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:
- 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
$40,000. If your turnover exceeds $250,000 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 $1,300,000 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
E-Commerce.
For more information see the GST section of the
IRD website.
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