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 12.5% although it can be zero-rated for exports
Certain supplies of goods and services are "exempt supplies". These include:
- Certain financial services
- Sale or lease of residential properties
- Wages/Salaries and most Directors Fees
GST registration is required if the annual turnover of the business for a 12-month period exceeds or is expected to exceed $60,000 as from 1 April 2009, prior to that date it was $40,000.
Generally if your turnover exceeds $500,000 pa you must file your GST return monthly or two-monthly. However, the IRD may allow you to continue on a six-monthly basis if you meet certain criteria as specified by the IRD.
There are three methods of accounting for GST:
If your turnover exceeds $2,000,000 pa 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 GST and E-Commerce or the IRD website
For more information on GST see the GST section of the IRD website.
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