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Understanding GST

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GST is short for Goods and Services Tax, and is just that: a tax on goods provided and services rendered.

The current GST rate in NZ is 15%.

It is applied to goods and services within NZ, and is designed to be borne by the end user ie the person or business who consumes the good or service and does not on-sell it.

Once your annual turnover goes over $60,000, you must register for GST. If your turnover is less, you can still opt to register, but you don’t have to.

A business or person who is registered for GST may charge GST on their sales and also claim GST on their expenses.  The difference is then either paid to or refunded by, the Inland Revenue Department.

If you would like to calculate your own GST, visit the IRD website for a selection of How To guides

If you would like us to take care of it for you, give us a call on 09 273 7377