Goods and Services Tax

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 15% 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.

If your turnover exceeds $500,000 pa you must file your GST return monthly or bi-monthly.

There are three methods of accounting for GST:

  • Invoice Basis
  • Payments Basis
  • Hybrid Basis

If your turnover exceeds $2,000,000 pa you must use the invoice basis.

For more information on GST see the GST section of the IRD website.