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How do I file a GST return?

How to File a GST Return in New Zealand — What You Need to Know 

Filing a GST return comes down to calculating how much GST you’ve collected on sales, minus the GST you can claim on business expenses. Your accounting software will do most of this calculation — your job is to make sure the data going in is accurate.

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Common mistakes

Not all expenses include GST. Some of the most frequently misclaimed ones are:

• Wages and salaries (no GST)

• Bank fees (no GST)

• Residential rent (no GST)

• Owner drawings (no GST)

Over time, one of the biggest issues I see is when the GST balance on the Balance Sheet doesn’t match what’s been filed with IRD. This usually happens when transactions are entered into a period after the GST return has already been filed. It can quietly build up into a significant problem.

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Another common issue is claiming GST on transactions that don’t include it — and then having to repay a large lump sum when an accountant picks it up at year end. That’s a nasty surprise for cash flow.

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For peace of mind, I recommend having an accountant file your GST returns. If you’d rather do it yourself, at least have a training session first so you understand what you’re doing.