GST is calculated in your fringe benefit tax (FBT) return. You need to pay it on the taxable value of most fringe benefits you provide.
- Value x 3 ÷ 23 = GST to pay for FBT.
GST calculated in your FBT return is not included in your GST return.
GST exempt and zero-rated supplies
You do not pay GST on fringe benefits that are exempt or zero-rated supplies such as:
- low-interest loans
- other financial services
- international travel
- contributions to employee superannuation and life insurance policies.
If you’re filing returns in myIR, adjust the value in the GST exempt and/or zero-rated taxable fringe benefits field. This will automatically recalculate GST.
For paper returns, subtract the taxable value of exempt and/or zero-rated supplies from the total taxable benefits to calculate the GST amount.
Fringe benefits used for making exempt supplies – change GST amount
If your business makes exempt supplies, there may be other GST adjustments you need to make.
If you make a mixture of taxable and exempt supplies, you do not need to pay GST on the fringe benefits related to making exempt supplies. If you provide fringe benefits related to making both taxable and exempt supplies, these fringe benefits will be partly subject to GST.
In myIR, use the change GST amount toggle to enter your adjusted GST amount.
If you’re filing paper returns, calculate the GST on the taxable value of fringe benefits (excluding GST exempt and zero-rated benefits), and make an adjustment for fringe benefits relating to exempt supplies.
Other GST adjustments
There are some situations where you may need to change the GST amount. For example:
- you’re not GST-registered (no GST should be added to FBT to pay)
- you became GST-registered or stopped being registered partway through the return period (GST only applies to the taxable benefits provided in the period you are or were GST-registered).
In myIR, use the change GST amount toggle to enter your adjusted GST amount. If you’re not GST registered, enter 0.00.
GST calculation for paper returns
GST is calculated on the value of taxable benefits from box 3 less GST exempt, zero-rated taxable benefits and other adjustments for exempt supplies:
- value x 3 ÷ 23 = GST to pay for FBT.
Enter the GST amount in box 7 for quarterly returns or box 6 for income year or annual returns.
If you’re not registered for GST, leave the GST box blank.
If you were not GST-registered for the whole period, you only need to pay GST on the value of taxable benefits provided in the time you’re registered.
GST and income tax for employee contributions
When an employee contributes towards a fringe benefit, the payment you receive must be included in your GST return and income tax returns.
For more information about GST for FBT, go to Part 8 of the Fringe benefit tax guide – IR409.