Quick Summary
GST (Goods and Services Tax) in New Zealand is a tax, usually at 15%, charged by GST-registered businesses on most goods and services supplied within NZ, most imported goods, and some imported services. It's a consumption tax added to the price of items.
Details
Understanding New Zealand's Goods and Services Tax (GST)
GST is a cornerstone of New Zealand's tax system, impacting most commercial transactions.
- Definition: GST is a broad-based consumption tax applied to the supply (sale) of most goods and services within New Zealand. It also applies to most goods imported into the country and some specified imported services.
- Standard Rate: The standard GST rate in New Zealand is 15%.
- Who Charges It: Only businesses that are registered for GST are legally able to charge GST on their sales and claim it back on their purchases.
- Examples of Taxable Activities: Businesses that supply a wide range of goods and services, such as graphic design, hairdressing, car sales, fish and chips, bungee jumping, or legal advice, typically charge GST if they are registered.
Source: GST guide (IR375)