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Papua New Guinea GST Guide 2026

Papua New Guinea's Goods and Services Tax (GST) is a value-added tax levied at a standard rate of 10% on most goods and services. Exports and certain international services are zero-rated (0%). Certain essential goods and services are exempt. Businesses with annual turnover exceeding PGK 250,000 must register for GST. The tax is administered by the Internal Revenue Commission (IRC) under the GST Act.

Overview — GST in Papua New Guinea

GST in PNG is governed by the Goods and Services Tax Act and administered by the Internal Revenue Commission (IRC). The tax applies to the supply of goods and services by registered persons in the course of business, and to imports. PNG operates a standard input-output credit mechanism, where registered businesses can claim input tax credits on GST paid on business purchases. Businesses with annual turnover exceeding PGK 250,000 must register for GST. Voluntary registration is permitted for businesses below the threshold. GST returns are filed monthly or quarterly depending on the taxpayer's turnover.

GST Rate Structure

The standard GST rate in PNG is 10% on the taxable value of supplies. The rate structure is straightforward:

  • Standard rate — 10% on most goods and services
  • Zero-rated (0%) — exports of goods, international transport, certain international services
  • Exempt supplies — financial services (interest, insurance), residential rent, basic food items, educational services, medical services

Zero-rated supplies allow suppliers to claim input tax credits, while exempt supplies do not. This distinction is important for businesses making both taxable and exempt supplies, as input tax credits may be apportioned.

Registration Threshold

Businesses with annual turnover of PGK 250,000 or more must register for GST with IRC. The application is submitted through IRC's online portal. Once registered, the business issues tax invoices showing the GST component separately. Businesses below the threshold may voluntarily register. Non-resident businesses supplying goods or services to PNG recipients may also be required to register under certain circumstances. Failure to register when required attracts penalties.

GST Filing & Payment

GST-registered businesses must file returns monthly (by the 21st of the following month) or quarterly depending on turnover. The GST return shows output tax on supplies made, input tax credits on purchases, and the net GST payable or refundable. Payment is due at the time of filing. Late filing attracts penalties and interest. IRC conducts regular GST audits and may perform inspections of business premises to verify compliance.

FAQs

Do I need to charge GST if my turnover is below PGK 250,000?

No, registration is only compulsory if annual turnover meets or exceeds PGK 250,000. Businesses below the threshold may voluntarily register. Unregistered businesses must not charge GST on their invoices.

Can I recover input GST?

Yes, GST-registered businesses can claim input tax credits on purchases used for taxable supplies. Input credits are netted against output GST in the periodic return.

What is the penalty for late GST filing?

Late filing attracts a penalty of PGK 500 plus interest on any unpaid GST. Continued non-compliance may result in IRC enforcement action.

Disclaimer

This guide provides general information about Papua New Guinea GST for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified PNG tax advisor or the Internal Revenue Commission for advice specific to your situation. InvestmentKit does not provide tax advice.