Your guide to the Goods & Services Tax (GST)
Everything you need to know about GST including thresholds, rates & how to register for it!
Goods & Services Tax (GST) articles
Everything you need to know about GST in New Zealand.
What is GST?
GST stands for goods and services tax. It’s a 15% tax that’s added to nearly everything you buy in New Zealand. Learn more in our article below.
How to register for GST
If your annual turnover is above $60,000, you’ll need to register for GST with the IRD. Check out our article below for more information on how to get registered with the IRD.
How to calculate GST
As a GST registered business you need to increase your prices by 15%. Check out our article below for more information and the formula you can use to calculate GST.
How to claim back GST
GST registered businesses can claim back a credit for any GST they have paid on business related expenses such as inventory, stationary, machinery etc. This is called an input tax credit, or a GST credit. Learn more in our article below.
How does GST work for small businesses?
If you intend to trade as a small business in New Zealand, read our article below to find out everything you need to know about GST for small business owners.
GST returns for small business
In New Zealand, if you’re a business that has registered for the goods and services tax and has either charged GST to customers or paid GST to your suppliers, you’re obliged to submit a GST return. Learn everything you need to know about GST returns for small business in our article below.
Taxable & supplies exempt from GST
In New Zealand, GST taxable supplies sold under taxable activity must attract a 15% GST payment to the IRD, but there are some exemptions from GST under a small range of circumstances. find out everything you need to know in our article below.
Frequently asked questions
When did GST start in New Zealand?
Goods and Services Tax (GST) came into effect in 1986. Its purpose was to overhaul the taxation system and rectify a large budget deficit.
What is the GST threshold?
The GST threshold is a GST turnover of $60,000. You must register for GST and in these circumstances:
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- your turnover was at least $60,000 in the last 12 months, or you expect it will be at least $60,000 in the next 12 months
- you add GST to the price of the goods or services you sell.
What is GST turnover?
GST turnover is the gross income (before tax) of your business, excluding the 15% GST charged in sales to your customers. Turnover is not the same as profit. Profit is the money you have after you’ve paid your expenses.
What is the GST on exports?
If your business exports goods and services overseas from New Zealand they are generally zero-rated GST supplies. That means the exported goods are billed at GST of 0%; and you can claim back input GST.
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Free GST guide
There’s a lot to get your head around when you’re starting a new business, and GST is just one bit most fledgling business owners will need to get to grips with. If you’re looking for help, download our free guide to better understand GST.
