“Single rate, broad based” is the catch phrase of New Zealand’s GST system but is it really true?
There are now 9 GST rates applying in New Zealand as determined in the legislation or by IRD decree.
They are 0%, 7.5%, 9%, 10.25%, 10.75%, 12.3%, 12.5%, 12.9% and 15%.
Sure some of these rates apply only in pretty specific situations but most businesses need to have systems capable of handling at least 3 of them at any time.
As for “broad based”; financial services, residential accommodation and fine metals are current exemptions and with Labour’s promise to remove GST from “fresh fruit and vegetables” this too could become a misnomer.
http://iainblakeley.com/wp-content/uploads/2017/01/name-1-300x72.png00Iain Blakeleyhttp://iainblakeley.com/wp-content/uploads/2017/01/name-1-300x72.pngIain Blakeley2011-02-21 13:56:422011-02-21 13:56:42The great New Zealand GST myth?
Barrister, Director and Consultant specialising in tax, family enterprise governance and succession, helping start ups and entrepreneurial enterprises grow safely and international expert on value added tax policy and implementation.