New to Taxes: A couple of questions

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Hi everyone,

I am new to taxes and I have a couple of questions - sorry I do not know much about this area so please excuse my poor knowledge: 


  • Why does registering my store in New Zealand (where I live) exempt me from paying GST tax? 
  • Does registering my store mean that I have to register my business in New Zealand? Right now, I am making 0 dollars in sales. 
  • Why should I include taxes for my store? The option to increase prices to my consumers on my store through collecting taxes is so that I use that to pay for my taxes to the New Zealand government. 

And in general, what is everyone's experience with taxes? 

Again, excuse me for my poor knowledge. I am still trying to improve in this area. Thank you! 

Reply 1 (1)
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In NZ you are only obliged to register for GST when your income exceeds $60, 000 per year. This is regardless of whether you are a registered business, Sole Trader or other type of vendor.

Until that time - you do not have to collect GST on your sales, but neither can you claim it on your purchases - including your Shopify monthly fees - which may be the prompt you are seeing on your Shopify home page.

Shopify gives you an option whether to collect GST or not under Settings_Taxes after you set up your store as being based in NZ.

Hope that helps 🙂