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What is GST?
GST is a tax on the consumption of most goods and service in New Zealand and is collected on behalf of the government by registered persons. Registered persons charge GST on their supplies of goods and services, and claim GST on goods and services consumed in making taxable supplies.

GST is generally charged and accounted for at a rate of 12.5%.

Registered persons are required to file GST returns with Inland Revenue. They account for GST on their supplies made (eg sales) and claim GST on their supplies received (eg expenses). If the GST on their sales exceeds the GST

on their expenses, the difference is payable to Inland Revenue. If the GST on expenses exceeds the GST on sales, Inland Revenue will refund the difference.

Do you have to register for GST?
You must register for GST if you are conducting a taxable activity (e.g. a home business) and your annual turnover exceeds or is expected to exceed $40,000 in the next 12 months. If your annual turnover is less than $40,000 you can voluntarily register for GST.

A useful guide is GST - do you need to register? (IR 365).

You can register for GST online.

What are your obligations as a registered person?
A registered person must:

• charge GST on their sales/services
• give tax invoices to their customers when asked to do so
• retain tax invoices for business expenses
• account for GST according to their accounting basis
• file GST returns by the due date (you can do this online)
• pay any GST owing by the due date
• keep sufficient records
• tell Inland Revenue about any relevant changes to their circumstances.

What sales/services are subject to GST?
You must charge GST of 12.5% on most supplies you make. However some supplies are zero-rated or exempt.

What expenses can you claim?
In general terms, you can claim GST on supplies if:

• the supplies are used in your business, and
• you hold a tax invoice from your supplier.