Businesses operating in New Zealand that add GST to the price of their goods or services must also register for GST. GST was introduced in conjunction with compensating changes to personal income tax rates and removal of many excise taxes on imported goods. Plus, for more information on work taxes, check out our guide to the New Zealand Work Tax System. Travellers arriving on a cruise ship are charged a Customs levy of NZ$11.48 and a biosecurity levy of NZ$10.58. Travellers departing on airlines or private craft are charged a Customs levy of NZ$4.52 and a Border Clearance levy of NZ$2.94. The reverse charge mechanism is applicable in New Zealand for imported services and certain other situations.
What is the New Zealand GST rate?
You pay a 15% goods and services tax (GST) on most of your purchases in New Zealand. GST is a tax added to the price of most goods and services, including imports. You don’t have to charge GST on exports, which includes products you sell on the internet to overseas customers. Financial services, residential rent, and donated goods sold by non-profits fall into this category.
A New Zealand Tax Guide for Travellers
However, if the reporting period ends on November 30, the return and payment must be submitted by January 15 of the following year. Visa-waiver countries for New Zealand are listed in What You Need to Know About the New Zealand ETA & Visitor Levy. This guide covers the essential steps ecommerce sellers need to take now that the UK has left the EU Customs Union and VAT regime to keep their cross-border sales going, avoid extra tax costs and frustrated customers. Non-resident businesses that sell low-value imported goods — a physical good valued at NZD 1,000 or less — in New Zealand may need to register for, collect, and return GST.
Download the GST Guide for Business
This is pretty rare but still happens in some trade and wholesale retailers and services, so keep an eye out. To register for New Zealand GST, businesses can apply online through the Inland Revenue Department (IRD) website. The process is relatively straightforward, and businesses will receive a New Zealand GST number upon successful registration. GST registration normally takes no more than 10 days to complete. If you’re a non-resident and carry on any activity such as a business which involves supplying goods or services in New Zealand over NZ$60,000 a year, you may be required to register for GST. In New Zealand, goods and services tax (GST) is a tax added to the price of most goods and services, including imports, and is charged at the standard how to prepare for an audit rate of 15%.
With more than 15 years of experience in the New Zealand tourism industry, Robin has co-founded three influential tourism businesses and five additional travel guides for South Pacific nations. He is an expert in New Zealand travel and has tested over 600 activities and 300+ accommodations across the country. If you have worked in New Zealand as part of a working holiday visa, student visa, work visa or for whatever reason, you are entitled to a tax return (tax refund) on some of the taxes that were deducted from your wages. The IVL is said to be “a way for travellers to contribute directly to the tourism infrastructure they use and to help protect and enhance the natural environment”. You must request and pay for an NZeTA before you travel to New Zealand. There are two ways of paying for the NZeTA and IVL, either through an Immigration New Zealand app or their website.
You can read about when a non-resident is deemed to make a taxable supply in New Zealand in section 8(2) to (4) of the Goods and Services Tax Act 1985. The tax point (time of supply) rules determine when GST is due. The general invoice rule is that the tax point is the earlier of the date of the supply or the invoice date. Businesses operating in New Zealand must register for GST if they have a turnover of more than NZD 60,000 in the previous 12 months, or expect to exceed this threshold within the next 12 months. If a business realises that, based on the previously stated registration requirements, it would not have been mandatory for it to register, it may cancel its registration.
- Consequently, wholesalers often state prices exclusive of GST, but must collect the full, GST-inclusive price when they make the sale and account to the IRD for the GST so collected.
- In New Zealand, goods and services tax (GST) is a tax added to the price of most goods and services, including imports, and is charged at the standard rate of 15%.
- There are no tax refund schemes on GST for visitors to New Zealand.
- If you’re a non-resident business who does not make taxable supplies in New Zealand, you may be able to register for GST as a non-resident business claimant and claim back GST charged on your New Zealand business expenses if you’re eligible.
GST-registered businesses don’t have to pay GST on services or subscriptions from overseas suppliers. You may not realise it, but an arrival and departure tax is added to the cost of your flight or cruise ticket to and from New Zealand. The arrival and departure tax for New Zealand, also known as “border processing levies”, is a fee to pay for the Customs and Biosecurity procedures you go through upon arrival and departure.