Skip to product menu
close
  • Sales
    Press Space or Enter to display list of options
EXPLORE ALL PRODUCTS

Sales

 
CRM

Comprehensive CRM platform for customer-facing teams.

CRM
 
Bigin

Simple CRM for small businesses moving from spreadsheets.

Bigin
 
Forms

Build online forms for every business need.

Forms
 
SalesIQ

Live chat app to engage and convert website visitors.

SalesIQ
 
Bookings

Appointment scheduling app for consultations with customers.

Bookings
 
Sign

Digital signature app for businesses.

Sign
 
RouteIQ

Comprehensive sales map visualization and optimal route planning solution.

RouteIQ
 
Thrive

Complete loyalty and affiliate management platform.

Thrive
 
Voice

Cloud Contact Center Software for businesses.

Voice
 
Suites
CRM Plus

Unified platform to deliver top-notch customer experience.

CRM Plus

Marketing

 
Social

All-in-one social media management software.

Social
 
Campaigns

Create, send, and track targeted email campaigns that drive sales.

Campaigns
 
Forms

Build online forms for every business need.

Forms
 
Survey

Design surveys to reach and interact with your audience.

Survey
 
Sites

Online website builder with extensive customisation options.

Sites
 
PageSense

Website conversion optimization and personalisation platform.

PageSense
 
Backstage

End-to-end event management software.

Backstage
 
Webinar

Webinar platform for webcasting online webinars.

Webinar
 
Marketing Automation

All-in-one marketing automation software.

Marketing Automation
 
LandingPage

Smart landing page builder to increase conversion rates

LandingPage
 
Publish

Manage all your local business listings on a single platform.

Publish
 
SalesIQ

Live chat app to engage and convert website visitors.

SalesIQ
 
Sign

Digital signature app for businesses.

Sign
 
Thrive

Complete loyalty and affiliate management platform.

Thrive
 
Voice

Cloud Contact Center Software for businesses.

Voice
 
NEW
LeadChain

Sync, manage, and convert leads across channels seamlessly.

LeadChain
 
NEW
CommunitySpaces

Online community platform for individuals and businesses to grow their network and brand.

CommunitySpaces
 
Suites
Marketing Plus

Unified marketing platform for marketing teams.

Marketing Plus

Commerce and POS

 
Commerce

eCommerce platform to manage and market your online store.

Commerce

Service

 
Desk

Helpdesk software to deliver great customer support.

Desk
 
Assist

Remote support and unattended remote access software.

Assist
 
Lens

Interactive remote assistance software with augmented reality.

Lens
 
FSM

End-to-end field service management platform for service businesses.

FSM
 
SalesIQ

Live chat app to engage and convert website visitors.

SalesIQ
 
Voice

Cloud Contact Center Software for businesses.

Voice
 
Solo

The all-in-one toolkit for solopreneurs.

Solo
 
Bookings

Appointment scheduling app for consultations with customers.

Bookings
 
Suites
Service Plus

Unified platform for customer service and support teams.

Service Plus

Finance

 
Books

Powerful accounting platform for growing businesses.

Books
 
FREE
Invoice

100% Free invoicing solution.

Invoice
 
Expense

Effortless expense reporting platform.

Expense
 
Inventory

Powerful stock management and inventory control software.

Inventory
 
Billing

End-to-end billing solution for your business.

Billing
 
Checkout

Collect payments online with custom branded pages.

Checkout
 
NEW
Payroll

Payroll software with automated tax payments and filing.

Payroll
 
Solo

The all-in-one toolkit for solopreneurs.

Solo
 
Practice

Practice management software for accounting firms.

Practice
 
Sign

Digital signature app for businesses.

Sign
 
Commerce

eCommerce platform to manage and market your online store.

Commerce
 
Suites
Finance Plus

All-in-one suite to manage your operations and finances.

Finance Plus

Email and Collaboration

 
Mail

Secure email service for teams of all sizes.

Mail
 
Meeting

Online meeting software for all your video conferencing & webinar needs.

Meeting
 
Writer

Word processor for focused writing and discussions.

Writer
 
Sheet

Spreadsheet software for collaborative teams.

Sheet
 
Show

Create, edit, and share slides with a sleek presentation app.

Show
 
Notebook

Beautiful home for all your notes.

Notebook
 
Cliq

Stay in touch with teams no matter where you are.

Cliq
 
Connect

Employee experience platform to communicate, engage, and build positive employee relations.

Connect
 
Bookings

Appointment scheduling app for consultations with customers.

Bookings
 
TeamInbox

Shared inboxes for teams.

TeamInbox
 
WorkDrive

Online file management for teams.

WorkDrive
 
Sign

Digital signature app for businesses.

Sign
 
Office Suite

Powerful collaborative work platform for teams.

Office Suite
 
Office Integrator

Built in document editors for web apps.

Office Integrator
 
ZeptoMail

Secure and reliable transactional email sending service.

ZeptoMail
 
Calendar

Online business calendar to manage events and schedule appointments.

Calendar
 
Learn

Knowledge and learning management platform.

Learn
 
Voice

Cloud Contact Center Software for businesses.

Voice
 
ToDo

Collaborative task management for individuals and teams.

ToDo
 
Tables

Work management tool to connect people, processes, and information.

Tables
 
FREE
PDF Editor

Collaborative online PDF editing tool.

PDF Editor
 
Suites
Workplace

Application suite built to improve team productivity and collaboration.

Workplace

Human Resources

 
People

Organize, automate, and simplify your HR processes.

People
 
Recruit

Intuitive recruiting platform built to provide hiring solutions.

Recruit
 
Expense

Effortless expense reporting platform.

Expense
 
Workerly

Manage temporary staffing with an employee scheduling solution.

Workerly
 
NEW
Payroll

Payroll software with automated tax payments and filing.

Payroll
 
Shifts

Employee scheduling and time tracking app.

Shifts
 
Sign

Digital signature app for businesses.

Sign
 
Suites
People Plus

Comprehensive HR platform for seamless employee experiences.

People Plus

Security and IT Management

 
Creator

Build custom apps to simplify business processes.

Creator
 
Directory

Workforce identity and access management solution for cloud businesses.

Directory
 
FREE
OneAuth

Secure multi-factor authenticator (MFA) for all your online accounts.

OneAuth
 
Vault

Online password manager for teams.

Vault
 
Catalyst

Pro-code platform to build and deploy your apps.

Catalyst
 
Toolkit

Complete resource for any admin-related lookup queries.

Toolkit
 
Lens

Interactive remote assistance software with augmented reality.

Lens
 
Assist

Remote support and unattended remote access software.

Assist
 
QEngine

Test automation software to build, manage, execute, and report testcases.

QEngine
 
NEW
RPA

Automate manual, tedious, and repetitive tasks easily.

RPA

BI and Analytics

 
Analytics

Modern self-service BI and analytics platform.

Analytics
 
Embedded BI

Embedded analytics and white label BI solutions, tailored for your needs.

Embedded BI
 
DataPrep

AI-powered data preparation service for your data-driven organization.

DataPrep
 
NEW
IoT

Harnessing IoT analytics for real-time operational intelligence.

IoT

Project Management

 
Projects

Manage, track, and collaborate on projects with teams.

Projects
 
Sprints

Planning and tracking tool for scrum teams.

Sprints
 
BugTracker

Automatic bug tracking software for managing bugs.

BugTracker
 
Solo

The all-in-one toolkit for solopreneurs.

Solo

Developer Platforms

 
Creator

Build custom apps to simplify business processes.

Creator
 
Flow

Automate business workflows by creating smart integrations.

Flow
 
Catalyst

Pro-code platform to build and deploy your apps.

Catalyst
 
Office Integrator

Built in document editors for web apps.

Office Integrator
 
ZeptoMail

Secure and reliable transactional email sending service.

ZeptoMail
 
QEngine

Test automation software to build, manage, execute, and report testcases.

QEngine
 
Tables

Work management tool to connect people, processes, and information.

Tables
 
NEW
RPA

Automate manual, tedious, and repetitive tasks easily.

RPA
 
NEW
Apptics

Application analytics for all apps.

Apptics
 
Embedded BI

Embedded analytics and white label BI solutions, tailored for your needs.

Embedded BI
 
NEW
IoT

Build, deploy, and scale IoT solutions for connected businesses.

IoT
 
DataPrep

AI-powered data preparation service for your data-driven organization.

DataPrep

IoT

 
NEW
IoT

Low-code IoT platform and solutions for connected businesses.

IoT

Search Result

 
CRM Plus

Unified platform to deliver top-notch customer experience.

Try now
CRM Plus
 
Service Plus

Unified platform for customer service and support teams.

Try now
Service Plus
 
Finance Plus

All-in-one suite to manage your operations and finances.

Try now
Finance Plus
 
People Plus

Comprehensive HR platform for seamless employee experiences.

Try now
People Plus
 
Workplace

Application suite built to improve team productivity and collaboration.

Try now
Workplace
 
Marketing Plus

Unified marketing platform for marketing teams.

Try now
Marketing Plus
 
All-in-one suite

Zoho One

The Operating System for Business

Run your entire business on Zoho with our unified cloud software, designed to help you break down silos between departments and increase organizational efficiency.

TRY ZOHO ONE
Zoho One
Zoho Marketplace

With over 2000 ready-to-use extensions across 40+ categories, connect your favorite business tools with the Zoho products you already use.

EXPLORE MARKETPLACE
Marketplace
Skip to main content
  • HOME
  • Business
  • Understanding GST: A guide for Kiwi small businesses

Understanding GST: A guide for Kiwi small businesses

  • Last Updated : July 2, 2024
  • 232 Views
  • 4 Min Read
close up photo of a post-it note saying "file GST!" on a noticeboard

If you live in New Zealand or have travelled to the country, you’ve likely paid GST while going about your everyday life. Goods and Services Tax (GST) was introduced in New Zealand in 1989. Since then, most products and services sold and purchased in the country have been subject to GST. The current rate of GST is 15% in New Zealand, making it one of the highest taxed countries in the OECD. It’s also a large contributor to New Zealand’s GDP.

GST is only applicable for businesses, so if you’re considering starting a business, it’s a good idea to look into GST and make sure you understand your responsibilities. In this post, we’ll break down the basics of GST for New Zealand businesses. 

Every business that earns more than $60,000 a year should register for GST. Smaller businesses can do so if they choose to.

How GST works in New Zealand

As a seller, you collect GST from customers for goods and services you sell. When you buy from your suppliers, you pay them GST. At the end of your taxable period, if you’ve collected more GST than you’ve paid, you will need to pay the difference to the Inland Revenue Department. If you’ve paid more than you’ve collected, then the Inland Revenue Department will pay you a GST refund.

When you’re selling, GST is 15% of the unit price of every product or service. If you’re buying and the price includes GST, you can multiply the cost by 3 and then divide by 23 to calculate the exact amount of GST you’ve paid. For any GST-applicable sale or purchase over $50, you should issue or receive an invoice. For sales or purchases below $50, a receipt would suffice. As with the case of all business records, you should retain your invoices and receipts for at least 7 years. You should maintain GST records in Māori or English, unless the Inland Revenue Department approves your maintaining records in a different language.

GST should be charged on:

  • Business services such as legal consultation, design work, plumbing, and painting
  • Business-related sales or purchases such as office supplies and furniture
  • Experiences such as tours and wine tastings
  • All imported goods

Some type of goods and services are charged GST at 0%. This means that people can still list those expenses in their GST filing but they won’t necessarily pay a tax for those expenses. Examples include:

  • Sale and purchase of land
  • Sale and purchase of ongoing concerns, such as a business or any machinery that will continue operating despite a change of ownership
  • Goods exported for sale

GST shouldn't be charged on:

  • Any sales made by unregistered individuals. GST is only applicable for businesses.
  • Sale and purchase of private property
  • Rent, interest, mortgage, and other banking or finance payments made or received
  • Donations to not-for-profit organisations 

GST invoices

Every GST invoice should contain the phrase, ‘tax invoice’, the business' registered or trading name, the seller’s GST number, the date of issue, description of goods and services provided, and the total amount payable. All invoices should always be in New Zealand dollars.

GST-inclusive invoices

If the price is less than $1,000, the invoice should declare that the price includes GST. If the price is over $1,000, the invoice should also include the names and addresses of both parties and an itemised description of the goods or services sold. Additionally, you should either show the GST value, the GST-exclusive price, and GST-inclusive price, or show the GST-inclusive price and declare that GST is included and charged at the standard rate.

GST filing frequency

Also called your taxable period, you can choose one of the following options to file your GST.

Monthly: Every 30-31 days, after you’ve issued all your invoices or have received payment
Two-monthly: Every 60-62 days, after you’ve issued all your invoices or have received payment

If you don’t choose an option, the Inland Revenue Department will choose the two-monthly option by default. You can contact the Department if you wish to change the frequency, and if approved, they’ll update you.

If your overall sales was less than $500,000 in the last 12 months or if you believe that it will be less than $500,000 in the next 12 months, you can choose to file your GST returns every six months, instead.

Adjusting GST in invoices

If you've issued an invoice and the price changes because you or the buyer want to make an adjustment, you can do so by issuing a credit or debit note.

Credit note: If the price decreases after you've issued an invoice, you issue a credit note to the customer. This can happen if you've accidentally overcharged the customer or if the customer decides to return products. It's when the seller owes money to the buyer.

Debit note: If the price increases after you've issued an invoice, you issue a debit note to the customer. This can happen if you've accidentally undercharged the customer or if the customer decides to add purchase products in the same sale. It's when the buyer owes money to the seller.

Parting thoughts

GST is an important consideration in many common business transactions. Understanding how it works can help you make business decisions—from your pricing strategy to your suppliers. If you haven't filed GST before, have a look at this comprehensive guide from the Inland Revenue Department. It outlines what to include and how exactly you can file your claims. If you're unsure if GST applies to any of your business transactions, contact the Inland Revenue Department directly or consider speaking to a tax agent.

Related Topics

Leave a Reply

Your email address will not be published. Required fields are marked

The comment language code.
By submitting this form, you agree to the processing of personal data according to our Privacy Policy.

You may also like