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GST Guide — Goods and Services Tax Registration, Returns, and Rates in NZ

the Goods and Services Tax (GST) in New Zealand. The guide covers the GST rate of 15%, the GST registration threshold ($60,000), the GST returns (the "monthly, the two-monthly, the six-monthly"), the input tax credits, the zero-rated supplies, and the GST on the imports.

GST Registration and Rates

The Goods and Services Tax (GST) in New Zealand is the broad-based consumption tax at the standard rate of 15%. The businesses must register for the GST if the annual turnover exceeds $60,000 (the "registration threshold"). The voluntary registration is allowed below the threshold. The GST is charged on the supply of the most goods and the services in New Zealand. The zero-rated supplies (the "0% GST") include the financial services, the residential rent, the donated goods sold by the charities, and the exports. The exempt supplies are limited in New Zealand (the "no GST" — the financial services and the residential accommodation).

GST Returns

The GST-registered business must file the GST returns (the GST101 or the GST103) showing the output tax (the GST on the sales) and the input tax (the GST on the purchases). The filing frequency can be: the monthly (the "one-monthly" — filed by the 28th of the following month), the two-monthly (the "two-monthly" — the most common option for the small businesses), or the six-monthly (the "six-monthly" — for the small businesses with the turnover below $500,000). The GST payment is due at the same time as the return. The GST can be calculated using the invoice basis, the payments basis, or the hybrid basis.