Goods and Service Tax in New Zealand
GST is charged at 15% in New Zealand. It is charged on all the items which come under the definition of Goods and Services.GST in New Zealand is a common tax that is levied on goods and/or services provided by a business or firm to their customers and clients.
This type of tax is imposed on imported goods from other countries and also imported services which are levied not only in New Zealand, but in many countries around the world. In New Zealand, the GST in New Zealand is added to the goods and services which are taxable, at the percentage rate of 15% over the total cost of the goods and/or services provided.
Goods and Services are defined as under:
- Goods includes all personal and real property however it does not include money.
- Services Cover everything except goods and money.
However there are certain supplies which are exempt from GST such as:
- Interest received
- Donated Goods and Services
- Renting out property for private use
In similar fashion, there are certain services which are exempt from taxation. Such services are:
- Salaries and wages
- Private Recreational Pursuit
- Private transactions
You need to register under GST if you have a turnover exceeding $60,000 during a financial year. You can have a voluntary registration in case your GST liability is less than $60,000. This is referred to as Voluntary registration. You need to register under GST with Inland revenue.