GST
GST is a tax on the supply of goods and services in New Zealand by a registered person on any taxable activity they carry out. The rate for GST is 15% although it can be zero-rated for exports
Certain supplies of goods and services are "exempt supplies". These include:
- Wages/Salaries and most Directors Fees
- Sale or lease of residential properties
- Certain financial services
GST registration is required if the annual turnover of the business for a 12-month period exceeds or is expected to exceed $60,000 (exclusive of GST). If your turnover exceeds $500,000 pa you must file your GST return monthly or bi-monthly.
There are three methods of accounting for GST:
- Payments Basis
- Invoice Basis
- Hybrid Basis
If your turnover exceeds $24m per annum, you must use the invoice basis.
If you are selling or are thinking of selling your products through your website, please also refer to our section on E-Commerce.
For more information see the GST section of the IRD website.