New Zealand
GST Calculator
Add or Remove 15% Instantly
The free, accurate tool for kiwi business owners, sole traders, bookkeepers, and accountants. Auto-updates as you type โ no button required.
| Description | Amount ($) | GST Type | GST ($) | Total ($) |
|---|
How to Calculate GST in New Zealand
GST = $400 ร 15% = $60
Total = $400 + $60 = $460
Excl. GST = $460 รท 1.15 = $400
GST = $460 โ $400 = $60
Example: $1,150 ร 3/23 = $150 GST
Quicker than dividing by 1.15 then subtracting.
Example: $800 ร 1.09 = $872 total
GST = $72
What is GST in New Zealand?
Goods and Services Tax (GST; Mฤori: Tฤke hokohoko) is New Zealand's primary consumption tax, applied to most goods and services sold or consumed within the country. Introduced on 1 October 1986 at 10%, the rate was raised to 12.5% in 1989 and to its current rate of 15% on 1 October 2010.
New Zealand's GST is designed to be a broad-based, low-rate system with very few exemptions โ a deliberate policy choice that makes it one of the cleanest and most efficient consumption taxes in the world. Unlike many countries that exempt basic food or clothing, NZ applies GST almost universally, relying on other mechanisms (like Working for Families credits) to address equity concerns.
GST accounts for approximately 30% of New Zealand's total tax revenue, making it a cornerstone of government funding. Every GST-registered business acts as a collector for the Inland Revenue Department (IRD), charging GST on sales, claiming credits on purchases, and remitting the net amount.
Since 1986
One of the world's longest-running GST systems โ over 35 years of operation, with the current 15% rate in place since 2010.
Broad Base
Very few exemptions compared to other countries. Most goods and services โ including digital imports โ are taxable at 15%.
Input Tax Credits
GST-registered businesses claim back GST paid on purchases, so only the end consumer ultimately bears the cost of the tax.
Netflix Tax (2016)
Since 1 October 2016, offshore digital service providers (streaming, software, ebooks) must charge and remit 15% GST to IRD.
GST Supply Types in New Zealand
New Zealand categorises GST supplies into four types. Unlike Australia, NZ has a reduced rate of 9% for specific accommodation, making the system slightly more nuanced.
Taxable
- Retail goods and clothing
- Professional services
- Food (most processed & takeaway)
- Construction and trades
- Commercial property rents
- Digital services (offshore)
Zero-Rated
- Exported goods and services
- Most land transactions
- International air & sea transport
- First supply of refined precious metals
- Some financial services on exports
Exempt
- Residential rent
- Most financial services & bank fees
- Donated goods (charities)
- Fine metals (certain situations)
Reduced Rate
- Long-term hotel/motel accommodation
- Applies when stay exceeds 4 weeks
- Must be same premises, same supplier
GST Registration Thresholds & Requirements
The IRD requires mandatory GST registration once your taxable turnover crosses NZD $60,000 in any 12-month period. This applies to both resident and most non-resident businesses supplying goods or services in New Zealand.
Filing Frequencies โ Which Applies to You?
Your GST return frequency depends on your annual taxable turnover. All returns and payments are due by the 28th of the month following the end of each period.
Large Businesses
Turnover above NZ$24 million annually. Also available to businesses that typically receive GST refunds.
Most Businesses
The default frequency for most registered businesses with turnover between NZ$500K and $24M. Six return periods per year.
Small Businesses
Available if annual taxable turnover is below NZ$500,000. Two return periods per year โ must be approved by IRD.
Late filing incurs a penalty of NZ$50 (six-monthly filers) or NZ$250 (monthly/two-monthly filers) per return. Unpaid amounts attract a 1% monthly late-payment penalty plus interest.
How to File Your GST Return (myIR)
All New Zealand GST returns are filed and paid online through the IRD's myIR portal. Here's how it works each period:
Total your taxable sales (output tax)
Add up all GST-inclusive sales made during the period. Subtract to find the GST component. As of April 2023, you provide "taxable supply information" rather than traditional tax invoices.
Total your eligible purchases (input tax)
Add up GST paid on all business-related purchases. You must hold valid taxable supply information to support each claim.
Calculate net GST
Output tax minus input tax credits = net GST payable. If your input tax exceeds output tax, IRD will refund the difference.
Log in to myIR and file by the 28th
Select "Returns and transactions" โ GST account โ "File return". Pay via SWIFT transfer in NZD using the IRD reference format. Keep all records for at least 7 years.
NZ GST vs Australia GST โ Key Differences
Both countries call it GST, but there are meaningful differences that affect how businesses operating across the Tasman calculate and report their tax obligations.
| Feature | ๐ณ๐ฟ New Zealand | ๐ฆ๐บ Australia |
|---|---|---|
| Standard rate | 15% | 10% |
| Reduced rate | 9% (long-stay accommodation) | None |
| Registration threshold | NZ$60,000 | A$75,000 |
| Tax authority | IRD (Inland Revenue Dept) | ATO (Aus. Tax Office) |
| Tax return name | GST Return (myIR) | BAS (Business Activity Statement) |
| Standard filing frequency | Two-monthly | Quarterly |
| Food exemptions | Very few (broad-based) | Basic unprocessed foods GST-free |
| Digital services (offshore) | 15% since Oct 2016 | 10% since July 2017 |
| Return period introduced | 1986 | 2000 |
NZ GST โ Common Questions Answered
To remove GST: divide by 1.15. Example: $230 รท 1.15 = $200.
To find just the GST component: multiply by 3/23. Example: $230 ร 3/23 = $30.
Our calculator above handles all these automatically โ just enter your amount and select the mode.