GST Claim Back Services New Zealand

In New Zealand, businesses can claim back the Goods and Services Tax (GST) they pay on certain expenses related to their business activities. To claim back GST, businesses need to keep proper records of their purchases and expenses, as well as maintain tax invoices for GST-claimable items. The process can be complex, so many businesses seek assistance from GST claim back services to ensure compliance and maximize their GST refunds.

Raw Materials and Production

• Raw materials for manufacturing
• Packaging materials for products
• Shipping supplies (e.g., boxes, packing tape)
• Equipment and machinery for production
• Rent for production facilities
• Utility bills for production facilities (electricity, gas, etc.)

Advertising and Marketing

• Advertising expenses for promoting products
• Marketing expenses (e.g., social media advertising)
• Business-related subscriptions (e.g., magazines, online publications)
• Membership fees for professional organizations

Business Travel and Legal Expenses

• Travel expenses for conferences or trade shows
• Legal fees for contracts or agreements
• Accounting fees for tax preparation or financial statements
• Business-related software and apps
• Cloud-based storage and computing services
• Business-related mobile phone expenses
• Business-related internet and data expenses
• Web hosting and domain registration fees
• Payment processing fees for credit card transactions

Shipping and Customs

• Freight forwarding services
• Freight insurance for shipments
• Customs brokerage fees for importing goods

Design and Creatives

• Packaging design and branding services
• Website design and development services
• Search engine optimization (SEO) services
• Copywriting and content creation services
• Social media management services
• Photography and videography services for marketing materials
• Printing services for marketing materials

Facilities and Maintenance

• Office cleaning services
• Pest control services for business facilities
• Equipment maintenance and repair services
• Security services for business facilities
• Employee background check services

Employee-related Expenses

• Employee training and development courses
• Employee wellness programs
• Employee benefits (e.g., health insurance, retirement plans)
• Employee uniforms and workwear
• Employee safety equipment and gear
• Employee tools and supplies
• Employee recognition and awards programs
• Employee meal and refreshment expenses
• Employee transportation expenses (e.g., fuel, parking)
• Employee relocation expenses

Legal and Intellectual Property

• Business-related legal settlements and judgments
• Business-related research and development expenses
• Business-related patents and trademarks
• Business-related copyrights
• Business-related licenses and permits
• Regulatory compliance consulting services

Consulting and Professional Services

• Business-related software licenses and subscriptions
• Professional coaching and consulting services
• HR and employment law consulting services
• Executive coaching and leadership development services
• Corporate event planning services
• Trade show booth rentals and expenses

Corporate Social Responsibility

• Business-related charitable donations
• Corporate social responsibility (CSR) reporting and consulting services

Miscellaneous Business Expenses

• Business-related gift cards or vouchers
• Gift baskets or hampers for business clients or partners
• Business-related travel insurance
• Business-related visa and immigration services
• Business-related translation and interpretation services
• Business-related language courses
• Business-related event tickets
• Employee team-building events
• Office security equipment (e.g., cameras, alarms)
• Energy-efficient lighting and equipment upgrades
• Water-saving equipment and fixtures
• Waste disposal and recycling services
• Green cleaning products and services
• Renewable energy credits and offsets

Organizational Development and Performance Management

• Business-related coaching and mentoring services
• Business-related mediation and conflict resolution services
• Business-related organizational development services
• Business-related performance management services

Please note that the eligibility for claiming back GST on these expenses may depend on the specific rules and regulations set by the New Zealand Inland Revenue Department, so it's essential to consult with a qualified tax advisor to ensure compliance.

Act of New Zealand GST

The Goods and Services Tax Act 1985 (GST Act) is the legislation that governs GST in New Zealand. The GST Act sets out the following:

The definition of GST
The goods and services that are subject to GST
The GST rate
The GST registration requirements
The GST invoicing requirements
The GST return and payment requirements
The GST claims and refund process
The GST compliance requirements

The GST Act also includes a number of special rules for certain goods and services, such as food, housing, and financial services

GST Registration Requirements

Businesses that have a turnover of NZ$75,000 or more in a 12-month period are required to register for GST. There are some exceptions to this rule, such as for businesses that sell only GST-exempt goods and services.

GST Invoicing Requirements

Once a business is registered for GST, it must issue GST invoices to its customers for all taxable goods and services that it sells. GST invoices must include the following information:

• The supplier’s GST registration number
• The customer’s GST registration number (if applicable)
• The date of the invoice
• A description of the goods or services sold
• The quantity of goods or services sold
• The price of the goods or services sold, excluding GST
• The amount of GST charged

GST Return and Payment Requirements

GST returns must be filed quarterly, by the 28th day of the month following the end of the quarter. GST payments must also be made quarterly, by the same date as the GST return is due.

GST Claims and Refund Process

Businesses can claim back GST on business expenses, such as purchases of goods and services, travel expenses, and rent. GST refunds can be claimed on GST returns.

GST Compliance Requirements

It is important for businesses to comply with GST legislation to avoid penalties and interest. Businesses should keep accurate records of their GST transactions and file their GST returns on time.

The GST Act and the Digital Economy

The GST Act has been updated to reflect the changing nature of the economy, particularly the growth of the digital economy. For example, the GST Act now applies to digital goods and services, such as software, streaming services, and online advertising.

The GST Act and Social Equity

The GST Act is designed to be fair and equitable. For example, the GST rate on food is zero, and there are special GST rules for low-income families.

Example of GST NZ

Here are some examples of how GST is applied in New Zealand:

• When you buy a loaf of bread at the supermarket, you will not pay GST, because food is exempt from GST.
• When you buy a meal at a restaurant, you will pay GST on the price of the meal, including the GST that the restaurant has paid on its food and beverage costs.
• When you buy a new car, you will pay GST on the price of the car, including the GST that the car dealership has paid on its costs.
• When you buy a digital subscription to a streaming service, you will pay GST on the subscription fee.

NZ Tax Calculator

The “NZ Tax Calculator” typically refers to an online tool or software designed specifically for individuals or businesses in New Zealand to estimate their taxes. This calculator aids in computing various taxes such as income tax, Goods and Services Tax (GST), and other relevant taxes based on the user’s input of income, deductions, expenses, and other financial details.

The purpose of an NZ Tax Calculator is to provide a quick, user-friendly method for individuals or businesses to get an approximate idea of their tax liabilities or potential refunds without the need for manual calculations or complex formulas. These calculators often factor in the current tax rates, exemptions, thresholds, and specific regulations applicable in New Zealand.

Users might utilize an NZ Tax Calculator for various reasons:

1. Estimation of Tax Liabilities: Individuals can input their income, deductions, and other financial details to get an estimate of their tax obligations.
2. Financial Planning: It helps in planning finances by estimating taxes beforehand, allowing individuals or businesses to budget accordingly.
3. Understanding Tax Implications: Users can gain insights into how different financial decisions or scenarios might impact their tax liabilities.
4. Filing and Compliance: While not a substitute for official tax filing, these calculators can assist users in preparing for tax filings by providing estimates.
5. Quick Assessments: It allows for swift evaluations of tax obligations, particularly useful during tax seasons or while considering financial decisions.

An NZ Tax Calculator typically asks for details such as income sources, expenses, deductions, tax credits, and other relevant financial information to generate an approximate tax liability or refund amount.

Calculating GST on imports NZ

Calculating Goods and Services Tax (GST) on imports in New Zealand involves determining the tax payable on goods brought into the country from overseas. When goods are imported into New Zealand, they are subject to GST, which is a consumption tax.

Here’s an overview of how GST is typically calculated on imports in NZ:

1. Imported Goods: When goods are brought into New Zealand from abroad, GST is usually levied on the combined value of the goods, freight costs, insurance, and any customs duties (if applicable).
2. GST Rate: As of my last update in January 2022, the GST rate in New Zealand was 15%. This rate is applied to the combined value mentioned earlier to calculate the GST payable on the imported goods.
3. Customs Valuation: The value on which GST is calculated is based on the Customs value of the imported goods. This value includes the cost of the goods, any additional costs like shipping and insurance, and any applicable customs duties.
4. GST Payment: The GST amount calculated on the imported goods needs to be paid to the New Zealand Customs Service. Importers or their representatives are typically responsible for paying this GST amount to Customs when the goods enter the country.
5. GST Registration: Importers reaching a certain threshold of taxable turnover might need to register for GST with the Inland Revenue Department (IRD) and manage GST payments regularly.
6. Exceptions and Exemptions: Some goods might be exempt from or subject to different GST rates due to specific circumstances, exemptions, or special schemes. Importers should be aware of these exceptions.

Calculating GST on imports in New Zealand requires an understanding of the value of the goods and associated costs, as well as compliance with New Zealand’s customs and tax regulations. Importers often work with customs brokers or tax professionals to ensure accurate calculations and compliance with GST obligations on imported goods.