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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.