GST New Zealand Guide 2024 What You Need to Know

01 Nov GST New Zealand Guide 2024 What You Need to Know

It’s added to the price you paid for the goods plus shipping costs, and quickbooks online journal entry you may have to pay it before customs will release the shipment. You can generally claim the cost back when submitting a GST return. The IVL applies to all visitors with a passport from either a visa-waiver country or a country where you have to apply for a visitor visa to visit New Zealand. The IVL costs NZ$100 and you will pay for it either when you request your NZETA or when you apply for your Visitor Visa.

The New Zealand Electronic Travel Authority (NZETA) and International Visitor Levy (IVL)

1. You can generally claim the cost back when submitting a GST return.
2. Refunds under NZD 5 are carried forward to the next taxable period.
3. 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”.
4. Imported goods valued over NZD 1,000 have GST and customs duties charged at the border by the New Zealand Customs Service.
5. No, as a visitor, you cannot claim GST back once you have paid for it.

Receipts can be used to show the New Zealand authorities that GST has been charged and paid. Prices shown in shops and online include GST unless they say otherwise — the GST part of what you’ve paid is printed on your receipts. It’s a little extra admin, but this guide will help you get sorted. You might struggle to see where you sit with GST if you sell by auction or lay-by, sell secondhand goods, or lease goods. In these cases, it’s worth checking out the IRD page on special supplies.

Shopping Duty-Free: How to Avoid Paying GST in 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. If you’re a non-resident business that sells low value goods such as clothing, cosmetics and electronic items to consumers in New Zealand, you may need to register for, collect and return GST. The rate for GST, effective since 1 October 2010 as implemented by the National Party, is 15%.3 This 15% tax is applied to the final price of the product or service being purchased and goods and services are advertised as GST inclusive.

Businesses with turnover below this threshold can opt for voluntary registration, enabling them to recover any input GST they may be due. It is usually charged at a rate of 15% by GST-registered persons and is added to the price of most goods and services supplied in New Zealand, including most imported goods and services. They will need their business industry classification (BIC) code, and know which taxable period applies to them and which accounting accounting basis they want. Once registered for GST, businesses must charge GST to their customers and pay anything that is owed to the New Zealand Inland Revenue. Businesses must also file GST returns at a frequency determined by its sales figures.

New Zealand — Goods and services tax (GST)

New Zealand introduced a Goods and Services Tax (‘GST’) on 1 October 1986. This is similar to VAT, and based on the OECD’s standard indirect tax regime model. It is one of the most progressive regimes in the world, with a wide base and limited exemptions. You will generally only account for GST on your sales in your GST returns.

If you provide a listed service such as ride-sharing and ride-hailing, food and beverage delivery, or short-stay and visitor accommodation there are changes from 1 April 2024. Online marketplace operators (resident or non-resident for tax purposes), who provide listed services, must collect and return GST of 15% when the service is performed, provided, or received in New Zealand. If you’re a non-resident business and you supply remote services such as digital content from outside New Zealand to customers who are resident in New Zealand, you may be required to register for, collect and return GST on these supplies. Foreign companies, with no fixed establishment in New Zealand, providing taxable goods or services to New Zealand customers may be required to GST register as a non-resident. This then requires them to charge GST on relevant supplies, complete periodic GST returns and remit collected taxes. No one wants to hear about the extra fees or taxes they might have to pay anywhere in the world.

Because GST is a tax on all goods and services, it will be applied to almost everything you purchase in New Zealand. That includes food, medication, equipment, going to the hairdressers, the doctors and even the activities you are likely to do as a traveller in New Zealand. The GST rate is 15% which is applied to all goods and services. Some rare services are exempt from GST and duty-free will offer items tax-free when landing in New Zealand from an international flight.