Goods & Services Tax

Fast Facts

GST is a tax on the supply of goods and services in New Zealand by a registered person in any taxable activity they carry out. The rate for GST is 15% although it can be zero-rated for exports, sale of going concerns or land.

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

• Certain financial services
• Sale or lease of residential properties
• Wages/Salaries and most Directors Fees

GST registration is required if the annual turnover of the business for a 12-month period exceeds or is expected to exceed $60,000.

GST returns can be filed monthly, bi-monthly or six monthly.  There are certain requirements for who must file monthly returns and who can file six monthly returns. 

There are three methods of accounting for GST:

• Invoice Basis
• Payments Basis
• Hybrid Basis

If your turnover exceeds $2,000,000 pa you can not use the Payments basis option.

If you are selling or are thinking of selling your products through your website please also refer to the section on GST and E-Commerce.

Wood Walton has more information to assist you so please Contact us.

Contact us for more information on GST or see the GST section of the IRD website.