time penalties and interest may apply.

You can rest assured as the software will do the work for your tax calculation. Instead of spending a tremendous amount of time on manual tasks, you can have more time for the things you love with Deskera. Otherwise you have to file GST103 Report, if you’re liable for provisional tax. During the GST registration process, you are required to fill in the business industry classification code (BIC). Exempt supplies are not subject to GST in New Zealand, meaning you do not need to include this in your GST return. Most businesses normally advertised the pricing of goods inclusive of GST in their physical stores or online stores unless stated otherwise.