This information is passed on to ACC who uses it to calculate your ACC liability. Choosing the right BIC code means you will be invoiced correctly.
Choosing the correct BIC code
The BIC code is based on the main activity of your business. Activity can mean a business, industry, profession, trade or undertaking. In most cases, the activity will relate to the services provided or goods produced by the business.
Supporting functions (such as administration, management, marketing and distribution, technical support, maintenance and product development) are considered part of the main activity.
A BIC code must be alphanumeric.
Example:
Tiny Toys Limited is a toy manufacturer but it also employs non-manufacturing staff. The goods produced are toys and the main activity of the business is manufacturing toys.
So the BIC code Tiny Toys Limited should use is C259280 Toy mfg.
How to find the appropriate BIC code
You can search for your business activity at www.businessdescription.co.nz
For best results use a single word that describes the product or service you provide to your customers.
Note
If the nature of your business changes, you can update your BIC code on your income tax return or phone us.
For more information, or if you need help choosing a business description, please contact us.