GST Guide: Frequently Asked Questions

DVA is here to assist you with your GST needs, from registration to preparation and filing. Feel free to reach out to our team for help and ensure your business stays compliant and efficient!

What is GST?

Goods and Services Tax (GST) is a tax added to the price of goods and services sold in New Zealand. The current GST rate is 15%.

Who needs to register for GST?

  • Your business turnover exceeds $60,000 in any 12-month period, or you expect your business turnover to exceed $60,000 in the next 12 months.
  • You carry out a taxable activity and you add GST to the price of the goods or services you sell.

DVA can assist you with the GST registration process, ensuring everything is done correctly and efficiently. Contact us for GST registration.

How often do I need to file GST returns?

Your filing frequency depends on your turnover:

  • Monthly: Turnover of more than $24 million.
  • Two-monthly: Turnover between $500,000 and $24 million.
  • Six-monthly: Turnover less than $500,000.

How do I calculate the GST amount?

GST is calculated as 15% of the sale price (excluding GST). For example, if an item is priced at $100 (excluding GST), the GST would be $15, making the total price $115.

Can I claim back GST?

GST registered businesses can claim back the GST they pay on business expenses. 

How do I deregister for GST?

You can deregister for GST if your turnover falls below the threshold, your business closes, or you sell your business. You must file a final GST return and pay any outstanding GST.

What are the penalties for late GST filing?

Penalties for late filing can include:

  • A late filing penalty of $50 if you're on the payment basis and $250 if you're on the invoice or hybrid basis.
  • For late payments, a penalty charge of 1% of the GST amount owed. This increases to 4% of the total amount after 7 days and 1% for every month after that.
  • For under-declaring, penalties can range from 20-150% of the amount you owe, depending on how serious the issue is.

What are the common mistakes to avoid with GST?

Common mistakes include:

  • Failing to register on time.
  • Incorrectly calculating GST.
  • Not keeping adequate records.
  • Missing filing deadlines.

Can DVA help me manage my GST?

Yes, we help plenty of our clients manage their GST obligations, ensuring compliance and accuracy. Contact us if you need assistance with your GST.

Where can I get more information on GST?

You can visit the Inland Revenue website or get in touch with us for detailed guidance on GST compliance.