GST Calculator for Goods and Services Tax

GST Calculator for Goods and Services Tax

You can always write to IRD and state the filing frequency you prefer if the filing frequency didn’t match you. So, you want to know the allocation of GST amount and price of the sneaker exclusive GST, but you do not know how to do so. You are Joe’s regular customer, and you have purchased a pair of sneakers at $74.75 in total (the price is GST-inclusive). Even if you didn’t meet the business turnover requirement, you could still register voluntarily for GST.

Persons or entities with annual revenue less than $60,000 do not have to register for GST.[6] This threshold has increased three times since the introduction of GST in 1986. Use our all in one GST calculator to find GST inclusive and exclusive prices, or the correct GST content of a product or service. Remember to file your GST return by the due date even though you have NIL return. Read through the sections in GST101A form fill in the amount for each box accordingly.

• When deciding whether you need to register for GST, always refer to the IRD website or talk to your tax lawyer.
• Provisional tax is just a way of pre-paying your annual tax bill in several instalments.
• You still have to report the zero-rated GST in your GST return.
• The Import Entry Transaction Fee (IETF) and the Biosecurity System Entry Levy (BSEL) will also be charged.

When GST is charged at 0%, these are called zero-rated supplies. These are different from exempt supplies, which do not attract GST to begin with. Some examples include exports, land sales and selling a going concern business. If you do not choose a taxable period when you register, the IRD will automatically assign you the two-monthly period that matches your balance date. This is the last day of an accounting year which, for most New Zealand businesses, is 31 March. Your business carries out a taxable activity when you supply (or intend to supply) goods or services for money (or another reward) on a continuous or regular basis.

Keep a record of all your invoices and expense receipts (and keep these records for seven years). Put aside any GST payments you receive to pay to Inland Revenue at return time. Remember — you’re just collecting GST on behalf of the government, and you’ll need to pass on that GST when you do your return. Two-monthly means more paperwork but can be easier to keep track of.

If you don’t deregister, you still have to keep filing returns.

If you run a business in New Zealand, you may need to collect Goods and Services Tax (GST) from your customers. This is the case regardless of whether you operate your business as a sole trader, contractor, partnership or company. This is usually 15%, however, it may be “zero-rated” at 0% in certain circumstances. It’s added to the price you paid for the goods plus shipping costs, and you may have to pay it before customs will release the shipment. You can generally claim the cost back when submitting a GST return.

Even though you do not collect any tax on the sale of zero-rated supplies, you still need to report these in your return. If you are the buyer, you can claim GST on expenses and purchases before paying for them. Xero does not provide accounting, tax, business or legal advice. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

When you’re done, follow the links in the answers for more details. One benefit of voluntary registration is you might be able to claim a GST refund. For example, if you pay GST but don’t earn much, you may be able to get your money back.

• If you are wanting to add GST, then the base would be the price without GST…
• There are few exemptions to items that do not incur this tax, these examples include rent on rental properties, financial services, precious metals and charitable donations.
• Foreign companies, with no fixed establishment in New Zealand, providing taxable goods or services to New Zealand customers may be required to GST register as a non-resident.

Six-monthly filing is only available if your turnover is less than $500,000 (although some exceptions apply), and it might be good if you don’t have a lot of expenses or invoices. On 1 October 2016, the taxation of digital (‘remote’) services supplied by offshore companies (non-New Zealand) to consumers based in New Zealand changed. With Deskera, you can easily apply the New Zealand GST tax rates to your transactions and generate a proper sales invoice. This rule does not apply to you if your taxable period ends on 31st March and 30th November. If your taxable period ends on the 31st March, then your due is on the 7th May, whereas the latter falls on 15th January. In this example, John has paid $3,900 worth of GST on the necessary items to complete the projects.

How do you work out the GST amount of a price?

You also don’t pay GST if your customer exports your goods within 28 days, even if your customer is in New Zealand. You still have to report the zero-rated GST in your GST return. A basic understanding of key tax types and levies will make your life much easier, whether you’re self-employed or a contractor, or running a small business. That knowledge will be helpful whether you outsource that work to experts or use accounting software yourself. Employers’ contributions to an approved superannuation fund (excluding foreign schemes) are subject to ESCT. This includes employer contributions to KiwiSaver (or other qualifying registered superannuation schemes).

How do I calculate and file my GST?

Customs duty is levied on some imported goods at rates generally ranging from 1% to 10%. If you paid more GST than you collected, you can get a GST refund from us. Whichever business task you’re tackling, we’ve got something to help — online tools, templates, quizzes and more. Test yourself on tax basics, from GST to tax forms, plus how to handle PAYE and KiwiSaver.

New Zealand: Update on bill including GST measures and dual-resident company tax changes

The effective FBT cost is intended to align with the receiving employee’s marginal tax rate. Where the NZD 22,500 threshold is breached, FBT must be returned on all unclassified benefits. Where only the NZD 300 threshold is breached, FBT needs to be returned only on those amounts. You do not have to register GST just because you start a business or organisation. Prices shown in shops and online include GST unless they say otherwise — the GST part of what you’ve paid is printed on your receipts.

It is obliged to comply with the New Zealand GST compliance rules and file regular returns. Once GST registered, businesses will receive a unique GST number, to be added to all tax invoices. Businesses must deregister within 21 days of ceasing to provide taxable supplies. They can also apply for a deregistration if they can show they have fallen permanently under the annual registration threshold. Zero-rated products and services are subject to 0% GST, whereas the exempt supplies are GST-free.

Instead of spending a tremendous amount of time on manual tasks, you can have more time for the things you love with Deskera. Also, you can specify your customers’ location meaning of allocate in english and charge the correct tax rate using the tax configuration feature in the system. Otherwise you have to file GST103 Report, if you’re liable for provisional tax.

In the third week, she worked for $85 + GST per hour for 40 hours, and in the last week, she worked for $90 + GST for 20 hours. In the example you see below, we have started with a base figure of $100. From that point, all we have to do is add the new found GST content ($15) to the base figure ($100) to get the new GST inclusive figure of $115. ” estimator to understand how much you might have to pay for commonly imported items. The Import Entry Transaction Fee (IETF) and the Biosecurity System Entry Levy (BSEL) will also be charged. The table below compares the required content of a debit note or credit note to the information required for SCI.