A guide to GST registration

From 1 October 2016, non-resident businesses meeting the GST (Goods and Services Tax) registration criteria are expected to charge and return GST on any remote (including online) services they supply to customers who reside in New Zealand.

Non-resident businesses are expected to register for GST when:

• they exceed or expect to exceed the GST threshold (that is their 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)

• their customer is a resident in New Zealand

• they supply a qualifying remote service

A qualifying remote service is 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.

Examples of qualifying remote services include supplies to digital content such as e-books, movies, TV shows and music; website design or publishing services; gambling or insurance services; and webinars or distance learning courses.

Two pieces of evidence are required to determine whether a business supplies services to a customer who is a New Zealand resident. These pieces of evidence must not contradict each other and may include:

• the customer’s billing address

• the internet protocol (IP) address of the customer’s device

• details of the bank account the customer uses for payment

• where the customer’s fixed land line is supplied

• other relevant information