Goods and services tax (GST) is New Zealand's consumption tax. It is usually charged at a rate of 15% by GST-registered persons and is added to the price of most goods and services supplied in New Zealand, including most imported goods and services.
This page covers:
- Determining if you are a non-resident for GST purposes
- Carrying on a taxable activity in New Zealand
- Suppling remote services
- Reclaiming GST if you do not make taxable supplies in New Zealand.
Determining if you are a non-resident for GST purposes
Individual making taxable supplies
You are a non-resident for GST purposes if you meet both of the following criteria:
- You have no permanent place of abode in New Zealand and
- You have not been in New Zealand for more than 183 days in any 12 month period.
Business making taxable supplies (such as a company)
You are a non-resident for GST purposes if the business does not have a fixed or permanent place in New Zealand related to the taxable activity
Carrying on a taxable activity in New Zealand
If you're a non-resident and carry on any activity such as a business which involves supplying goods or services in New Zealand over $60,000 a year, you may be required to register for GST under New Zealand's domestic rules.
After registration, you will need to charge GST on the supply of your goods and services and pay it to Inland Revenue. You can also claim back GST you have incurred on the supplies you receive.
You can read about when a non-resident is deemed to make a taxable supply in New Zealand in section 8(2) to (4) of the Goods and Services Tax Act 1985.
If you're unsure about whether your business needs to register, you can contact us or your tax agent.
Supplying remote services
If you're a non-resident business and you supply remote services such as digital content from outside New Zealand to customers who are resident in New Zealand and not registered for GST, you may be required to register for, and return, GST on these supplies.
Registration is required if your sales of these services is over or expected to be over $60,000 a year. You will generally only account for GST on your sales in your GST returns.
Reclaiming GST if you do not make taxable supplies in New Zealand
If you're a non-resident business who does not make taxable supplies in New Zealand, you may be able to claim back GST charged on your New Zealand business expenses if you meet certain conditions.