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What is VAT and the current rate of VAT in New Zealand?
Value Added Tax, or abbreviated to “VAT”. VAT is an indirect tax that applies to sales and purchases i.e. it is a transaction based tax. VAT operates at each level of the supply chain from producer, manufacturer, wholesaler and retailer; this ultimately ensures that VAT is accounted for at each stage of the supply chain until it finally rests with the end user. The standard rate of VAT in the New Zealand is 5%. VAT will be printed on the POS receipt sent along with the merchant invoice for the placed order in GoShoppi. Please note, specific goods and services may be subject to the 0% rate of VAT or may be VAT exempt.
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