The goods and services tax, the New Zealand equivalent of the value-added tax, is levied on most products and services. If a company is a VAT payer, it is registered and assigned a VAT number in NZ
Businesses, both foreign and local, are not automatically required to register for the GST or VAT. It is only applicable once the company has exceeded a certain annual threshold and only for some types of goods and services.
Obtaining the VAT number in New Zealand
when needed is easier with the help of a team of specialists, such as our NZ company formation agents
. In this article you can read more about the GST (VAT) number and will find answers to the common rates as well, however, when you need assistance for registration or answers to other, personalized questions, we encourage you to reach out directly to us.
New Zealand VAT registration
The VAT number in NZ is the New Zealand Business Number (NZBN) which is used to globally identify all companies registered in this country. This number is directly connected to the Companies Register as it is assigned when the company is first incorporated.
The number is linked to the most important company details
, such as the company’s trading name and its registered address. When other companies or individuals search your business, they will find these business details on the NZBN register.
Only a company can have a company number, or a VAT number in New Zealand, however, any business can gat the NZBN, including sole traders and partnerships.
The fact that the information included in the Companies Register is shared with the NZBN Register means that companies need to keep their information up-to-date. More on the requirements applicable to businesses regarding reporting can be provided upon request by our team of NZ company formation agents
The VAT number in New Zealand for foreign companies
Non-resident companies that supply goods or services in New Zealand
are also required to register for VAT purposes when their annual turnover is over the $60,000 a year threshold. This is the same threshold that applies to resident companies.
Once the company is registered for VAT purposes, and has a VAT number in NZ, it will pay the tax and make the needed filings with the Inland Revenue. Moreover, non-resident companies can claim back GST in some cases. Non-resident companies that provide remote services from outside the country to NZ residents may still be required to register. You can get in touch with our company formation experts in New Zealand if you provide these services in the country in order to find our if you qualify.
The VAT rates in New Zealand
The VAT or GST rates in New Zealand include a standard rate, applicable to certain types of goods and services, as well as other, reduced rates. Our team of company formation agents in New Zealand lists the most important details about this tax below:
• 15% the standard rate applicable to most types of goods and services;
• 0% the reduced rate applicable to some goods and services; these include exported goods, land transactions, certain financial and imported services, online sales, services performed outside NZ (in most cases), transport of people, and others;
• Exempt these are goods and services that are not subject to this tax at all; examples include financial services, the supply of fine metals, renting a residential dwelling and others;
• $60,000 the registration threshold; if your business earns more than this amount in 12 months you will have to start the registration process.
Company owners can choose how often they will file the returns. They can opt for monthly filings, every two months or every six months. The most suitable option depends on the size of the business. For example, in most cases, small businesses will opt to file the returns every 2 months.
Special types of registrations apply in case of certain types of businesses, such as branches in the country. You can reach out to us if you need details on the VAT number in NZ
Businesses that make less than $60,000 a year can opt for voluntary GST registration. It is important to note that once a business in New Zealand is registered for GST it will charge this tax to the customers, will file the mandatory returns, will pay the owed tax and will need to keep GST records. The refund is available to those businesses that paid more GST than they collected.
We provide complete assistance to business owners in the country who are just starting their own company or who have already registered their business and need assistance with various issues.