ESSENTIAL GST RULES IN NEW ZEALAND

1. REGISTRATION

If your business has a turnover of $60,000 or more in 12 months, you must register for GST. You can also register voluntarily if your turnover is below this threshold. Once registered, you must charge GST on your goods and services and file regular GST returns.

 Step 1. Get an IRD Number

If you haven’t already, you must get an IRD number from the Inland Revenue Department (IRD). You may either apply for an IRD number online or fill out an IRD number application form. By registering for GST, your business will comply with New Zealand’s tax laws and be able to charge and claim back GST.

 Step 2. Register for GST

Once you have an IRD number, you can register for GST through the IRD’s website. Alternatively, you can register by completing a GST registration form and sending it to the IRD.

 Step 3. Provide Business Details

When registering for GST, you must provide details about your business, including its legal name, trading name, address, and contact information.

 Step 4. Choose a GST Filing Period

You’ll need to choose a GST filing period when you register. You can file GST returns monthly, two-monthly, or six-monthly, depending on your business’s turnover.

 Step 5. Start Charging GST

Once registered for GST, you must start charging GST on your goods and services.

You should also keep track of the GST you pay on business expenses to claim back Input Tax Credits (ITCs).

2. GST RATES

In New Zealand, the standard GST rate is 15 per cent. This means that goods and services sold in New Zealand are subject to a 15 per cent GST charge which is included in the consumers’ price. However, there are some exceptions and exemptions to this rule. It’s important to note that some items may be zero-rated for GST, meaning they are still subject to GST, but the rate is 0 per cent. Examples of zero-rated items include exports, certain food items and some public transport services.

3. INPUT TAX CREDITS

As a registered business, you can claim back GST paid on business expenses, such as equipment purchases, rent, and utilities. These are known as Input Tax Credits (ITCs). However, you can only claim ITCs for expenses related to your business activities liable for GST.

By claiming back the GST paid on business expenses, your business can reduce its liabilities and improve its cash flow. Ensuring that all claims are accurate and supported by proper documentation is vital to avoid penalties or interest charges.

4. GST RETURNS Registered businesses must file regular GST

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Carol A Rigby, Chartered Accountant Email: carol@carolrigby.co.nz returns with the Inland Revenue Department (IRD). These returns detail the GST charged on sales and the GST paid on purchases. GST returns must be filed either monthly, twomonthly, or six-monthly, depending on your business’s turnover.

 Due Dates

The due date for filing a GST return depends on your filing frequency. For monthly filers, the due date is the 28th of the following month. For two-monthly filers, the due date is the 28th of the second month following the end of the taxable period. For sixmonthly filers, the due date is the 28th of the second month following the end of the taxable period.

 GST Calculations

To complete a GST return, you must calculate the GST on sales (output tax) and purchases (input tax). The difference between these two amounts is the GST payable to the IRD or the GST refund owed to you.

 Online Filing

GST returns can be filed online through the IRD’s website using their secure myIR portal. You can also file GST returns by mail or by visiting an IRD office.

 Late filing and penalties

If you fail to file a GST return on time, you may be subject to penalties and interest charges. The penalties and interest are based on the amount of GST owed and the length of time the return is overdue.

Source:TargetAccounting

Vector Crews Deserve Much Credit

No one wants a power cut, especially at a time of national emergency such as we have just experienced.

When a large tree fell across Point View Drive near the intersection with Mason’s Road during the recent storm, a crew from Vector worked in appalling conditions all day to clear the site, restore power and re-open the road.

Neighbours who witnessed the efforts of linesmen and others during this dangerous work spoke of their admiration and appreciation at a recent Point View Heritage Society committee meeting.

It’s very easy to feel that any power outage is too long, but those who do the work in such conditions deserve our thanks.

Jennifer Beck Howick

Vote No To Selling

RSA

Seven days’ notice to RSA members to vote to sell 25-29 Wellington Street is bizarre.

We have been waiting for twoand-a-half years for the rebuild to start.

We were promised a new purpose-built RSA plus a couple of upmarket apartments as an investment for the future. Total scam and someone needs to be held accountable.

I urge all financial members to attend the meeting Saturday, February 25 at 10am. Vote No. We deserve better.

M Hawkeswood Howick

WHAT CAN WE DO?

Most people would agree that we are experiencing something more than just a climate event.

Hale and Gabrielle have done their devastation to our nation. This follows on from Covid-19.

Now we have crop failures, an extra devastation on top of the Covid thing.

The war in Ukraine and Russia could explode any moment into an atomic conflict that would kill millions of innocent citizens.

Slash, the remnants left after pine forests have been harvested, have featured heavily in the news following the flooding and cyclone events, particularly on the East Cape. Photo RNZ

Forestry Owners Have To Be Accountable

What is so difficult about making forest owners responsible for the clean-up of slash?

They own the trees. Slash is part of the tree, therefore they own the slash. When slash leaves their property and damages other people’s property they, as owner of the slash, are responsible for the damage and clean-up.

If council and government won’t enforce this, there seems to be good grounds for a successful class action against the forest owners.

Derek Paterson Sunnyhills