How GST works in New Zealand - in brief
| GST (Goods and Services Tax) is a value added tax which is added to prices of almost all goods and services sold in New Zealand. There is a small number of exceptions, but they do not apply to products sold by Nine Mill Scale Products. All of our products are subject to GST. At present the rate of GST is 12.5% and the prices quoted in the Nine Mill Scale Products price list include this tax Goods which are exported are technically subject to GST, but at a rate of 0%. The effect of that is to reduce the list price of goods exported by 1/9th. 1/9th? Yes, one ninth off a tax inclusive price reduces the price to the same amount as the price before 12.5% (or 1/8th) is added. So universal is the application of GST in New Zealand that even goods sold 'over the counter' to overseas tourists is subject to tax. I get asked from time to time if I can supply goods at export prices to a person intending to take them out of the country, but our tax law does not allow me to do that. In order that I may legally supply goods at 'tax exempt' prices I am required to be able to evidence the fact that I have sent the goods out of the country. |