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Cook Islands increases VAT to 15%

  • VAT
  • 11 January 2014 | Richard Asquith

Cook Islands increases VAT to 15%

The New Zealand dependency of the Cook Islands will raise its standard VAT rate from 12.5% to 15% from 1 April 2014.

The dominant tourist industry will be allowed to make credit amendments going back to 1 November 2013 for any sales VAT.

The Cook Island’s VAT regime is similar to the OECD recommended model, and was introduced in 1997.  There is a VAT registration threshold of $30,000 per annum, and monthly VAT returns are due on the 20th of the month following the reporting period end.  There is an option for smaller business to report on a cash-basis instead of the invoice accruals method.

The Cook Islands is free to set its own economic policies.  It is only a protectorate of New Zealand in terms of defense and foreign policy.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.