Taxation in Direct Selling


G.S.T. - Goods & Services Tax

More on this topic >>>					How GST Works Registering - Thresholds and options GST and Importing GST for Distributors GST Returns Frequency for filing GST Accounting Basis - Options available Calculating GST for Returns Due Dates for filing GST Returns GST Guide - (1.7mb pdf)




New Zealand like many countries has a value added tax which is known as GST and is applied only as a domestic tax on all goods and services at the rate of 12.5%. (Note this changes on 1 October 2010 to 15% and revised pages will be posted shortly after to reflect the changes)
This singular tax poses one of the greatest challenges to Direct Selling companies entering New Zealand due to the complexities of its operation in spite of its simplicity of principles. GST in New Zealand applys to all goods and services except financial transactions and domestic housing rental. Read our GST and Importing section on how this is applied.
It is important to note that while both Australia and New Zealand have a GST, they are not linked in any way. Each are autonomous to each country. Where goods are shipped in either direction a GST will be applied to them on entry to that country unless they fall below the respective threshold for entry to that country. Those thresholds also differ so check before you decide to ship. Rates are different for the Australian GST which may impact on pricing to end consumers along with the different exchange rates. We recommend you check the impact of GST whether you are New Zealand based shipping to Australia or vice versa. Note: You will be able to claim back the GST component applicable from either New Zealand or Australia when exporting goods from that each country which may offset the GST paid on import.