GST New Zealand Guide 2024 What You Need to Know

New Zealand introduced a Goods and Services Tax (‘GST’) on 1 October 1986. This is similar to VAT, and based on the OECD’s standard indirect tax regime model. It is one of the most progressive regimes in the world, with a wide base and limited exemptions. You will generally only account for GST on your sales in your GST returns.

GST rate

This mechanism requires the recipient of the service to account for New Zealand GST, rather than the supplier. If you’re unsure about whether your business needs to register, you can contact us or your tax agent. Read the report to learn about key industry trends, emerging issues, and challenges faced by cross-border sellers and shippers. Once you’ve completed all necessary registration processes, you’ll receive a VAT registration certificate within one month. Businesses must account for VAT from the date they submitted their registration application (not from the date they receive their registration certificate). A business must provide receipts to buyers if they’ve been charged GST.

How to complete your GST registration

1. As many taxes are included in the price, you’ll hardly notice that you’re paying the extra percentage.
2. There are two ways of paying for the NZeTA and IVL, either through an Immigration New Zealand app or their website.
3. Refunds in New Zealand will not be paid if they’re to be used to pay any other taxes owed.

Imported goods valued over NZD 1,000 have GST depreciation conventions and customs duties charged at the border by the New Zealand Customs Service. On 1 October 2016, the taxation of digital (‘remote’) services supplied by offshore companies (non-New Zealand) to consumers based in New Zealand changed. These are the taxes you might be expected to pay as a tourist or international visitor to New Zealand, which we will go into more detail about in this New Zealand tax guide for travellers.

That new piece of GST legislation mirrors similar rules governing the supply of digital services introduced in the European Union (EU) in January 2015 on the taxation of digital goods. Because businesses claim back their input GST, the GST inclusive price is usually irrelevant for business purchasing decisions, other than in relation to cash flow issues. Consequently, wholesalers often state prices exclusive of GST, but must collect the full, GST-inclusive price when they make the sale and account to the IRD for the GST so collected. You might need to register for GST if you sell goods or services. Xero does not provide accounting, tax, business or legal advice.

New Zealand GST registration number format

It’s added to the price you paid for the goods plus shipping costs, and you may have to pay it before customs will release the shipment. You can generally claim the cost back when submitting a GST return. The IVL applies to all visitors with a passport from either a visa-waiver country or a country where you have to apply for a visitor visa to visit New Zealand. The IVL costs NZ$100 and you will pay for it either when you request your NZETA or when you apply for your Visitor Visa.

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. The GST rate is 15% which is applied to all goods and services. Some rare services are exempt from GST and duty-free will offer items tax-free when landing in New Zealand from an international flight.

If you’re a non-resident business who does not make taxable supplies in New Zealand, you may be able to register for GST as a non-resident business claimant and claim back GST charged on your New Zealand business expenses if you’re eligible. 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. The rate for GST, effective since 1 October 2010 as implemented by the National Party, is 15%.3 This 15% tax is applied to the final price of the product or service being purchased and goods and services are advertised as GST inclusive.