A New Zealand Tax Guide for Travellers 2024

Registration is also mandatory if a business charges GST for the goods or services sold. Under certain conditions, backdating a GST registration may be possible upon contacting the Tax Authorities. Xero is a cloud-based accounting software that can help you manage your GST easily and efficiently.

Cancelling registration

If a business realizes that, based on the above registration requirements, it would not have been mandatory for them to register, they may cancel their registration. To register for New Zealand GST, businesses can apply online through the Inland Revenue Department (IRD) website. The process is relatively straightforward, and businesses will receive a New Zealand GST number upon successful registration. The IVL applies to all visitors with a passport from either a visa-waiver country or a country where you have to apply for a visitor visa to visit New Zealand. The IVL costs NZ$35 and you will pay this either when you request your NZETA or when you apply for your Visitor Visa. There are two “tourist taxes” that visitors are expected to pay, one is mandatory for all visitors while the other depends on what type of visa you are on.

Book a demo of VATConnect with one of our experts.

Because GST is a tax on all goods and services, it will be applied to almost everything you purchase in New Zealand. accelerated depreciation for business tax savings That includes food, medication, equipment, going to the hairdressers, the doctors and even the activities you are likely to do as a traveller in New Zealand. We also go over whether it is necessary to tip in New Zealand, as well as advice for international travellers paying taxes for working in New Zealand. Once GST registered, businesses can manage and pay GST online using myGST — a section of the New Zealand Inland Revenue’s online service.

Cruise Arrival and Departure Tax

If making taxable supplies is not the principal purpose of the good or service, you cannot claim any GST. If the principal purpose of the good or service is for making taxable supplies, you can claim the full GST amount. Because businesses claim back their input GST, the GST inclusive price is usually irrelevant for business purchasing decisions, other than in relation to cash flow issues. Consequently, wholesalers often state prices exclusive of GST, but must collect the full, GST-inclusive price when they make the sale and account to the IRD for the GST so collected.

If you’ve bought goods from overseas, the supplier probably will not charge you GST unless they carry on a taxable activity in New Zealand. The amount of GST you claim (input tax) is subtracted from the amount of GST you charge (output tax) to calculate your tax to pay or GST refund. Appointing a tax representative is not mandatory for non-resident businesses. This article has been reviewed and approved by Robin, who is the co-founder of NZ Pocket Guide. With more than 15 years of experience in the New Zealand tourism industry, Robin has co-founded three influential tourism businesses and five additional travel guides for South Pacific nations.

Taxes You (Might) Have to Pay as a Tourist in New Zealand

1. For some special supplies, such as secondhand goods, you may still be able to claim a GST adjustment.
2. This lowers your GST due and can create a GST refund if there is a large purchase (e.g. a vehicle purchase).
3. These are the taxes you might be expected to pay as a tourist or international visitor to New Zealand, which we will go into more detail about in this New Zealand tax guide for travellers.

Requested and approved refunds are paid into a business’s bank account within 15 days. Non-resident GST-registered businesses will not need a New Zealand bank account to receive their refund. You can only claim GST on goods and services to the extent they’re used in your taxable activity to make taxable supplies. You cannot claim GST for supplies you use how to calculate your restaurant’s inventory turnover rate privately or to make exempt supplies.

Some rare services are exempt from GST and duty-free will offer items tax-free when landing in New Zealand from an international flight. Refunds in New Zealand will not be paid if they’re to be used to pay any other taxes owed. They will also not be paid if the Inland Revenue is waiting for the business to file an overdue GST return or if any information is missing from the bookkeeping journals application. If a business realises that, based on the previously stated registration requirements, it would not have been mandatory for it to register, it may cancel its registration. If businesses have a turnover of below NZD 60,000, voluntary registration is allowed in New Zealand.

Receipts can be used to show the New Zealand authorities that GST has been charged and paid. Businesses operating in New Zealand that add GST to the price of their goods or services must also register for GST. Applicable to the supply of certain domestic goods and services, e.g. hotel accommodation for more than 4 weeks. The Inland Revenue is responsible for the administration of the goods and services tax in New Zealand. Plus, for more information on work taxes, check out our guide to the New Zealand Work Tax System.