The New Zealand GST Calculator helps you quickly determine the GST amount on a purchase or service. You can calculate GST by adding it to a net amount or removing it from a total amount.
New Zealand GST Calculator
Calculate Goods and Services Tax (GST) for New Zealand transactions
Standard Rate
Zero Rate
Total Amount
GST Amount
Net Amount
GST Rate
Removing GST: Net = Amount ÷ (1 + GST Rate)
The New Zealand GST Calculator helps you quickly determine the GST amount on a purchase or service. You can calculate GST by adding it to a net amount or removing it from a total amount.
When adding GST:
- GST Amount = Net Amount × GST Rate
- Total Amount = Net Amount + GST Amount
When removing GST:
- Net Amount = Total Amount ÷ (1 + GST Rate)
- GST Amount = Total Amount – Net Amount
In New Zealand, the standard GST rate is 15%, which applies to most goods and services. Some items are zero-rated or exempt from GST.
Adding Standard GST Example
Let’s say you want to calculate GST on a $100 product with the standard GST rate of 15%:
Net Amount = $100
GST Rate = 15% or 0.15
Calculate the GST amount:
GST Amount = $100 × 0.15 = $15
Calculate the total amount:
Total Amount = $100 + $15 = $115
Removing GST Example
Let’s say you have a total amount of $115 and want to calculate the net amount and GST:
Total Amount = $115
GST Rate = 15% or 0.15
Calculate the net amount:
Net Amount = $115 ÷ (1 + 0.15) = $115 ÷ 1.15 = $100
Calculate the GST amount:
GST Amount = $115 – $100 = $15
Zero-Rated Goods Example
For zero-rated goods like exports or financial services:
Net Amount = $100
GST Rate = 0% or 0.00
Calculate the GST amount:
GST Amount = $100 × 0.00 = $0
Calculate the total amount:
Total Amount = $100 + $0 = $100
New Zealand GST System
New Zealand has a Goods and Services Tax (GST) system with different treatments depending on the type of goods or services:
- Standard Rate (15%): Applies to most goods and services, including electronics, clothing, restaurant services, and most professional services.
- Zero Rate (0%): Applies to exported goods and services, financial services, and certain other supplies. Businesses can claim input tax credits on zero-rated supplies.
- Exempt Supplies: Some supplies are exempt from GST, such as residential rental accommodation, fine metals, and donated goods sold by non-profit organizations. Businesses cannot claim input tax credits on exempt supplies.
GST Rates by Category
Standard Rate
Zero Rate
GST Registration in New Zealand
In New Zealand, GST is administered by the Inland Revenue Department (IRD). Businesses must register for GST if their annual turnover exceeds $60,000. Registration is voluntary for businesses with turnover below this threshold.
Once registered, businesses must:
- Charge GST on taxable supplies at the appropriate rate
- Submit GST returns, usually every two months, six months, or annually
- Keep proper records of all transactions for at least 7 years
- Issue tax invoices for supplies over $50
- Remit any GST collected to the IRD
Businesses can choose their filing frequency based on their turnover and accounting preferences.
GST Compliance and Penalties
GST compliance is essential for businesses in New Zealand. The IRD imposes penalties for various non-compliance issues:
- Late Registration: Penalty based on the amount of GST that should have been collected
- Late Filing: Late payment penalty of 1% for each month the return is late, plus interest on any tax owed
- Shortfall Penalty: Ranges from 20% to 150% depending on the severity of the shortfall
- Incorrect Returns: Penalties for careless or deliberate errors in GST returns
Businesses can reduce penalties by voluntary disclosure of errors before the IRD detects them. It’s important to maintain accurate records and seek professional advice when needed.
Understanding New Zealand GST
What is GST?
Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption in New Zealand. It was introduced on 1 October 1986 at a rate of 10%, increased to 12.5% in 1989, and then to 15% in 2010. GST is administered by the Inland Revenue Department (IRD) and is a broad-based tax applied to most transactions.
GST History in New Zealand
New Zealand introduced GST in 1986 at a rate of 10%, replacing the previous wholesale sales tax. The rate was increased to 12.5% in 1989 and remained at that level for over 20 years. On 1 October 2010, the GST rate was increased to 15% as part of a tax reform package that also included personal income tax cuts. New Zealand’s GST system is considered one of the most comprehensive in the world.
GST Rates
New Zealand has a relatively simple GST system with just two main rates: standard (15%) and zero (0%). The standard rate applies to most goods and services. The zero rate applies to exported goods and services, financial services, and certain other supplies. Unlike many other countries, New Zealand does not have multiple reduced rates for different categories of goods and services.
Tax Invoices
Registered businesses must issue tax invoices for supplies over $50. A valid tax invoice must include: the words “Tax Invoice”, seller’s name and GST number, issue date, customer’s name, description of goods/services, quantity, price per unit, total amount, and GST amount or a statement that it is included in the total. Invoices must be issued within 28 days of the supply.
GST Returns
Registered businesses must file GST returns with the IRD. The filing frequency depends on the business’s turnover and preference: monthly, two-monthly, six-monthly, or annually. Most businesses file two-monthly returns. GST returns can be filed online through the IRD’s myIR system. Businesses must calculate the difference between GST collected on sales and GST paid on purchases, and pay the net amount to the IRD.
GST Schemes
New Zealand offers several GST schemes to simplify compliance for smaller businesses. The accounting basis method allows businesses to account for GST when payment is received or made (cash basis) rather than when invoices are issued or received (invoice basis). The ratio method is available for businesses with both taxable and exempt activities. There are also special rules for second-hand goods and farm animals.
New Zealand GST Information for Businesses
GST Registration Process
Businesses can register for GST online through the IRD’s myIR service, by phone, or by completing a GST registration form (GST 101). Required information includes business details, type of business, expected turnover, and banking information. Once registered, businesses receive a GST number and must start charging GST on taxable supplies from the effective date of registration. Registration typically takes 5-10 working days to process.
GST Accounting
Proper GST accounting is essential for compliance. Businesses must maintain accurate records of all sales and purchases, tax invoices issued and received, and any adjustments or corrections. Most businesses use accounting software to track GST transactions and generate reports. Records must be kept for at least 7 years and be available for IRD inspection upon request. Businesses must also account for GST adjustments for bad debts, discounts, and changes in use of assets.
International GST
Special GST rules apply to international transactions. Goods exported from New Zealand are zero-rated, while imports are subject to GST. For services provided to overseas customers, the place of supply rules determine whether GST applies. Generally, services consumed outside New Zealand are zero-rated. New Zealand has agreements with some countries to prevent double taxation of certain supplies.
Input Tax Credits
Businesses can claim input tax credits for the GST paid on their business purchases. This includes goods, services, and some capital items used in making taxable supplies. There are restrictions on claiming input tax for certain expenses, such as entertainment expenses and motor vehicles used for both business and personal use. Input tax must be claimed within the adjustment period, which is generally within two years after the end of the tax period.
GST Audits
The IRD conducts GST audits to ensure compliance. These may be triggered by risk assessment, random selection, or specific concerns. During an audit, the IRD will examine records, invoices, and financial statements. Businesses should prepare by maintaining accurate records, reconciling GST accounts regularly, and addressing any discrepancies promptly. The IRD may also conduct educational visits to help businesses understand their GST obligations.
GST Planning
Effective GST planning can help businesses manage their cash flow and minimize compliance costs. This includes proper timing of purchases and sales, understanding zero-rating opportunities, structuring transactions efficiently, and taking advantage of available schemes. Businesses should also consider the impact of GST on pricing and profitability. Professional advice is recommended for complex GST situations and international transactions.