Missing a New Zealand GST return deadline will result in a fine of NZ$250. Returns and payments are due to the IRD by the 28th of the month following the end of the return period. New Zealand’s GST system is straightforward, with a standard New Zealand GST rate of 15% for almost all goods and services, a reduced rate of 9%, and a 0% GST rate. Providing services to New Zealand businesses generally does not require a GST registration. If businesses have a turnover of below NZD 60,000, voluntary registration is allowed in New Zealand. Exports and related services; financial services; land transactions; international transportation.
Best Travel Apps for New Zealand
There is no upfront cost to pay for these fees; they are included in the cost of your travel ticket. There are two “tourist taxes” that visitors are expected to pay, one is mandatory for all visitors while the other depends on what type of visa you are on. Almost all of the time, businesses will include GST in the price displayed, which we’ve experienced throughout the 10 years we’ve lived here. However, some businesses will write a price and mention “+ GST,” which means that you should add the GST to that price to determine the total price.
While we don’t have data on the New Zealand VAT refund program, more info can be obtained from the Inland Revenue. Businesses in New Zealand that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the Inland Revenue, and will follow a certain format. The GST registration number format is Taxable persons use tax registration numbers (IRD number) for GST purposes in the format xx-xxx-xxx; effective from 2008, nine-digit numbers are issued to new GST-registered persons. Late filing or payments can result in penalties and interest charges. The IRD imposes a 1% monthly penalty on unpaid amounts and interest charges on outstanding balances.
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If you need more help or have questions about the information or services on this page, contact the following agency. 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.
New Zealand GST return periods
We also go over whether it is necessary to tip in New Zealand, as well as advice for international travellers paying taxes for working in New Zealand. In New Zealand, the GST registration threshold for both resident and non-resident businesses is NZ$60,000 in annual turnover. If your company’s taxable turnover exceeds this amount, you must register for New Zealand GST.
- Requested and approved refunds are paid into a business’s bank account within 15 days.
- There is no upfront cost to pay for these fees; they are included in the cost of your travel ticket.
- If you need more help or have questions about the information or services on this page, contact the following agency.
- Because GST is a tax on all goods and services, it will be applied to almost everything you purchase in New Zealand.
You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided. While you don’t collect any GST when the rate is 0%, you do need to report the sales on your return. 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. No, as a visitor, you cannot claim GST back once you have paid for it. There are no tax refund schemes on GST for visitors to New Zealand.
Finally, for more essential advice for your trip, don’t forget to check out the 31 Tips for Travelling in New Zealand. Tipping is not mandatory or expected in New Zealand, but it will be appreciated if you tip to reward exceptional service. Travellers departing on a cruise ship are charged a Customs levy of NZ$4.55 and a Border Clearance levy of NZ$4.72. Expanding your business to New Zealand requires an understanding of its VAT system, known locally as Goods and Services Tax (GST). This guide delves into the nuances of the New Zealand GST framework, providing you with the knowledge needed to successfully navigate this aspect of doing business in New Zealand.
Travellers arriving on airlines or when should a company use last in first out lifo private craft are charged a Customs levy of NZ$16.59 and a biosecurity levy of NZ$16.92. These are the revenue thresholds at which businesses in New Zealand are required to start collecting and remitting tax. New Zealand’s consumption tax is called the Goods and services tax (GST),which was introduced in October 1986. Non-resident businesses are not required to appoint a local fiscal representative for GST purposes in New Zealand.
The cost is NZ$17 through the mobile app and NZ$23 through the website. Again, see the guide mentioned above for instructions on how to pay. Many countries allow tourists, and others making purchases for export, to receive a VAT refund on exiting the country (or make purchases VAT free).