RV Accounting

New Zealand

New Zealand

Like India, New Zealand has a similar policy for taxes and that is Goods and Service Tax (GST). There are few requirements and terms for filing GST in New Zealand that are as below.

What is GST?

Goods and Service Tax is a tax liability that is implied to all the goods and service providers that are indulging in taxable activities in New Zealand. It is also implied on most of the imported goods and some imported services. A rate of 15 per cent is charged as GST in New Zealand.


When does one need to register for GST?

  • When a business or an individual is involved in any taxable activities
  • A business or an individual whose revenue for the last 12 months exceeds $60,000
  • When GST amount is included in the goods or services that are being supplied

On what GST is being charged?

In New Zealand, government charges GST on the supply of most of the goods and services including the following,

  • Services: Graphic design, hairdressing, building or painting
  • Products: Clothing, cars or takeaway food
  • Experiences: Bungee jumping, skiing or going to the movies
  • Professional services: Legal advice

However, businesses that supply the items which are not registered under GST or exempted under GST, people working for salary and wages, or selling a private property occasionally do not attract GST.

How to register for GST in New Zealand?

It takes the following steps in order to register for GST in New Zealand as per their official website.

  • Check whether an individual or a business is eligible to file GST.
  • Get IRD (Ireland Revenue Department) number to file GST
  • Choose on how to claim or return GST
  • Decide the frequency to pay GST
  • Find business description and code to file GST
  • Register for GST with myIR secure online services

What to expect after registration?

  • A business or an individual after registering has to apply the standard GST rate of 15 per cent on the goods and services supplied
  • Have to issue tax invoices within 28 days
  • File regular GST return even though there is no revenue or expenditure

In New Zealand, a business or an individual can opt for cancelling its GST registration in 21 days, if they decide on not incur any taxable activities for the next 12 months.

Requirements of New Zealand Businesses:

Setting up a business is a challenge as it requires lots of documentation and a bunch of approvals from the concern Government departments, which also take a good amount of time. Unlike such scenarios, setting up a business in New Zealand is quite simple and easy. In New Zealand, there are three types of business entities that are a sole trader, partnership and limited liability companies.

How to start a business?

To start a business in New Zealand, an individual needs to adhere to the registration process as stated below.

  1. One has to register the business on the company’s official website.
  2. A business can either use its existing login credentials or else has to create a new login ID.
  3. After registering, one needs to check and reserve the availability of the desired company name.
  4. Then, the business automatically gets a New Zealand Business Number (NZBN) which is a unique identifier in New Zealand that also boosts the interactions and communication process with the Government and other business as well.

After setting up a business, take the following formalities into consideration:

  • Directors: As per the official website of the New Zealand Government, it’s mandatory for all companies to have at least one director (Owner can be the one.)
  • Staff: A business can opt not to have anyone else than the owner itself to run the business, but if it wants to hire staff than the business must have to register as an employer with the Ireland Revenue.
  • Shareholders: As per the regulations, every business needs to have at least one share and one shareholder.
  • Constitution: Though it’s not mandatory, it’s always better if a business has already constituted its boundaries, rights, duties and powers.


Financial requirements:

A business in New Zealand obligates certain financial requirements like,

  • Taxes: In New Zealand, a company is liable to pay a 28 per cent tax on its profit, or they can also distribute some part of it to shareholders as dividends, who pay taxes individually on their personal income.
  • Record keeping: As per the Government’s official site, a business must record all the transactions like banking information, proof of income that includes cash income and expenses, and cashbooks for at least past 7 years.

To know more about GST in New Zealand and related services contact RV Accounting today!

One of our friendly executives will assist you for further requirement.