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Like India, New Zealand has a similar policy for taxes and that is Goods and Service Tax (GST). There are few requirements and terms for filing GST in New Zealand that are as below.

What is GST?

Goods and Service Tax is a tax liability that is implied to all the goods and service providers that are indulging in taxable activities in New Zealand. It is also implied on most of the imported goods and some imported services. A rate of 15% is charged as GST in New Zealand.

When does one need to register for GST?

On what GST is being charged?

In New Zealand, government charges GST on the supply of most of the goods and services including the following,

However, businesses that supply the items which are not registered under GST or exempted under GST, people working for salary and wages, or selling a private property occasionally do not attract GST.

How to register for GST in New Zealand?

It takes the following steps in order to register for GST in New Zealand as per their official website.

What to expect after registration?

In New Zealand, a business or an individual can opt for cancelling its GST registration in 21 days, if they decide on not incur any taxable activities for the next 12 months.

Requirements of New Zealand Businesses:

Setting up a business is a challenge as it requires lots of documentation and a bunch of approvals from the concern Government departments, which also take a good amount of time. Unlike such scenarios, setting up a business in New Zealand is quite simple and easy. In New Zealand, there are three types of business entities that are a sole trader, partnership and limited liability companies.

How to start a business?

To start a business in New Zealand, an individual needs to adhere to the registration process as stated below.

  1. One has to register the business on the company’s official website.
  2. A business can either use its existing login credentials or else has to create a new login ID.
  3. After registering, one needs to check and reserve the availability of the desired company name.
  4. Then, the business automatically gets a New Zealand Business Number (NZBN) which is a unique identifier in New Zealand that also boosts the interactions and communication process with the Government and other business as well.

After setting up a business, take the following formalities into consideration:

GST in New Zealand

Financial requirements:

A business in New Zealand obligates certain financial requirements like,

  • Taxes: In New Zealand, a company is liable to pay a 28 per cent tax on its profit, or they can also distribute some part of it to shareholders as dividends, who pay taxes individually on their personal income.
  • Record keeping: As per the Government’s official site, a business must record all the transactions like banking information, proof of income that includes cash income and expenses, and cashbooks for at least past 7 years.

To know more about GST in New Zealand and related services contact Meru Accounting today!

One of our friendly executives will assist you for further requirement.

ANALYSIS OF BOOKKEEPING IN NEW ZEALAND

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