Imported goods valued over NZD 1,000 have GST 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.
New Zealand GST return filing and penalties
You will need to charge GST on your supplies of goods and services and pay it to Inland Revenue. You will also be able to claim back the GST you incur on your business expenses. Refunds in New Zealand will not be paid if they’re to be used to pay any other taxes owed. They will also not be paid if the Inland Revenue is waiting for the business to file an overdue GST return or if any information is missing from the application. Once GST registered, businesses can manage and pay GST online using myGST — a section of the New Zealand Inland Revenue’s online service. This article has been reviewed and approved by Robin, who is the co-founder of NZ Pocket Guide.
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 families first coronavirus response act and adp run 2020 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.
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.
Unfortunately for tourists, there are quite a few taxes to juggle when visiting New Zealand. As many taxes are included in the price, you’ll hardly notice that you’re paying the extra percentage. Additionally, there are a couple of visitor taxes for New Zealand, such as the NZETA and IVL, for which you will have to pay an upfront cost. We go through it all in this New Zealand tax guide for travellers. Requested and approved refunds are paid into a business’s bank account within 15 days.
GST on listed services
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.
More About Taxes in New Zealand
Refunds under NZD 5 are carried forward to the next taxable period. Non-resident GST-registered businesses will not need a New Zealand bank account to receive their refund. For GST-registered businesses, a GST return is due by the 28th of the month after the end of the taxable period.
The New Zealand Electronic Travel Authority (NZETA) and International Visitor Levy (IVL)
- These are the revenue thresholds at which businesses in New Zealand are required to start collecting and remitting tax.
- 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.
- 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.
- However, if the reporting period ends on November 30, the return and payment must be submitted by January 15 of the following year.
- 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.
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.
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.
