Goods and Services Tax (New Zealand)
Goods and Services Tax (a Value Added Tax)was introduced in New Zealand on the 1st of October 1986 at 10%. Only the end-consumer pays this tax (on the goods or service), and GST registered businesses generally are not charged GST upfront, or, if they are, are able to claim back GST. Thus, a business does not pay GST on its supplies, only the consumer on the end product. Similarly, services, such as repairs by plumbers or mechanics include GST on their bill to the consumer, but buy the parts ex-GST.
GST was increased to 12.5% on the 30th of June, 1989. There are a few exemptions, including residential housing, residential accommodation, and financial services.