NZ GST Calculator
Amount Excluding GST
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GST Amount (15%)
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Amount Including GST
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How New Zealand GST Works
New Zealand's Goods and Services Tax (GST) is a 15% consumption tax applied to most goods and services sold in the country. Introduced in October 1986 at 10% under the Goods and Services Tax Act 1985, it was increased to 12.5% in 1989 and to the current rate of 15% in October 2010. New Zealand's GST is notable for its broad base and simplicity — unlike many countries that have multiple tax tiers, NZ applies a single flat rate with relatively few exemptions, which the OECD has described as one of the most efficient consumption taxes in the world.
GST is administered by Inland Revenue (IRD) and raises approximately NZ$28 billion per year, making it the government's second-largest revenue source after income tax. In the 2023-24 fiscal year, GST represented about 31% of total tax revenue. Businesses registered for GST collect the tax on behalf of the government and can claim input tax credits for GST paid on business purchases, similar to Australia's system. Use the Australian GST Calculator if you also operate across the Tasman.
The NZ GST Calculation Formula
The GST formulas for New Zealand are straightforward:
Add GST: Total = Amount x 1.15Find GST in inclusive price: GST = Total x 3/23Find pre-GST price: Excl. Amount = Total / 1.15
- GST Rate — 15% flat rate on all taxable supplies
- GST Fraction — 3/23 of the GST-inclusive price (equivalent to 15/115)
Worked example: A tradesperson quotes NZ$800 for a plumbing job (excluding GST). GST = NZ$800 x 0.15 = NZ$120. Total including GST: NZ$920. On the tax invoice, the NZ$120 GST must be itemized separately.
Key Terms You Should Know
- Taxable Supply — any supply of goods or services made in New Zealand by a registered person in the course of a taxable activity that is not an exempt supply.
- Exempt Supply — supplies that are not subject to GST and where the supplier cannot claim input tax credits. Includes residential rent, financial services, and donated goods.
- Zero-Rated Supply — supplies taxed at 0% GST but where the supplier can still claim input tax credits. Includes exports, certain food items, and going-concern sales.
- IRD Number — the tax identification number issued by Inland Revenue, required for GST registration and filing.
- Tax Invoice — a document required for GST claims over NZ$50, showing the supplier's name, GST number, date, description, and GST amount.
NZ GST vs. Australia and UK VAT
| Feature | New Zealand | Australia | UK (VAT) |
|---|---|---|---|
| Standard Rate | 15% | 10% | 20% |
| Reduced Rates | None (0% only) | None (0% only) | 5% reduced rate |
| Registration Threshold | NZ$60,000 | A$75,000 | GBP 90,000 |
| Food Taxed? | Yes (15%) | Basic food GST-free | Basic food 0% |
| Residential Rent | Exempt | Input-taxed | Exempt |
Practical Examples
Example 1 — Adding GST to a Quote: An Auckland web designer quotes NZ$3,000 excluding GST. GST = NZ$3,000 x 0.15 = NZ$450. Total: NZ$3,450. The client, if GST-registered, can claim the NZ$450 as an input tax credit on their next GST return.
Example 2 — Removing GST from a Receipt: A business owner buys equipment for NZ$1,725 (GST-inclusive). GST = NZ$1,725 x 3/23 = NZ$225. Pre-GST cost: NZ$1,500. The NZ$225 is claimable as an input tax credit.
Example 3 — Comparing with Australia: The same NZ$1,500 item in Australia (at 10% GST) would cost A$1,650, while in New Zealand it costs NZ$1,725 (at 15%). New Zealand's broader GST base (taxing food and most services) means higher consumer costs but fewer exemptions to manage for businesses.
Tips for NZ GST Compliance
- Register if turnover exceeds NZ$60,000. You must register for GST if your taxable supplies in any 12-month period exceed NZ$60,000, or if you expect them to exceed NZ$60,000 in the next 12 months. Voluntary registration is available below this threshold.
- Choose the right filing period. Most businesses file GST returns two-monthly (six returns per year). Those with turnover above NZ$24 million must file monthly. Small businesses with turnover under NZ$500,000 can apply for six-monthly filing.
- Use the payments basis if eligible. Small businesses with turnover under NZ$2 million can account for GST on a payments basis, meaning you only pay GST when you receive payment (not when you invoice). This helps with cash flow. Use the NZ Mortgage Calculator for long-term financial planning.
- Keep records for 7 years. Inland Revenue requires you to keep GST records, including tax invoices, for at least 7 years. Electronic records are acceptable.
- Report overseas purchases correctly. Since 2016, overseas digital services suppliers (Netflix, Spotify, etc.) with NZ customers exceeding NZ$60,000 must register for and charge NZ GST.
Frequently Asked Questions
What is the current NZ GST rate?
New Zealand's GST rate is 15% on most goods and services, effective since 1 October 2010. The rate has remained unchanged for over 15 years. Unlike many countries that have multiple tax tiers, New Zealand applies a single flat 15% rate with very few exemptions, which the OECD considers one of the most efficient consumption tax structures globally. The simplicity means virtually all consumer purchases — including food, clothing, and professional services — attract the full 15%. Only a narrow set of supplies are exempt (residential rent, financial services, donations) or zero-rated (exports, going-concern sales). This broad base generates approximately NZ$28 billion per year for the government, making GST the second-largest revenue source after income tax.
What is exempt from GST in New Zealand?
Exempt supplies are those where no GST is charged and the supplier cannot claim input tax credits on related purchases. Key exemptions include residential rental income (including boarding and flatting), financial services such as interest, insurance premiums, and fund management fees, donated goods and services, penalty interest and late payment fees, and certain government charges. Zero-rated supplies (GST at 0% but supplier can claim credits) include exports of goods and services, the sale of a going concern (business sale), and supplies to certain international organizations. Notably, New Zealand does not exempt basic food from GST, which distinguishes it from Australia and the UK. A loaf of bread in NZ includes 15% GST, whereas it would be GST-free in Australia and zero-rated in the UK.
Do I need to register for GST in New Zealand?
You must register for GST if your taxable supplies (sales of goods and services) exceed NZ$60,000 in any 12-month period, or if you reasonably expect them to exceed NZ$60,000 in the coming 12 months. This threshold applies to sole traders, partnerships, companies, and trusts. Once registered, you must charge GST on all taxable supplies, file regular GST returns, and can claim input tax credits for GST paid on business purchases. Voluntary registration below the NZ$60,000 threshold is available and can be beneficial if you have significant business expenses, as it allows you to claim GST credits even when your revenue is low. Registration takes 1-2 business days online through Inland Revenue's website.
How do I calculate the GST component from a GST-inclusive price?
To find the GST included in a GST-inclusive price, multiply the total by 3/23 (which equals 15/115 or approximately 0.1304). For example, if an item costs NZ$230 including GST: GST = NZ$230 x 3/23 = NZ$30. The pre-GST price is NZ$230 - NZ$30 = NZ$200. Alternatively, divide the inclusive price by 1.15: NZ$230 / 1.15 = NZ$200, then subtract to find GST. The 3/23 shortcut is particularly useful for quick mental calculations — for every NZ$23 spent, NZ$3 is GST. For business accounting purposes, always retain the tax invoice showing the GST amount separately, as Inland Revenue requires this for input tax credit claims on purchases over NZ$50.
How often do I file GST returns in New Zealand?
The standard GST filing frequency is two-monthly, which means six returns per year, due on the 28th of the month following the end of each two-month period (January-February, March-April, etc.). Businesses with annual taxable supplies over NZ$24 million must file monthly. Small businesses with turnover under NZ$500,000 can apply to file six-monthly (twice a year). If you use a tax agent, you may be eligible for extended due dates. Late filing attracts penalties: an initial 1% of GST owing, increasing by 4% after 7 days and a further 1% per month. Interest also accrues on unpaid GST at the use-of-money interest rate (currently approximately 10.91% per annum). Inland Revenue recommends using accounting software that calculates GST automatically and integrates with their online filing system.
Does GST apply to online purchases from overseas?
Yes, since 1 October 2016, overseas suppliers of remote services (streaming, software, e-books) to NZ consumers must register for and charge NZ GST if their supplies exceed NZ$60,000 per year. This applies to companies like Netflix, Spotify, and Amazon. For physical goods, GST applies to imported items from 1 December 2019 when purchased from offshore marketplaces. GST is collected at checkout by the marketplace operator (e.g., Amazon, eBay, AliExpress) for goods valued at NZ$1,000 or less. For goods over NZ$1,000, GST and customs duties are collected by NZ Customs at the border. If you are a GST-registered business importing goods for resale, you can defer GST payment through the deferred payment scheme and claim it as an input tax credit on your next GST return.