Goods and Service Tax In New Zealand
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Goods and Service Tax in New Zealand is imposed on almost all goods and services supplied in New Zealand. The Goods and Services Tax (GST) is a Value Added Tax. GST was initiated in New Zealand on 1st October 1986 at a rate of 10%. On 30th June 1989, the rate of GST in New Zealand was 12.5 percent. The consumers in New Zealand need to pay GST on all legal goods and services. So, in a way, Goods and Service Tax is a consumer tax.
Goods and Service Tax in New Zealand is imposed on almost all goods and services supplied in New Zealand. The Goods and Services Tax (GST) is a Value Added Tax. GST was initiated in New Zealand on 1st October 1986 at a rate of 10%. On 30th June 1989, the rate of GST in New Zealand was 12.5 percent. The consumers in New Zealand need to pay GST on all legal goods and services. So, in a way, Goods and Service Tax is a consumer tax.
Apart from income tax, the Goods and Services Tax (GST) is regarded as one of the main tax in New Zealand. Goods and Service Tax is an indirect tax. As on September 2003, the GST rate in New Zealand was 12.5 percent.
Exceptions
Nearly all goods and services that are supplied in New Zealand need to pay GST, except rental services of residential property and financial services.
If a tourist or visitor purchases any good from New Zealand, then he pays the GST Tax which is included in the price of the good. Normally, the visitors cannot get refund of the tax amount. But, if the seller of the good exports the sold item to the buyer’s home address, then GST is neither charged on the good nor on the freight.
GST Exemptions
Business entities that are exporting goods and services from New Zealand do not need to pay any GST to the Government of New Zealand. Generally, GST Tax is levied on all goods sold in the shops of New Zealand, but exemption can be availed on the goods purchased from the Duty Free Shops.
Conventions
If any business entity runs any business in New Zealand with an annual turnover of not less than $40,000, then it must register for GST.
Turnover is the overall value of the supplies, that are subject to taxation. In a business, turnover equals to the aggregate of value of sales and income, including grants and subsidies.
