If you have worked in New Zealand as part of a working holiday visa, student visa, work visa or for whatever reason, you are entitled to a tax return (tax refund) on some of the taxes that were deducted from your wages. 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. 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.
Financial services, residential rent, and donated goods sold by non-profits fall into this category. Make sure we have your correct contact capital contribution llc details, bank account and income information. Submit your return and make any required payment by the due date. Travellers departing on a cruise ship are charged a Customs levy of NZ$4.55 and a Border Clearance levy of NZ$4.72.
How can GST affect my business?
And if they’re all you sell, then you can’t register for GST. While you don’t collect any GST when the rate is 0%, you do need to report the sales on your return. If your accounting software allows you to file your return directly with us, you can do this. That new piece of how to calculate your business valuation 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. This article has been reviewed and approved by Robin, who is the co-founder of NZ Pocket Guide. With more than 15 years of experience in the New Zealand tourism industry, Robin has co-founded three influential tourism businesses and five additional travel guides for South Pacific nations.
Visa-waiver countries for New Zealand are listed in What You Need to Know About the New Zealand ETA & Visitor Levy. 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. We also go over whether it is necessary to tip in New Zealand, as well as advice for international travellers paying taxes for working in New Zealand. If you provide services to a customer as an independent contractor, or work through a labour hire or temping company, they usually have to deduct withholding tax from the payment made to you and forward it to Inland Revenue.
Digital services supplied by offshore companies
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. This is pretty rare but still happens in some trade and wholesale retailers and services, so keep an eye out. 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. For example, if you claim on a television you supposedly bought for the business, but it lives in your living room at home, you’re not being honest, and you could be penalised if found out. If you’re not sure if an expense is truly business-related, it might be a good idea to talk to an accountant about eligible expenses for your line of work.
GST-registered businesses submit the GST to the Inland Revenue Department. The GST periods differ depending on the size of the company and the amount of sales during a certain period. With GST, there are things called ‘zero-rated supplies’, which aren’t subject to GST. To understand them all, it’s best to refer to the IRD web-page about zero-rated supplies.
Fill out the return details
Part of the registration process involves choosing how often you’ll file your GST returns. In most cases, this means choosing two-monthly or six-monthly. Only businesses with sales of more than $24 million have to file GST returns every month.
Types of Financial Statements
The tax t deducted on schedular payments is withholding tax. A GST return is a declaration of GST understanding your small businesss current assets you have collected for a defined period and the GST you have paid when making business purchases. Once you’re registered for GST, you’ll need to file regular GST returns and pay GST on your taxable activities. Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only.
- Finally, for more essential advice for your trip, don’t forget to check out the 31 Tips for Travelling in New Zealand.
- Some rare services are exempt from GST and duty-free will offer items tax-free when landing in New Zealand from an international flight.
- Tipping is not mandatory or expected in New Zealand, but it will be appreciated if you tip to reward exceptional service.
- You can also claim GST back on bad debts where you have already paid the related GST to the IRD, but this will only apply if you are paying GST on an invoice basis, not a payments basis.
Then you’ll need to know the IRD number of the person or company you are registering; your bank account number for GST refunds; business turnover (total sales) in the last 12 months; and expected turnover for the next 12 months. You’ll also have to enter a BIC (business industry classification) code. However, sometimes it’s not added and the price list mentions the price plus GST (+GST) to indicate an added charge of 15% will be added to the displayed price.
