What is GST in New Zealand?

GST (Goods and Services Tax) is a consumption tax applied to most goods and services sold in New Zealand. It is collected by businesses on behalf of the government and paid to Inland Revenue (IRD).

The NZ GST Rate

The current GST rate in New Zealand is 15%. This rate has been in effect since 1 October 2010, when it was increased from 12.5%.

GST is included in the price of most goods and services you buy in New Zealand. When you see a price in a shop, it typically already includes GST. For business-to-business transactions, invoices often show the GST component separately.

Who Needs to Register for GST?

You must register for GST if your business has a turnover of more than $60,000 in any 12-month period, or you expect it to exceed $60,000 in the next 12 months. You can also voluntarily register if your turnover is below this threshold.

Benefits of GST Registration

• You can claim back GST on business expenses (input tax credits)
• Your business may appear more professional and established
• You can deal more easily with other GST-registered businesses
• Voluntary registration lets smaller businesses claim GST refunds on expenses

What is GST-Exempt?

Most goods and services in NZ are subject to GST, but some are exempt, including:

• Residential rent
• Financial services (such as bank fees and interest)
• Donated goods sold by non-profit organisations
• Penalty interest and fines

Filing GST Returns

Once registered, you need to file GST returns with the IRD. You can choose to file:

• Monthly - if your turnover is over $24 million, or you choose to
• Two-monthly - the most common filing period
• Six-monthly - if your turnover is under $500,000

GST returns can be filed online through myIR, the IRD's online portal.

How to Calculate GST

To add GST to a price, multiply by 1.15. To find the GST component of a GST-inclusive price, multiply by 3 and divide by 23.

GST on Your Invoices

If you are GST registered, your invoices must show the GST amount separately. This is called a tax invoice. Our free invoice generator automatically calculates and displays the 15% GST for you.