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Goods & Services Tax (GST)

IRD - 20 January 2012

Goods and services tax (GST) is a tax on most goods and services in New Zealand, most imported goods, and certain imported services. GST is added to the price of taxable goods and services at a rate of 15%.

Certain supplies of goods and services are "exempt supplies". These include:

Letting or renting a dwelling for use as a private home
Interest you receive
Donated goods and services sold by a non-profit body
Certain financial services
Wages/Salaries and most Directors Fees

GST registration is required if the annual turnover of your 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 referred to as "voluntary registration”

If your business turnover exceeds $500,000 annually, you must file your GST returns either monthly or two-monthly.

If your turnover exceeds $24 million per year, then you must file one-monthly GST returns.

There are three methods of accounting for GST:

If your business turnover is greater than $2 million per annum you cannot use the payments basis.

For more information on GST, please contact us or take a look at the GST section of the IRD website.

All information is correct at the date of article publication. Please note we provide the information as a service only. Accordingly, the contents are not intended as a substitute for specific professional advice and should not be relied upon for that purpose.

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