You might also want to watch: How to register your name: th-cam.com/video/P6KDee1cr6Q/w-d-xo.html Which business entity to use: th-cam.com/video/eM2QIxSl7Lw/w-d-xo.html
@@PeterNola Thanks again Peter, I've just secured two important contracts that will launch my business and provide much needed capital to reinvest back into the business. I never dreamed that this could be possible, it's awesome. I now consider you one of my mentors, and I'm very grateful. Cheers.
Kia ora Pete, your videos are, very clear so thank you. If I provide a service in NZ, to a company overseas (UK), how does GST and VAT work? In NZ, I will be GST registered, and add on the 15% for my service provided. VAT in the UK is 20%, so I'm a little unsure how the two work together. What is your take?
Thanks for the compliment. Unfortunately, I cant help you with the UK rules. In NZ when you sell a service/product overseas it is a zero rated sale. GST is not charged/collected, provided you meet certain criteria. You will need to be clear with your book-keeping so you can show the zero rated sales and local sales on your GST return. My knowledge of the details of how this works is limited, so please check with your tax advisor as IRD can get upset if they think your are avoiding tax!
Hi Peter, Have a question about issuing invoices to be paid out from a interior paint job I recently did which I paid for all materials plus paints to do the job. I quoted the job with a invoice app I use on my phone and sent that out to them through email. Next they agreed and accepted the quote and then I started the job in which now I've fully completed it. Can you tell me what one would I use to get them to pay me, a invoice or tax invoice??? Please get back to me so I would know. Thanks
There is not enough info for me to answer. Are you a sole trader, do you claim expenses, are you GST registered? If it's a matter of being paid, just send them an invoice.. Check with your accountant/tax adviser as to what is right for your situation.
Hi Peter, really loving your videos. Helping me gain clarity around starting a business. You said at the end that you have recommendations for really good accountants. Would you mind sharing this with me? Cheers. Jasper
If work for someone else and have a side business as a sole trader, is that $60000 a year combined or just for my business? (I Havnt started the business yet)
Thats probably a little outside of my area. There is no GST charged on wages when they are paid. Im sorry, you would be better to ask a tax expert or your accountant.
Thank you for your enlightenment video on the other day about how to start a business in New Zealand 🇳🇿 I got a proper idea and planning procedure for my business. ------------------------ Also I have an another question about buying a business in New Zealand 🇳🇿 so can you brief me on that, Please if you can. I saw the details on the website just wanted to know more about it.
For more information on a business on the website, just follow the links on the advert page to complete a confidentiality agreement. The completed agreement will be sent automatically through to the broker that has their name on the for sale listing. If its one of mine, I'll be in touch pretty quickly.
Great videos with alot of information Peter. I have some questions though, how does the GST registration works for individual contractors trying to work overseas?
Thanks for the compliment. Your question is probably getting a little too detailed for me. Im assuming you live in NZ, but work overseas as a contractor? GST is charged on goods and service in New Zealand, so I dont see how it would effect you working overseas? You will have to ensure that you follow the process for income tax etc, but from what you have said, GST shouldnt be an issue as you are not charging for services carried out in NZ. Please dont rely on my advice about this. GST and tax are not to be guessed at, so definitely speak to your accountant or tax advisor.
Thanks @@PeterNola , I didn't explain myself very well, I live overseas ( in Bolivia) and I have an opportunity to work as a contractor remotely in a company in New Zealand, they ask me to be GST registered.
@@kescalera84 Sorry, thats I question that I dont have an answer for. I havent come across this in my day to day business, so no experience here. I can understand why they want you to be GST registered for work here as that would fit with their system, but I dont know how that will impact you being an off-shore based contractor. Apologies that I cant help.
Hi Peter, I watched all your videos, they helped me a lot to understand a lot more about how a business work in nz. I have one question, I'm currently starting as a freelancer videographer but I also want to keep my full time job for a different company (doing something else not related to my business). Can I be a Sole trader and also employed by a different company? How does that affect my ird number and taxes? is it convenient to do it as sole trader or should I start is as a LLB in my case? Thanks again for the videos!
Yes, you can be a sole trader and/or a Co Director and have a full time job elsewhere. For the tax implications of each, I suggest you talk to your accountant and/or tax adviser. tax is not my specialist area
Ive bought the majority of required tools/ machinery including a work vehicle with my personal bank account before i had started my small llc and had a bank account for it. so can i claim gst on those purchases back for my business?? Thanks for the sharing your knowledge really appreciate it 👍
I am assuming that your LLC is registered for GST and Im assuming the purchases are reasonably recent. If so, then yes you can claim the GST. There is more than one way to do this, so speak to your accountant to be sure you are doing it correctly. You may need to transfer the ownership to the LLC and/or get a valuation on the vehicle etc. I am not a tax/GST expert, so your accountant is best placed to talk you through the details.
Morena. When you buy something in NZ, GST is always included in the price you pay. If you are registered for GST, then you can claim back the GST portion of that purchase later, always assuming its a business expense. However, in order to claim GST back, you will need to ensure that you are also collecting GST from your own sales. A GST return reconciles the difference and then you will either pay some GST or get a refund. GST registration is compulsory over $60k revenue per year, and voluntary under $60k. It will depend on your level of expenses and sales as to whether registration makes sense under $60k, and thats a question best answered by your accountant. Does that all make sense?
The most common ones I see are MYOB and Xero. Both will do invoicing, accounts etc. The best software to use is the version recommended by your accountant as they will do the end of year stuff and the easier you make it for them, they less they'll charge you!
Hi Peter, so if the business is earning less than 60k per annum, I have the option not to register for GST? Any advantages of not being registered? Thank you.
Advantages/disadvantages are all around sole trader, LLC, cashflow and tax, so my suggestion is to talk to your tax advisor/accountant. They will know your situation and be able to to advise accordingly.
Sure. There are a number of apps you can use, all depends on how much work you want the application to do. For example, Xero or MYOB, which appear to be the most popular will do your bank reconciliation, GST, manage stock, invoices, statements etc. I am assuming you will be using a tax advisor and they will usually be aligned with a particular software that they use for end of the year accounts etc. Speak with them to find what is compatible with their system.
You might also want to watch:
How to register your name: th-cam.com/video/P6KDee1cr6Q/w-d-xo.html
Which business entity to use: th-cam.com/video/eM2QIxSl7Lw/w-d-xo.html
Exactly what I was looking for and explained so simply!! Thank you!!
Thanks for watching, and the compliment. Much appreciated.
Thanks Peter, I've just started my business and feel more confident in knowing my responsibilities and how to keep on top of GST. Much appreciated.
Love it. I hope it all goes well for you.
@@PeterNola Thanks again Peter, I've just secured two important contracts that will launch my business and provide much needed capital to reinvest back into the business. I never dreamed that this could be possible, it's awesome. I now consider you one of my mentors, and I'm very grateful. Cheers.
@@vanessacooper9086 Kind words, thank you.
Kia ora Pete, your videos are, very clear so thank you. If I provide a service in NZ, to a company overseas (UK), how does GST and VAT work? In NZ, I will be GST registered, and add on the 15% for my service provided. VAT in the UK is 20%, so I'm a little unsure how the two work together. What is your take?
Thanks for the compliment. Unfortunately, I cant help you with the UK rules. In NZ when you sell a service/product overseas it is a zero rated sale. GST is not charged/collected, provided you meet certain criteria. You will need to be clear with your book-keeping so you can show the zero rated sales and local sales on your GST return. My knowledge of the details of how this works is limited, so please check with your tax advisor as IRD can get upset if they think your are avoiding tax!
Hi Peter,
Have a question about issuing invoices to be paid out from a interior paint job I recently did which I paid for all materials plus paints to do the job. I quoted the job with a invoice app I use on my phone and sent that out to them through email. Next they agreed and accepted the quote and then I started the job in which now I've fully completed it. Can you tell me what one would I use to get them to pay me, a invoice or tax invoice??? Please get back to me so I would know. Thanks
There is not enough info for me to answer. Are you a sole trader, do you claim expenses, are you GST registered? If it's a matter of being paid, just send them an invoice.. Check with your accountant/tax adviser as to what is right for your situation.
@@PeterNola HI, thanks for getting back. I'm a business owner running my business. Im GST registered
@@lockedloaded1669 In that case, its a GST/Tax invoice.
Hi Peter, really loving your videos. Helping me gain clarity around starting a business. You said at the end that you have recommendations for really good accountants. Would you mind sharing this with me? Cheers. Jasper
Sure, happy to help. I received your email and I have replied with some options.
Is it advisable to open a new bank account for work related transactions?
Yes, a separate bank account for your sole trader activity is definitely a good idea
@@PeterNola that's good to know thanks. 🤗
If work for someone else and have a side business as a sole trader, is that $60000 a year combined or just for my business?
(I Havnt started the business yet)
Thats probably a little outside of my area. There is no GST charged on wages when they are paid. Im sorry, you would be better to ask a tax expert or your accountant.
@@PeterNola ok thank you
Thank you for your enlightenment video on the other day about how to start a business in New Zealand 🇳🇿 I got a proper idea and planning procedure for my business.
------------------------
Also I have an another question about buying a business in New Zealand 🇳🇿 so can you brief me on that, Please if you can. I saw the details on the website just wanted to know more about it.
For more information on a business on the website, just follow the links on the advert page to complete a confidentiality agreement. The completed agreement will be sent automatically through to the broker that has their name on the for sale listing. If its one of mine, I'll be in touch pretty quickly.
Peter Nola fine sure, Thanks for the help again
Awesome Peter
Thanks, I appreciate it.
Great videos with alot of information Peter. I have some questions though, how does the GST registration works for individual contractors trying to work overseas?
Thanks for the compliment. Your question is probably getting a little too detailed for me. Im assuming you live in NZ, but work overseas as a contractor? GST is charged on goods and service in New Zealand, so I dont see how it would effect you working overseas? You will have to ensure that you follow the process for income tax etc, but from what you have said, GST shouldnt be an issue as you are not charging for services carried out in NZ. Please dont rely on my advice about this. GST and tax are not to be guessed at, so definitely speak to your accountant or tax advisor.
Thanks @@PeterNola , I didn't explain myself very well, I live overseas ( in Bolivia) and I have an opportunity to work as a contractor remotely in a company in New Zealand, they ask me to be GST registered.
@@kescalera84 Sorry, thats I question that I dont have an answer for. I havent come across this in my day to day business, so no experience here. I can understand why they want you to be GST registered for work here as that would fit with their system, but I dont know how that will impact you being an off-shore based contractor. Apologies that I cant help.
Hi Peter, I watched all your videos, they helped me a lot to understand a lot more about how a business work in nz. I have one question, I'm currently starting as a freelancer videographer but I also want to keep my full time job for a different company (doing something else not related to my business). Can I be a Sole trader and also employed by a different company? How does that affect my ird number and taxes? is it convenient to do it as sole trader or should I start is as a LLB in my case?
Thanks again for the videos!
Yes, you can be a sole trader and/or a Co Director and have a full time job elsewhere. For the tax implications of each, I suggest you talk to your accountant and/or tax adviser. tax is not my specialist area
Ive bought the majority of required tools/ machinery including a work vehicle with my personal bank account before i had started my small llc and had a bank account for it. so can i claim gst on those purchases back for my business??
Thanks for the sharing your knowledge really appreciate it 👍
I am assuming that your LLC is registered for GST and Im assuming the purchases are reasonably recent. If so, then yes you can claim the GST. There is more than one way to do this, so speak to your accountant to be sure you are doing it correctly. You may need to transfer the ownership to the LLC and/or get a valuation on the vehicle etc. I am not a tax/GST expert, so your accountant is best placed to talk you through the details.
Kia ora Peter, so if my business revenue is under $60,000 I don’t have to pay the %15 tax on goods sold? Thank you
Morena. When you buy something in NZ, GST is always included in the price you pay. If you are registered for GST, then you can claim back the GST portion of that purchase later, always assuming its a business expense. However, in order to claim GST back, you will need to ensure that you are also collecting GST from your own sales. A GST return reconciles the difference and then you will either pay some GST or get a refund. GST registration is compulsory over $60k revenue per year, and voluntary under $60k. It will depend on your level of expenses and sales as to whether registration makes sense under $60k, and thats a question best answered by your accountant. Does that all make sense?
@@PeterNola Appreciate you taking the time to reply. Yes that makes sense. Thank you Peter
@@weranahi9566 All good, glad I could help.
what accounting all-in-one software do u recommend for a sole trading tradesman?
The most common ones I see are MYOB and Xero. Both will do invoicing, accounts etc. The best software to use is the version recommended by your accountant as they will do the end of year stuff and the easier you make it for them, they less they'll charge you!
Hi Peter, so if the business is earning less than 60k per annum, I have the option not to register for GST? Any advantages of not being registered? Thank you.
Advantages/disadvantages are all around sole trader, LLC, cashflow and tax, so my suggestion is to talk to your tax advisor/accountant. They will know your situation and be able to to advise accordingly.
Kiaora, are there any computer applications that can help with tax invoices and stuff. Thanks
Sure. There are a number of apps you can use, all depends on how much work you want the application to do. For example, Xero or MYOB, which appear to be the most popular will do your bank reconciliation, GST, manage stock, invoices, statements etc. I am assuming you will be using a tax advisor and they will usually be aligned with a particular software that they use for end of the year accounts etc. Speak with them to find what is compatible with their system.
@@PeterNola many thanks
First view
Well done.