If the amount of use changes, you may need to make further adjustments if it’s different to your first estimate. Estimate a fair and reasonable percentage when you first get the goods or services. Find out more about low value imported goods or what to do if you get charged GST twice.

The calculation is based on the ‘base’ value – the price excluding GST for adding GST, or the total price including GST for determining the tax component. For simplicity, let’s consider a base value of $100 in our examples. This approach helps in understanding the process of calculating GST for different scenarios.

Replies to “New Zealand GST Calculator”

In New Zealand, foreign businesses are expected to file tax returns every quarter. But once your local sales do surpass NZD 60,000, then you may have to register for VAT and comply with all of the New Zealander rules around tax rate and collection, invoices, and filing returns. No matter where you live or where your online business is based — if you have customers in New Zealand, you gotta follow New Zealander GST rules.

• The tax initially was a 10% rate but has been increased twice to the 15% that it is today.
• Conversely, if a registered person makes taxable supplies of over $24 million in a 12-month period, they are required to return GST on a monthly basis.
• The amount of GST you claim (input tax) is subtracted from the amount of GST you charge (output tax) to calculate your tax to pay or GST refund.
• Travellers departing on airlines or private craft are charged a Customs levy of NZ$4.52.

A person can register on a voluntary basis even if the registration limit has not been reached. The GST (plus any duties and other fees) must be paid by the importer at the time of importation in order for the goods to be released. The importer (if GST registered) can recover the GST where the goods imported are for use in its taxable activity. GST is charged on the value of the importation, including any customs duty, freight and insurance.It is important to note the interaction between GST and customs duty. Customs duty is levied upon the importation of certain goods into New Zealand.

Persons or entities with annual revenue less than $60,000 do not have to register for GST.[6] This threshold has increased three times since the introduction of GST in 1986. This article was reviewed and published by Robin, the co-founder of NZ Pocket Guide. He has lived, worked and travelled [updated] list of ifrs and ias 2019 across 16 different countries before calling New Zealand home. He has now spent over a decade in the New Zealand tourism industry, clocking in more than 600 activities across the country. He is passionate about sharing those experiences and advice on NZ Pocket Guide and its YouTube channel.

How can I register for GST in New Zealand?

Here is an additional GST calculation example using real New Zealand GST incurring transactions. Just follow our instructions on how to register for GST in New Zealand. Shortfall penalties and interest can be applied for incorrect positions taken in GST returns.

How to file your GST return

You can claim this amount back if you’re GST registered and are using the goods solely to make taxable supplies. Almost all of the time, businesses will include GST in the price displayed. However, some businesses will write a price and mention “+ GST” which means that you should add the GST to that price to know how much the price is in total. This is pretty rare but still happens in some trade, wholesale retailers and services, so keep an eye out. Before you can work out your GST total, you need to calculate your sales and income and your purchases and expenses.

When to file your GST return

You pay a 15% goods and services tax (GST) on most of your purchases in New Zealand. 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. With Deskera, you can easily apply the New Zealand GST tax rates to your transactions and generate a proper sales invoice. You can only file using your myIR account or manual filing if you are using the ratio option to compute your provisional tax. Once you have your account set-up, you can make payment anytime, anywhere.

According to the statistic from StatsNZ, the number of enterprises is increasing in New Zealand. There is a total of 557,680 enterprises in New Zealand as of February 2020, an increase of 1.7% from February 2019. Understanding New Zealand GST (Goods and Services Tax) rules and regulations is a must for every organization and business owner. If you’re unsure about whether your business needs to register, you can contact us or your tax agent. If you’re a non-resident business that sells low value goods such as clothing, cosmetics and electronic items to consumers in New Zealand, you may need to register for, collect and return GST.

Open an NZ Bank Account Without an Address + 6 More Banking Tips

When buying products and services, some products’ pricing are exclusive of GST, whereas some other are GST-inclusive. Once you have reached the business turnover GST requirement, it’s time for you to register for a GST account. Make sure we have your correct contact details, bank account and income information.

Robin is also the co-founder of several other South Pacific travel guides. Travellers departing on a cruise ship are charged a Customs levy of NZ$4.55. 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.

What are Zero-Rated Supplies in New Zealand?

Yes, the GST NZ Calculator is programmed with the current GST rate in New Zealand, ensuring accurate calculations. However, it’s always good practice to double-check the official government website for any recent changes in the GST rate. Calculate.co.nz is partnered with Interest.co.nz for New Zealand’s highest quality calculators and financial analysis. In the first week, Susan worked for $80 + GST per hour, for 30 hours. In the second week, Susan worked for $95 + GST per hour, for 35 hours. In the third week, she worked for $85 + GST per hour for 40 hours, and in the last week, she worked for $90 + GST for 20 hours.