GST is a tax added to the price of most products and services in New Zealand. Every business must register GST if the annual turnover was, or is going to be over $60,000 in a 12-month period. If your annual turnover is less than $60,000, you can choose to register your GST voluntarily but it’s not compulsory.
When your business has been registered, you can claim GST on products and services when you buy for your business. You can also charge GST on the products and services that you sell. But bear in mind, GST is a goods and services tax that you are collecting on behalf of the government. Therefore, a good practice is to set the tax aside as you earn it so that you don’t end up spending it and coming up short when filing your GST return.
Whether your annual turnover is below or above $60,000, registering for GST can be beneficial to do. One of the potential benefits is that if a GST registered business has high expenses but little income, they might be able to claim a GST refund.
When you register GST, you can also choose your GST filing frequency (how often you file GST) and your GST accounting basis (how you choose to record your GST).
1. GST Filing Frequency
Regarding the GST Filing frequency, you have three options:
- Monthly
- Two-Monthly
- Six-Monthly
2.Your Accounting Basis
Regarding the accounting basis, you have three options for recording your GST:
- Payment Basis
- Invoice Basis
- Hybrid Basis
Below is a list of the things you will need to do when your company becomes GST registered.
- You will need to charge GST on the goods and services that are provided to your clients.
- You will need to complete the IRD GST returnon time.
- If you owe GST to IRD, you will also need to pay it before the due date.
- You will also need to keep related GST Records.
Lastly, you will need to make sure that all GST information for your business is recorded accurately. Not all sales and expenses for a company are GST inclusive, because of this, it is of the utmost importance that the bookkeeper has an in-depth knowledge of all GST accounting processes.
In need of a professional accountant for GST returns to help you through your calculations? At Premium Accounting Solution, we provide a wide range of tax compliance services and are well-versed in GST returns in New Zealand. We can help you make sure that all your GST related sales or expenses have been calculated in the right place, and that your bookkeeping is accurate and compliant with New Zealand GST regulations.
While some business owners may choose accounting software to record all their transactions, we can also provide our clients with an Excel GST worksheet designed by us, to help you calculate your GST efficiently. If you want to file GST returns by yourself, we also provide the related training, which can help you learn how to file GST returns by using accounting software or through myIR. Book an appointment with us today and manage your GST responsibilities with the team at Premium Accounting Solution!
Learn more service: GST Return Filing Training
