Calculating GST and issuing tax invoices
If you’re a GST-registered business you must add GST to your prices. You also need to issue GST invoices. Find out how.
How to add GST to prices
Once you're GST registered, you will need to put prices up by 15%. There's a very simple formula for doing that:
You can find useful GST calculators on the web – just search for ‘NZ GST calculator’. And don't forget that GST will not affect the prices of goods or services that are zero-rated, GST-exempt, or classified as special supplies.
What are tax invoices?
A tax invoice (also known as taxable supply information) tells a customer how much GST they paid on a purchase. It’s important information because some of your customers may be able to claim that tax back.
If you’re GST registered, you must issue a GST invoice within 28 days of a request for it (or by an alternative date agreed to by the parties) for purchases over $200. For sales of $200 or less, you’re required to keep a record of the sale, but you’re not required to provide an invoice.
Tax invoice example
Here’s what you need to put on a tax invoice.
Receipts versus tax invoices
A receipt printed at point of sale is called a tax invoice if it has all of this information on it. But it must contain the words ‘tax invoice’.
Disclaimer
Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.
GST Guide For Business
Making a start with GST? Don’t worry. It’s a little extra admin, but this guide will help you get sorted.
- What is GST?
You’ve probably heard about GST – it stands for goods and services tax and is added onto prices in New Zealand.
- Registering for GST
Find out if your business needs to register for GST. If so, learn how to do it and find out what happens next.
- Calculating GST and issuing tax invoices
If you’re a GST-registered business you must add GST to your prices. You also need to issue GST invoices. Find out how.
- Claiming back GST
GST-registered businesses can claim back the GST they pay on business expenses. Let’s learn how.
- Working out your GST refund or payment
Working out GST is simple maths. Keeping track of all your transactions is the tricky part. Let’s learn the process.
- GST returns and due dates
As a GST-registered business you’ll declare how much you’ve collected and paid. You do this by filing GST returns.
- Tools and guides for your business
Now you know the ins and outs of GST, but it can be tough to keep on top of it all. Xero’s got the resources to help.
Download the GST Guide for Business
Get your GST sorted. Fill out the form to receive this guide as a PDF.
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