GST for Freelancers: What You Need to Know

If you’re a freelancer in New Zealand, understanding GST is essential, especially as your business grows. This guide covers what you need to know about GST registration, collecting GST, and filing returns.

When Do Freelancers Need to Register for GST?

If your income from freelance work exceeds NZD 60,000 per year, you’re required to register for GST. Once registered, you must charge GST on your services and pay it to the government.

Charging GST on Your Services

When you’re registered, you’ll add 15% GST to the fees you charge clients. For example, if you charge $1,000 for a project, the total will be $1,150 with GST. This helps keep your business GST compliant.

Filing GST Returns

As a registered freelancer, you need to file GST returns, usually every two or six months. This involves reporting your income and paying the collected GST to the Inland Revenue.

Conclusion

Understanding GST requirements as a freelancer helps you manage your business finances and stay compliant. With good record-keeping, GST can be straightforward, and it ensures you meet legal obligations.