I am selling products to both overseas and New Zealand. How should I treat with my GST?
GST is a tax on consumption. The services provided to overseas customers are treated as zero rated,
As per section 11A(1)(k) of The Goods and Services Act 1985 : if the services are supplied to a person who is a non-resident and who it outside new Zealand at the time the services are performed those services are deemed to be zero rated for GST purposes.
If annual turnover is over $60,000 or about to be over 60,000 in the next 12 months, then GST registration is compulsory. For the turnover purposes all sales will be included, i.e. that to include zero rated sales as well. One of the advantage of zero rated of GST is, GST on income is not paid but you are still able to claim GST on your expenses.
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