Should you be registering for GST?

Have you started a small business and want to know more about your GST options? Well, look no further. 

GST (Goods and Services Tax) is a tax that is added to most goods and services usually at a rate of about 15%. If you sell goods or services then you may want to look into registering for GST which would mean you will start charging your customers GST. 

In short, once you add GST to your current prices, then pass the GST onto IRD and then you can claim back the GST through expenses. 

You must register for GST if: 

  • You are an entity and;
  • You carry out a taxable activity and your turnover was at least $60,000 in the last 12 months, or you expect it will be at least $60,000 in the next 12 months
  • You carry out a taxable activity and you add GST to the price of the goods or services you sell

Once you register for GST, you can choose how often you file your GST returns, which is also known as filing frequency and how you record your GST, which is your accounting basis. 

So you’ve registered for GST, now what do you do? Firstly, make sure you are charging GST to your customers, make sure you’re also filing your GST returns, pay any GST you owe to IRD, and be sure to keep records of your GST just to be safe. If you collected more GST than you paid, you pay the balance to IRD when you file your GST return. And if you paid more GST than you collect then you could score yourself a GST refund from IRD, bonus!

Don’t hesitate to give us a call on 04 974 5056 if you want to know more about choosing your GST filing frequency, your GST accounting basis or if you have a special type of GST to register. We are always here to help!

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