Where only the NZD 300 threshold is breached, FBT needs to be returned only on those amounts. A statutory-based scheme of accident insurance is funded in part by premiums payable by employers and employees. Customs duty is levied on some imported goods at rates generally ranging from 1% to 10%. If you paid more GST than you collected, you can get a GST refund from us. If you’ve been filing nil for a while, check whether you need to cancel your GST registration. If you use the ratio option to calculate your provisional tax, you can only file in myIR or by paper.
- You must request and pay for an NZeTA before you travel to New Zealand.
- 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 narrow category of exempt supplies includes financial services.
You may be charged penalties if you don’t register when you need to. GST is a tax added to the price of most goods and services, including imports. Submit your return and make any required payment by the due date. If your accounting software allows you to file your return directly with us, you can do this. When you are registered you add GST to your prices and pass the GST on to us. Use our all in one GST calculator to find GST inclusive and exclusive prices, or the correct GST content of a product or service.
GST is usually payable on goods and services held at the time you cancel your registration. Keep a record of all your invoices and expense receipts (and keep these records for seven years). Put aside any GST payments you receive to pay to Inland Revenue at return time. Remember — you’re just collecting GST on behalf of the government, and you’ll need to pass on that GST when you do your return. You might need to register for GST if you sell goods or services.
What is GST?
There is also a ‘reverse charge’ mechanism that requires the self-assessment of GST on the value of certain services imported by GST-registered persons. If your turnover falls below $60,000 a year and you don’t want to keep charging GST, or if you close down your business, you need to let Inland Revenue know — call or send a message via myIR. You’ll need to let Inland Revenue know the date you intend to stop charging GST.
The excise duties are levied item-by-item at rates that vary considerably. 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. Make sure we have your correct contact details, bank account and income information. If you need to make a payment, you can pay by direct debit, credit card or debit card now. Your software provider can confirm if this filing feature is available as part of their software package.
- A holder of a New Zealand residence class visa may be an offshore person if they are outside New Zealand and have not been in New Zealand within the last 12 months.
- If you don’t think you’ll turn over that much, it’s up to you whether or not to register.
- Under the full alternate rate method, the applicable FBT rate depends on the net remuneration (including fringe benefits) paid to the employee.
- For example, all GST group members (including former members) are jointly and severally liable for the GST debt of the group during the period of their membership.
- Even though registering means extra work for your business, it has some advantages.
- No, as a visitor, you cannot claim GST back once you have paid for it.
In general, a benefit is attributable to an individual if it is principally assigned to, used, or available for use by that employee. However, there are other specific attribution rules to consider, such as the attribution rules for unclassified benefits. An ‘RLWT offshore person’ includes all non-New Zealand citizens and non-permanent residents. It also includes a New Zealand citizen who is living overseas if they have been overseas for the last three years.
How do you work out the GST amount of a price?
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. If your business is registered for GST, you can claim back the tax that paid on goods and services that you purchased to produce goods or services as part of your own business.
Business performance
Conversely, if a registered person makes taxable supplies of over $24 million in a 12-month period, they are required to return GST on a monthly basis. The remote seller GST regime minimizes compliance issues (eg no tax invoices are required to be issued). GST on sales to New Zealand customers is paid to New Zealand’s Inland Revenue but no GST on costs (input tax) may be claimed. Remote sellers may optionally register for GST on a standard basis if they will be making taxable supplies in New Zealand in addition to their remote sales.
Reduced rate GST (9%) applies to hotel accommodation on a long-term basis (longer than 4 weeks). Zero rate GST (0%) applies to exports and related services; financial services; land transactions; international transportation. Financial services, real estate, precious metals are also exempt (0%). FBT also applies to benefits received by an employee from a third party where there is a special arrangement between the employer and the third party.
Team India’s innings
If you’re GST registered, you can claim back the GST you pay on goods or services you buy for your business. You can also charge GST (15%) on what you sell — this is collecting it on the government’s behalf. On 1 October 2016, the taxation of digital (‘remote’) services supplied by offshore companies (non-New Zealand) to consumers based in New Zealand changed. TSI is essentially a list of information you need to provide to your GST registered customers.
Test yourself on tax basics, from GST to tax forms, plus how to handle PAYE and KiwiSaver. Whether you’re growing fast or new to business, expert advice can kick-start your planning.
Most of the required GST information should already be included in your tax invoice. TSI is required to be issued within 28 days of a request being received for a TSI. You are not required to register for GST if your business turnover is less than $60,000 per year.
Even though registering means extra work for your business, it has some advantages. You do not have to register GST just because you start a business or daycare accounting organisation. 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.
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. A registered person will incur late payment penalty of 1% of their underpaid GST obligation on the first day after the due date, and a 4% incremental penalty on the seventh day after the due date. All GST returns have to be submitted by the 28th day of the following month, together with any payment. The exceptions to this rule are where the period ends 30 November, or 31 March. Returns and payments for these periods are due 15 January and 7 May respectively. If the due date falls on a weekend or public holiday the due date is pushed back to the next business day.
A holder of a New Zealand residence class visa may be an offshore person if they are outside New Zealand and have not been in New Zealand within the last 12 months. New Zealand trusts and companies may also be ‘offshore persons’ if there are significant offshore interests in them. If your prices include GST, some of your price becomes GST which you have to pay to us. TSI needs to include the date of the invoice, or if invoice is not issued, the “time of supply”. For GST purposes, an invoice is a document notifying the obligation to pay.