GST (Goods and Services Tax)

GST is a tax on goods and services which in New Zealand is charged at a rate of 15%.

An entity is required to register for GST when the annual turnover exceeds, or is expected to exceed, $60,000 in any twelve month period.

When you are GST registered you are required to file GST returns with the Inland Revenue Department (IRD) on either a monthly, bi-monthly or six-monthly basis. The six monthly basis is only available if the entity's annual turnover is less than $500,000.

You must file your GST return and any payment by the 28th of the month following the end of your taxable period. There are two exceptions to this:

  1. If your taxable period ends 30 November then your return and payment are due 15 January
  2. If your taxable period ends 31 March then your return and payment are due 7 May If the due date falls on a weekend or public holiday, the due date is the next working day.

The two most common ways to account for GST are:

  1. Payments basis: you account for GST when you make or receive a payment (sometimes referred to as the "cash basis"). Note: turnover must be less than $2,000,000 to use this basis.
  2. Invoice basis: you account for GST when you receive or issue an invoice or receive and make a payment, whichever comes first (this method takes into account debtors and creditors).

For more information on GST or for a specific question please contact us. Alternatively, additional information is available on the IRD's website