There could be other practical implications as a result of the new GST invoicing rules being implemented. Please contact our KPMG GST specialist team if you need further guidance. Most GST registered businesses should be able to continue issuing their tax invoices and GST credit notes without making any changes to their systems. The new rules would allow a wider range of invoicing practices to be adopted (e.g., e-invoicing systems).

Once you’ve registered, you have to complete regular GST returns. GST was introduced in conjunction with compensating changes to personal income tax rates and removal of many excise taxes on imported goods. If you cannot submit your return, or pay on time penalties and interest may apply. If you regularly sell goods or services you might need to charge GST to your customers.

© 2023 KPMG, a New Zealand Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. A) No change if your tax invoice shows the GST exclusive amount, GST amount and the gross amount for the supply. You must request and pay for an NZeTA before you travel to New Zealand. There are two ways of paying for the NZeTA and IVL, either through an Immigration New Zealand app or their website. The cost is NZ$9 through the mobile app and NZ$12 through the website.

• Apart from non-resident remote service providers, GST returns may be filed monthly, bi-monthly or six-monthly depending on the level of taxable supplies in a 12-month period.
• You collect GST from your customers on the sale of your goods or services.
• The new rules would allow a wider range of invoicing practices to be adopted (e.g., e-invoicing systems).

Prior to 1 December 2019, Customs did not collect duty and GST where the total amount payable on any one importation was less than $60 (gross value of good of $400) . From 1 December 2019, New Zealand Customs does not charge GST on items purchased offshore for $1,000 or less. The supplier is only required to register if they meet the registration requirements, that is, sales or expected sales of $60,000 to New Zealand customers in any 12-month period.

Filing in accounting software

A person cannot be treated as a member of more than one GST group at a time. Goods and Services Tax (GST) is the main type of indirect taxation in New Zealand. It is crucial to keep accurate records of your receipts and invoices. If you are the buyer, you can claim GST on expenses and purchases before paying for them. You do not need to meet a specific sales threshold to this method. When deciding whether you need to register for GST, always refer to the IRD website or talk to your tax lawyer.

Yes, although non-resident businesses are only able to register for GST in New Zealand if their taxable supplies are generated when the time of supply occurs within New Zealand. Exceptions to this are noted elsewhere in this summary (eg remote sellers of goods and services). A person can register on a voluntary basis even if the registration limit has not been reached. Yes, non-resident suppliers of remote services must register, charge and account for GST on supplies made to New Zealand residents. The same $60,000 of sales in any 12-month period registration threshold applies. Foreign companies, with no fixed establishment in New Zealand, providing taxable goods or services to New Zealand customers may be required to GST register as a non-resident.

• Customs duty is levied on some imported goods at rates generally ranging from 1% to 10%.
• Employers can pay FBT at either a single rate of 63.93% or use an alternate rate method (whereby benefits are attributed to employees).
• Even though your business has to pay GST, in practice, it is the final consumer who bears this tax.
• Unlike other indirect taxes, such as GST, once duty has been paid it is not recoverable by the importer.
• There are two rates of GST that are applied to goods and services in New Zealand; standard rate and zero rate.

The arrival and departure tax for New Zealand, also known as “border processing levies”, is a fee to pay for the Customs and Biosecurity procedures you go through upon arrival and departure. There is no upfront cost to pay for these fees, they are included in the cost of your travel ticket. 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$35 and you will pay this either when you request your NZETA or when you apply for your Visitor Visa.

Do business online

This then requires them to charge GST on relevant supplies, complete periodic GST returns and remit collected taxes. Apart from non-resident remote service providers, GST returns may be filed monthly, bi-monthly or six-monthly depending on the level of taxable supplies in a 12-month period. GST does not need to be charged if the service is provided to a New Zealand GST – registered businesses unless the supplier and recipient agree otherwise, in which case the supply will be zero-rated. Non-resident remote service providers must file their GST returns quarterly.

The GST (plus any duties and other fees) must be paid by the importer at the time of importation in order for the goods to be released. The importer (if GST registered) can recover the GST where the goods imported are for use in its taxable activity. GST is charged on the value of the importation, including any customs duty, freight and insurance.It is important to note the interaction between GST and customs duty.

Backdating your GST registration

Under the full alternate rate method, the applicable FBT rate depends on the net remuneration (including fringe benefits) paid to the employee. For employees who received attributed fringe benefits in any quarter during the year, the employer must calculate the employee’s fringe benefit inclusive of cash remuneration. There are two rates of GST that are applied to goods and services in New Zealand; standard rate and zero rate.

Taxes You (Might) Have to Pay as a Tourist in New Zealand

However, in practice, most businesses will factor the cost of GST into their prices so that they can recoup it from their customers. This tax is payable on most goods and services sold for domestic consumption in New Zealand, including freelance accountant certain imports. On occasion, you may pay GST to your suppliers when you buy supplies for your business activities. However, unlike regular consumers, you can claim this back if you have registered with Inland Revenue (IRD).

You can use SCI to correct many errors, such as an incorrect description of the supply, an incorrect amount charged, or an incorrect GST rate and a cancellation of the supply. There is no specific time requirement to issue SCI, but you will need to issue and keep SCI to support any GST claims on the SCI. Late filing penalties are imposed if GST returns are not lodged by the due date.

A limited number of duty-free stores outside of the airports do this, which we outline in our complete guide to Duty-Free Shopping in New Zealand. 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. For example, a non-resident who only exports goods to a New Zealand wholesaler would not be able to register for GST if the goods are outside of the country when an invoice is issued or any payment is received. However, the ability for a non-resident to GST register has been expanded (further information can be found below). Therefore, once a person is registered for GST all of their business activities will be covered by the registration – even if the nature of some of those activities are different.