How to calculate GST
You pay GST on your purchases and expenses and collect GST on your sales and income. The difference between these two is what you pay or claim.
How to add GST
Product $100.00 (excl GST) x 15% GST amount $ 15.00 GST inclusive total $115.00
How to work out GST content
Product $115.00 (incl GST) x 3/23 GST amount $ 15.00 GST exclusive total $100.00
If you're not registered for GST you must not show GST on your invoices.
How to complete your GST return
To complete your return you will need to work out GST:
- collected on your sales/income
- paid on any expenses, and
- on any adjustments.
If you want to learn more please attend one of our GST workshops.
In some cases, you have to make adjustments to your GST calculation in your return.
The two most common adjustments are for:
Depending on the value, adjustments can be done annually or in your regular GST returns. We show you how to make adjustments in our GST workshops.
The rules for making GST adjustments were different prior to 1 April 2011. Find out more about these adjustments.
What happens if you don't file or pay your GST on time?
If you don't file your GST returns and pay any GST on time you may be charged penalties and interest.
To avoid penalties and interest you must:
- file your GST returns by the due date,
- pay GST by the due date,
- contact us early about any changes relating to your GST returns or your GST registration, and
- contact us early if you're unable to make the required payment on time.
If you're late with filing and/or paying, you may be charged:
- late filing penalty
- late payment penalties, and
What if I have filed my return but can't pay on time?
If you have filed a return and discover that you're not able to pay the required tax by the due date, you may be able to prevent interest and penalties from adding up by:
- Borrowing money from a bank or other financial institution to meet the payment by the due date.
- Setting up an instalment arrangement online. An instalment arrangement should pay off the debt in the shortest possible time while keeping ongoing tax obligations current (e,g. GST and PAYE). Use-of-money interest will be charged during the arrangement.
- Requesting an instalment arrangement through the secure mail service in myIR Secure Online Services.