Goods and Services Tax (GST) Policy in New Zealand
All goods supplied by Spectronics New Zealand to customers in New Zealand are subject to a Goods and Services Tax.
Goods and Services Tax (GST) is New Zealand’s main type of tax apart from Income Tax. It is an indirect tax, which businesses (including retailers) charge as part of the cost of goods and services that they supply. As at September 2003, the GST rate is 12.5%.
When a GST registered business buys goods or services from its suppliers, it can claim a credit for the GST the suppliers charge on these purchases. However, end-user consumers cannot claim a deduction for GST in this way. The effect of this is that the final consumer of any product or service pays 12.5% GST on its cost.
GST is charged on virtually all goods and services supplied in New Zealand, except for rental of residential property, financial services such as mortgages, loans and investments, and the sale of a business that is capable of being a going concern.
If a business is conducting a taxable activity in New Zealand they must register for GST if their annual turnover exceeds $40,000.
Turnover is the total value of supplies made (excluding GST) for all taxable activities. In a normal business it will be the total value of sales and income, including any grants or subsidies received and barter transactions made.
For more information about the GST applicable in New Zealand visit the Inland Revenue Department website.