Goods and Services Tax (GST)

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 $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:

  • Invoice Basis 
  • Payments Basis 
  • Hybrid Basis 

If your turnover exceeds $1,300,000 pa you can not use the Payments basis.

If you are selling or are thinking of selling your products through your website please also refer to the section on GST and E-Commerce.

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