GST stands for Goods and Services Tax, which is a value-added tax or consumption tax for goods and services consumed in New Zealand). It is a tax added to the price of most goods and services, including imports, and is designed to be a broad-based system with few exemptions). GST was introduced on 1 October 1986 by the Minister of Finance, Roger Douglas, at a rate of 10% on goods and services, and it replaced existing sales taxes for goods and services). Currently, the GST rate in New Zealand is 15% .

GST-registered organizations and individuals pay GST only on the difference between GST-liable sales and GST-liable supplies, meaning they pay GST on the difference between what they sell and what they buy: income less expenditure). Businesses exporting goods and services from New Zealand are entitled to "zero-rate" their products, which means they charge GST at 0%, and this permits the business to claim back the input GST, but the eventual, non-New Zealand based consumer does not pay the tax).

If you sell goods or services, you might need to register for GST, and you may be charged penalties if you dont register when you need to. Whether youre a sole trader, contractor, in partnership, or a company, as soon as you think you’ll earn more than $60,000 in 12 months, you must register for GST. GST-registered individuals and organizations can manage and pay GST online using myGST, a new section of Inland Revenue’s myIR service.

In summary, GST is a tax added to the price of most goods and services consumed in New Zealand, and it is designed to be a broad-based system with few exemptions. GST-registered individuals and organizations pay GST only on the difference between GST-liable sales and GST-liable supplies, and businesses exporting goods and services from New Zealand are entitled to "zero-rate" their products. If you sell goods or services, you might need to register for GST, and you can manage and pay GST online using myGST.