GST New Zealand Guide

Read our guide and find out all you need to know about GST in New Zealand, from registration to filing, and more.

Expanding your business to New Zealand requires an understanding of its VAT system, known locally as Goods and Services Tax (GST). This guide delves into the nuances of the New Zealand GST framework, providing you with the knowledge needed to successfully navigate this aspect of doing business in New Zealand.

What is the New Zealand GST rate?

New Zealand's GST system is straightforward, with a standard New Zealand GST rate of 15% for almost all goods and services, a reduced rate of 9%, and a 0% GST rate.

Type of GST	GST Rate	Applicable Goods/Services
Standard GST rate	15%	All other taxable goods and services.
Reduced GST rate	9%	Long-term hotel accommodation (more than four weeks).
Zero GST rate	0%	Exports, financial services, international transport, and land transactions.

Registering for GST in New Zealand

In New Zealand, the GST registration threshold for both resident and non-resident businesses is NZ$60,000 in annual turnover. If your company’s taxable turnover exceeds this amount, you must register for New Zealand GST. Businesses with turnover below this threshold can opt for voluntary registration, enabling them to recover any input GST they may be due.

To register for New Zealand GST, businesses can apply online through the Inland Revenue Department (IRD) website. The process is relatively straightforward, and businesses will receive a New Zealand GST number upon successful registration. GST registration normally takes no more than 10 days to complete.

Fiscal representative in New Zealand

Non-resident businesses are not required to appoint a local fiscal representative for GST purposes in New Zealand. However, they must ensure compliance with all GST regulations.

New Zealand GST return filing and penalties

The filing frequency for New Zealand GST returns depends on a business’s annual turnover:

Monthly filing for business with a turnover above NZ$24 million.
Bi-monthly filing for businesses with a turnover between NZ$500,000 and NZ$24 million.
Six-monthly filing for businesses with a turnover below NZ$500,000.

Returns and payments are due to the IRD by the 28th of the month following the end of the return period.

Late filing or payments can result in penalties and interest charges. The IRD imposes a 1% monthly penalty on unpaid amounts and interest charges on outstanding balances. Missing a New Zealand GST return deadline will result in a fine of NZ$250.

Reverse charge in New Zealand

The reverse charge mechanism is applicable in New Zealand for imported services and certain other situations. This mechanism requires the recipient of the service to account for New Zealand GST, rather than the supplier.