GST on Services for Foreign-Owned Cruise Ship In NZ Harbour

Question

A client is a closed company offering Maori cultural tourism activities.

The client was recently awarded a contract for providing Maori performances on cruise ships, when the ships stop over at various New Zealand harbours. The customer/ cruise ship tour organiser is a foreign company based in the UK.

Should our client charge normal GST @ 15% for the services offered to the foreign cruise ship company or is the service qualified for zero rated GST?

Answer

The service is physically provided in NZ to tourists in NZ therefore GST should be charged at 15%.