GST on Immigration Services To Overseas Clients

Question

A New Zealand company (A Ltd) provides immigration services to both NZ tax residents and overseas clients, as immigration advisors. They have a new client, which is an overseas company B, based in China. They signed an agreement to provide services for Company B's clients, who are currently living in NZ, both NZ Tax residents and those who are non-tax resident. There is no separate agreement between company A and individual clients of Company B. In this case, should 15% GST be charged, or should they be zero rated?

Answer

If the clients of company A are based in New Zealand when the service is performed, GST should be charged at 15%. If the clients are based overseas when the service is performed the services are able to be zero rated for GST purposes.