Effective since 1st of October 2016. The name of the tax: goods and services tax (GST).
In New Zealand, the term «digital services» is included in the broader notion «remote service» are where, at the time of the performance of the service, there is no necessary connection between the physical location of the customer and the place where the services are performed.
VAT Standard rate
The standard VAT rate in New Zealand in 2022 is 15%.
VAT Reduced rate
There is no reduced rate established.
VAT calculation peculiarity
VAT= Total revenue * 0.15
When the sales exceed NZD $60,000 in the last 12 months or are expected to be more than NZD $60,000 in the next 12 months.
GST isn’t charged on supplies if a foreign company sold to customers that are registered for GST in New Zealand. GST is charged to every customer unless they have:
- Indicated they’re GST-registered, or
- Provided you with their New Zealand GST registration number or business number
A foreign company can choose to treat the supply as zero-rated (taxed at a rate of zero percent). This may let a foreign company claim back New Zealand GST costs incurred in making zero-rated supplies to GST-registered businesses.