{"id":33200,"date":"2023-01-04T15:53:00","date_gmt":"2023-01-04T15:53:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=33200"},"modified":"2023-01-05T11:49:26","modified_gmt":"2023-01-05T11:49:26","slug":"how-to-avoid-problems-with-gst-documentation","status":"publish","type":"post","link":"https:\/\/businessyield.com\/finance-accounting\/how-to-avoid-problems-with-gst-documentation\/","title":{"rendered":"How To Avoid Problems With GST Documentation","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n
Goods and services tax (GST) in New Zealand is essentially a tax imposed on all the goods and services directly sold to buyers and consumers in New Zealand. GST covers almost all goods and services. However, there are goods and services which are GST-exempt, and there are also zero-rated ones. <\/p>\n\n\n\n
If you have an overseas business and you\u2019re planning to sell to New Zealand customers, you might want to check this calculator<\/a> on how to compute the GST that you\u2019ll have to collect and remit. Border authorities can refuse to release your goods if it\u2019s not clear whether GST has already been collected or not.\u00a0\u00a0<\/p>\n\n\n\n You should register your business for GST transactions to avoid problems with documentation if you\u2019re a covered overseas business<\/a>. All businesses and persons involved in the sale of goods and services directly to New Zealand consumers that make an annual turnover of at least NZD$60,000 are required to register for GST payments. If you\u2019re not yet making a yearly turnover that meets the minimum threshold, you\u2019re not required to register for GST transactions.\u00a0<\/p>\n\n\n\n If you\u2019re not very sure whether your sales or gross revenues meet or exceed the minimum threshold, here are a few things you consider:<\/p>\n\n\n\n To avoid problems with GST documentation, you should have an understanding of what goods and services are covered by GST. You can check out information from Afirmo<\/a> and other similar sites to help you understand your obligations under New Zealand\u2019s GST on documentation and collection. Here are some of the basic rules and salient features of GST in New Zealand.<\/p>\n\n\n\n If your annual turnover meets or exceeds the minimum threshold, the person responsible for filing GST returns for your company should be the one to register for GST. You should call New Zealand Inland Revenue after registration so they can activate your account. They will then send you an email to help you set up your account password. You have to accomplish this within 30 minutes of receiving the email. <\/p>\n\n\n\n You must charge and collect a GST of 15% on all orders for your goods and services. This GST rate has to be imposed on the final price of your goods and services. It should include the product value, shipping expenses, and insurance costs. You can choose from two options on what method to follow for the collection of GST.<\/p>\n\n\n\n For importers, you\u2019ll only charge GST for imported goods that do not exceed NZD$ 1,000. For importations that exceed NZD$ 1,000, you let the border authorities do the collection and don\u2019t include this in your receipts.\u00a0\u00a0<\/p>\n\n\n\n For those exporting goods and services directly to businesses and buyers, you have to impose a 15% GST on the final sale price of all the goods and services that you sell. The final sale price should include shipping costs, insurance expenses, and service fees.\u00a0\u00a0<\/p>\n\n\n\n To avoid any problems with GST documentation, make sure that you always have additional documentation about the goods shipped to you. It would be a good business practice to have complete and updated information about the goods sent to you by your seller or supplier. <\/p>\n\n\n\n You would be required by customs officials to identify which items or goods in your shipment have been charged with and collected GST. They won\u2019t let go of your shipment if you have incomplete or unclear documentation, even if you show them a bill of lading<\/a>. You must show documentation that indicates GST has already been charged and paid for and which among those goods in your shipment have been collected.\u00a0<\/p>\n\n\n\n If you\u2019re a seller, you can provide a copy of the customer receipt. It has to indicate that GST has already been paid and collected. If you\u2019re an importer, you can show a copy of the commercial invoice for the purchase. You can also note that the GST has already been paid and collected in the comments section.<\/p>\n\n\n\n New Zealand\u2019s GST rules are straightforward. You must register for GST transactions if your annual turnover meets the threshold. You have to charge and collect GST on all covered goods. If you\u2019re an overseas seller, you should provide clear documentation to the border authorities, such as receipts or tax invoices. These should have complete information, including the final sale price and amount of GST charged and collected. Subsequently, you should remit the GST you collected not less frequently than each quarter.<\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"rendered":"Goods and services tax (GST) in New Zealand is essentially a tax imposed on all the goods and…\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":1,"featured_media":33202,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_jetpack_memberships_contains_paid_content":false,"jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[2931],"tags":[],"jetpack_publicize_connections":[],"yoast_head":"\n#1. Register For GST Transactions And Collections<\/span><\/h3>\n\n\n\n
#2. Understand What Is Covered By GST\u00a0<\/h3>\n\n\n\n
#3. Select A Documentation Method And Collect On Covered Orders\u00a0<\/h3>\n\n\n\n
#4. Update Customs On Shipping Documentation<\/h3>\n\n\n\n
Conclusion <\/h2>\n\n\n\n