Goods and Services Tax (GST): Who Qualifies and What You Get
Learn if your business needs to register for GST and how to manage the tax you collect from customers.
Goods and Services Tax (GST) is a consumption tax applied to most goods and services sold in the country.
Who it's for
You must register for this scheme if your business has an annual turnover of more than $60,000.
What you get
This is a system for collecting and paying consumption tax. It ensures that tax is collected on the goods and services your business provides.
What it costs you
You will need to spend administrative time preparing and filing your regular tax returns. Additionally, you must add a 15% tax to the price of the goods and services you sell.
The catch to know
The money you collect from customers for GST is not your profit. You must set this money aside specifically so you can pay it to the government.
How to apply
- Determine if your annual turnover exceeds the required threshold.
- Gather your business financial records.
- Register through the official tax portal.
- Visit https://www.ird.govt.nz for more details.