New Zealand GST Calculator
In New Zealand, 12.5% GST (Goods and Services Tax) was introduced on 1st October 1986, and added to the price of most goods and services. Including imported goods and some imported services. Since its introduction, it has had two increases. Recently updated on 1st Oct 2010 the rate increased to 15%.
How to use the New Zealand GST Calculator?
We’ve predefined a button on this GST Calculator NZ. To calculate GST just enter the amount and click on the enter button.
- The amount of GST in “Add GST” is the GST inclusive price.
- The amount of GST in “Subtract GST” is the GST exclusive price.
Also, visit India GST Calculator
How to calculate GST in New Zealand?
When adding 15% GST to the price is easy and simple, just multiply the amount by 1.15. But reverse GST Tax calculation is tricky:
- To figure out how much GST tax wax included in the price multiply GST-inclusive price by 3 then divide by 23 ($10*3/23=$1.3).
- To work out the price without GST you’ve to divide the amount by 1.15 ($10/1.15=$8.7).
For example, if the total price is $100:
- Multiply $100 by 3 to give you $300.
- Divide $300 by 23 to give you $13.
- $13 is the GST component of the total price.
It may seem easy, but many people make mistakes when calculating the GST from total price. Make sure not to calculate 15% from the total price – this will be incorrect.
Does my Business have to Register for GST?
If you’re earning more than $60,000 a year as self-employed, You’ve to register for GST. Otherwise it’s optional. The $60,000 threshold for self-employed people doesn’t include any PAYE income. When you register for GST, you can claim for GST that you’ve paid for business expenses. But you’ve the invoice for anything you claim over $50 and keep these records for seven years.
How to Register for New Zealand GST?
To register online through myIR.
- Your IRD number.
- Your BIC (Business Industry Classification) code.
- Which taxable period you want — either monthly, two-monthly or six-monthly.
- Which accounting basis do you want?
Please see, How to register for New Zealand?
What Goods and Services don’t have GST added?
Some goods and services have 0% GST charge, these are called zero-rated, typically provided to overseas people. Zero rated goods and services included products from New Zealand that are sold overseas, e.g. exports. But zero rated supplies still have to be recorded on your GST returns.
What is a Taxable Supply for New Zealand GST?
A GST (Goods and Services Tax) taxable supply refers to the supplies (Goods and Services) your business provides while carrying out taxable activity.
If your business registered for GST, a Taxable supply must include GST rate, which means you need to charge GST. The taxable GST rate is either 15% or 0% (zero-rated). After registration, You’ll need to charge GST on your sales of Goods and Services.
Taxable Business in New Zealand
If you’re a resident or not, carry a taxable business which involves supplying goods or services in New Zealand over $60,000 a year. You should require registration for GST.
Zero Rated Supplies
What are zero rated supplies? Who come under certain circumstances, attract 0% GST.
Zero rated supplies include:
- Temporary imports.
- Exported goods and Vessels.
- Services performed outside of New Zealand.
- International carriage.
- Certain exported services.
- Certain imported services.
- Duty free goods.
Reclaiming GST if you do not make Taxable Supplies
If you’re a non-resident business who does not make taxable supplies in New Zealand, You may be able to claim back your GST (Goods and Service Tax) charged on your business expenses, if you meet certain conditions.
Supplying Remote Services
If you’re a non-resident and supplying remote services such as digital content to New Zealand residents, You may require to register for GST, and return, GST on these supplies. Registration is required only if your threshold is greater than $60,000 over a year. You’ll generally only account for GST on your sales in your GST returns.
Claim GST on Renting a residential building or dwelling
If you rent a dwelling for residential purposes, you cannot claim GST on the rent. A landlord can’t claim GST on any expense incurred by dwelling. The sale of a property that was rented out for five years prior is also an exempt supply.
In this article you’ve learned about the GST rate in New Zealand, latest GST in NZ now 15%. If your business threshold is greater than $60,000, you’ve to register for GST. Registration of GST in NZ is very simple. To register online you can use myIR. In New Zealand there are some zero rated services, that means these services do not need to register for GST.