New Zealand Goods and services tax GST Rates

If you provide a listed service such as ride-sharing and ride-hailing, food and beverage delivery, or short-stay and visitor accommodation there are changes from 1 April 2024. Online marketplace operators (resident or non-resident for tax purposes), who provide listed services, must collect and return GST of 15% when the service is performed, provided, or received in New Zealand. If you’re a non-resident business and you supply remote services such as digital content from outside New Zealand to customers who are resident in New Zealand, you may be required to register for, collect and return GST on these supplies. Foreign companies, with no fixed establishment in New Zealand, providing taxable goods or services to New Zealand customers may be required to GST register as a non-resident. This then requires them to charge GST on relevant supplies, complete periodic GST returns and remit collected taxes. No one wants to hear about the extra fees or taxes they might have to pay anywhere in the world.

New Zealand GST

You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided. While you don’t collect any GST when the rate is 0%, you do need to report the sales on your return. A limited number of duty-free stores outside of the the 5 best accounting software for small business airports do this, which we outline in our complete guide to Duty-Free Shopping in New Zealand. No, as a visitor, you cannot claim GST back once you have paid for it. There are no tax refund schemes on GST for visitors to New Zealand.

Businesses with turnover below this threshold can opt for voluntary registration, enabling them to recover any input GST they may be due. 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. They will need their business industry classification (BIC) code, and know which taxable period applies to them and which accounting accounting basis they want. Once registered for GST, businesses must charge GST to their customers and pay anything that is owed to the New Zealand Inland Revenue. Businesses must also file GST returns at a frequency determined by its sales figures.

Recovery of GST by non-established businesses

1. Expanding your business to New Zealand requires an understanding of its VAT system, known locally as Goods and Services Tax (GST).
2. Read the report to learn about key industry trends, emerging issues, and challenges faced by cross-border sellers and shippers.
3. Once GST registered, businesses can manage and pay GST online using myGST — a section of the New Zealand Inland Revenue’s online service.
4. Businesses operating in New Zealand must register for GST if they have a turnover of more than NZD 60,000 in the previous 12 months, or expect to exceed this threshold within the next 12 months.
5. GST is a tax added to the price of most goods and services, including imports.

While we don’t have data on the New Zealand VAT refund program, more info can be obtained from the Inland Revenue. Businesses in New Zealand that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the Inland Revenue, and will follow a certain format. The GST registration number format is Taxable persons use tax registration numbers (IRD number) for GST purposes in the format xx-xxx-xxx; effective from 2008, nine-digit numbers are issued to new GST-registered persons. Late filing or payments can result in penalties and interest charges. The IRD imposes a 1% monthly penalty on unpaid amounts and interest charges on outstanding balances.

GST refunds

If you need more help or have questions about the information or services on this page, contact the following agency. 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.

Receipts can be used to show the New Zealand authorities that GST has been charged and paid. Prices shown in shops and online include GST unless they say otherwise — the GST part of what you’ve paid is printed on your receipts. It’s a little extra admin, but this guide will help you get sorted. You might struggle to see where you sit with GST if you sell by auction or lay-by, sell secondhand goods, or lease goods. In these cases, it’s worth checking out the IRD page on special supplies.

There is no upfront cost to pay for these fees; they are included in the cost of your travel ticket. There are two “tourist taxes” that visitors are expected to pay, one is mandatory for all visitors while the other depends on what type of visa you are on. Almost all of the time, businesses will include GST in the price displayed, which we’ve experienced throughout the 10 years we’ve lived here. However, some businesses will write a price and mention “+ GST,” which means that you should add the GST to that price to determine the total price.

Travellers arriving on airlines or private craft are charged a Customs levy of NZ$16.59 and a biosecurity levy of NZ$16.92. These are the revenue thresholds at which businesses in New Zealand are required to start collecting and remitting tax. New Zealand’s consumption tax is called the Goods and services tax (GST),which was introduced in October 1986. Non-resident businesses are not required to appoint a local fiscal representative for GST purposes in New Zealand.