We’re excited to announce that you can now file your GST returns in Xero and send them straight through to Inland Revenue electronically. We’ve had 1400 Xero businesses in New Zealand helping us trial this service over the last few months. They found it awesome and we think you will too.
“Xero makes it easy to get my books done, and takes out the hassle of paperwork – like filing taxes with the government. Xero has always calculated my GST but I used to enter that into a separate system to file my return. Now I do it in Xero and it’s filed in seconds, without any chance of human error – it’s accurate and easy to use. It’s one less thing I need to remember to do.”
– Frank Hsu of Frank’s Coffee and Eats
This service is incorporated into the current GST filing process in Xero. If you file provisional tax, make sure you’ve selected your provisional tax method, and you’re all set. When you click ‘File Now’ you’ll be prompted for your myIR login. It’s that easy – no double entry of your IR number or other information, Xero populates it all for you.
Xero businesses in the UK have been able to electronically file VAT (their goods and service sales tax) with HMRC for over three years now, and HMRC figures show a strong uptake with 12% of all third-party VAT filing done from Xero.
Digital government services making it easier to do business
Governments across the world are implementing digital programmes to make it easier for citizens to interact with them. This isn’t easy; not only do governments have legacy systems like many large enterprises, but they also have unique legal and political environments, and often need to change laws before they can implement digital services.
It’s exciting to see the New Zealand Government introduce digital integrations. Think of all the time you and your accountant or bookkeeper spend administering GST, staff taxes and benefits, social welfare payments, ACC, KiwiSaver, company and personal tax.
Time spent on paying taxes
A PWC report, Paying Taxes 2016, compared an average size business in different countries. According to the report, a New Zealand business could spend up to four weeks a year just on tax compliance. A similar size business in Australia and the UK would spend around two and a half weeks. But in nations like UAE, Switzerland or Hong Kong, tax compliance would take no more than two weeks.
Imagine if government initiatives reduced your tax compliance time by half – how would you spend the extra time that you’d normally spend doing taxes? How could your accountant or bookkeeper help improve your business if they weren’t tied up with tax administration?
Secure financial web connections with Xero
Building the financial web by integrating systems that are usually separate – such as accounting software, government and banking – save you a lot of time and the hassle of duplicate data entry. But it’s not just about saving time. It’s the peace of mind you get when your information is accurate and shared securely between Xero and other institutions such as government agencies. We use multiple layers of security to protect your financial data both when it’s stored and when it’s being transferred from one system to another, so you can confidently start filing your GST returns from Xero.
We’d love to hear what you think about eGST in Xero. In the meantime, we’ll keep working to make it easier for you to connect with government using the power of the Xero platform.