Goods and services tax (GST)
Requirement
Most countries in the world have implemented VAT as the most common tax system for consumption.
In New Zealand, the Goods and Services Tax (GST) is a broad-based consumption tax that is collected on most goods and services. The current rate is 15%.
Businesses that have paid for goods and services inclusive of GST can claim a credit. The GST credit, also referred to as input tax credit, is a credit for the tax that is included in the price of business inputs.
Businesses with an annual turnover of NZ$60,000 must register for GST. Businesses with a turnover below this amount can voluntarily register. Smaller businesses can choose to report GST monthly, bimonthly, or six-monthly to the IRD. Larger businesses must report GST monthly.
During the final week of the taxable period, the company sends their GST return, or an email reminder is sent to the company. The company can file the GST return and make any payment to the IRD until the 28th of the month following this taxable period. The GST return can be filed electronically through ‘myIR Secure Online Services’, through accounting software or using a paper return.
For imported services that are received, a tax invoice is not required. The GST of 15% must be included in the GST return that covers the taxable period during which the imported service was charged or paid.
M3 solution
These requirements are supported:
- GST on sales of goods and services
- GST on purchases of goods and services
- GST for suppler self-billing
- Required GST information on invoices
- GST reporting
- GST reconciliation
- GST payments and refunds