Goods and Services Tax (GST) is added to a variety of goods and services sold within New Zealand, at a standard rate of 15 percent. From the items you buy at your local grocery to TV repair services, there is a good chance that the GST is already included in the price you pay.
Your job as a GST-registered business is to collect the GST your products and services produce on behalf of the IRD. This amount is then paid to the IRD after you file your GST returns. As an incentive, the IRD will allow you to deduct the amount you owe based on the amount of GST you pay to help keep your business running.
Unfortunately, there are times when this process is not followed, resulting in penalties from the IRD. Stay on the IRD’s good side by following these three simple tips:
File and Pay Your GST On Time
Make it a point to file and pay your GST on or before the deadline. After all, they give businesses more than enough time to file and pay the amount owed. If you are the type to get caught up in your work and miss important dates, you may want to keep a visible reminder of when you need to file your GST return. On the other hand, the IRD allows businesses to delegate filing returns and paying GST to trusted accounting services like Colin Bender Chartered Accountants. Whichever way you choose, your main priority is to ensure you file and pay on time every time.
Report Changes to Your Info
When filing your GST returns early, keep the information as accurate as possible. In the event that the information stated on your return or on your GST registration changes for any reason, contact the IRD immediately. Even the most subtle changes can significantly change the amount you owe the IRD. If the IRD decides to audit your GST return, you can easily find yourself in hot water with the agency.
Ask for Help When You Can’t Pay
The sole purpose of the penalties handed down by the IRD is to encourage business owners to pay their GST on time. Of course, this doesn’t mean that the IRD will not consider your business’s circumstances. If you cannot pay your GST on time, call the IRD as soon as possible. By properly explaining your business’s current situation, the IRD can set up a payment plan that reduces the financial burden your business is carrying.