New Zealand non-residents to register for GST April 2014

Non-resident taxable persons will be required to register for New Zealand Goods & Services Tax from 1 April 2014 if they are providing local taxable supplies.

The amendments to the existing 1985 GST Act provide a range of criteria for businesses to meet to register for GST:

• They are taxable persons in the country of residency
• They are providing annual GST taxable supplies of over NZ$ 60,000

For businesses or taxable persons which do register, they will have to comply with the regular indirect tax compliance requirements.  This includes:

• New Zealand GST charged at 15%
• Monthly GST returns if turnover greater than NZ$ 24 million
• Bi-Monthly GST returns if turnover greater than NZ$ 500 thousand but lower than NZ$ 24 million
• Bi-Annual GST returns if turnover less than NZ$ 500 thousand
• The right to offset allowable GST inputs incurred as part of the providing the taxable supplies