New Zealand

Turnover threshold

60,000 NZD

Standard VAT rate

15%

Measurement period

rolling 12 month period

New Zealand VAT for digital service providers

Where the customer is a New Zealand GST registered resident, no GST is due. Instead, the customer accounts for the tax in their GST return via the ‘reverse charge’ mechanism. The provider will have to seek proof that their customer is a tax payer. There is a fine for the resident New Zealand customer of NZ$ 50,000 if they continually attempt to represent themselves as a GST-payer.

List of digital services that are the subject of New Zealand VAT

The following services are liable to GST:

  • Streaming video, movies, music and gaming
  • Software
  • E-Books
  • Apps
  • Online webinars
  • E-learning, including webinars
  • Remote gambling
  • Subscriptions to online membership clubs
  • Subscriptions to online journals
  • Automated insurance.

VAT rates

The term “taxable supplies” refers to supplies of goods and services that are liable to GST. The GST rates are the standard rate of 15% and the zero rate (0%). Some specific supplies have an effective rate of 9% through the GST valuation rules.

Late — registration penalties.

Penalties are assessed for a range of GST offenses, including the failure to make GST payments by the due date.