GST NZ: What GST Is, the 15% Rate and Who Has to Charge It

Short answer: GST, goods and services tax, is a 15% tax added to the price of most goods and services sold in New Zealand, including most imports. Businesses registered for GST add it to their sales, claim back the GST on their business costs, and pay Inland Revenue the difference in a regular GST return. You must register once your turnover reaches $60,000 in 12 months; below that, registering is optional, and if you are not registered you cannot charge GST.

GST is run by Inland Revenue, and the rules below are those in force for the 2027 tax year (1 April 2026 – 31 March 2027). This page is the starting point for sole traders and small businesses: what GST is and how it works, with links to the guide for each practical step (calculating, filing and due dates) where it comes up. For how GST sits alongside income tax and ACC, see self-employed taxes in NZ, and for the rest of the series, the New Zealand guides hub.

What is GST in New Zealand?

GST is a tax on consumption: Inland Revenue describes it on what GST is as a tax added to the price of most goods and services in New Zealand, including most imported goods and services, charged by GST-registered people and organisations.

The cost lands on the final consumer. Businesses act as collectors along the way:

1. A registered business adds GST to what it sells.
2. It claims back the GST included in what it buys for the business.
3. It pays Inland Revenue the difference, or gets a refund if it paid more GST than it collected.

Example. A registered landscaper buys plants for $230 including GST, which contains $30 of GST. She sells the finished job to a homeowner for $1,150 including GST, which contains $150 of GST. In her GST return she owes $150 and claims $30, so she pays Inland Revenue $120. The homeowner, who cannot claim anything back, has borne the full $150.

How much is GST in NZ?

GST in New Zealand is 15%, the rate shown on Inland Revenue’s GST page. It has been 15% since 1 October 2010, when it rose from 12.5% under the Taxation (Budget Measures) Act 2010. Most sales carry that standard rate; the main exceptions are zero-rated and exempt supplies, covered below.

Because the rate is fixed, the arithmetic is too:

You want to…	Do this	Example
Add GST to a price	× 1.15	$200 → $230
Find the GST in a GST-inclusive total	× 3 ÷ 23	$230 → $30 of GST
Remove GST from a total	÷ 1.15	$230 → $200

The common mistake is taking 15% of a total that already includes GST. The GST in $230 is $30, not $34.50. The GST calculation guide has more worked examples and the rounding rules.

Who has to charge GST?

You must register for GST, and then charge it, if your turnover from a taxable activity was at least $60,000 in the last 12 months or you expect it to be at least $60,000 in the next 12. Inland Revenue’s registering for GST page gives you 21 days to register once that applies.

Four points sole traders often miss:

• The test is turnover, not profit. A tradie who bills $70,000 and clears $35,000 after materials is over the threshold.
• Registration below $60,000 is voluntary. It can suit you if your customers are mostly GST-registered businesses, which claim the GST back, or if you buy a lot of GST-inclusive equipment. The cost is a GST return every period for as long as you stay registered.
• If you are not registered, you must not charge GST. No ”+ GST” on quotes and no GST line on invoices.
• Once registered, you charge GST on all your taxable sales, whether the customer is a household or a GST-registered business.

You register in myIR. Your GST number is usually the same as your IRD number, according to Inland Revenue’s register for GST page, so a sole trader does not get a separate number to remember. How to become self-employed in NZ covers where GST registration fits in setting up.

What do GST-inclusive and GST-exclusive mean?

A GST-inclusive price already contains the GST; a GST-exclusive price (”+ GST” or “excl GST”) has GST still to be added. The difference is 15% of the exclusive price, and it is the most common source of pricing disputes.

Quote says	Customer pays	Your share	GST
$1,000 + GST	$1,150.00	$1,000.00	$150.00
$1,000 incl GST	$1,000.00	$869.57	$130.43

Business customers usually think in GST-exclusive prices, because they claim the GST back. Households pay the full GST-inclusive amount, so quote them the inclusive figure, the number they will actually pay. Either way, label every price “incl GST” or ”+ GST” so nobody has to guess.

On an invoice over $200, Inland Revenue lets you show either the GST-exclusive amount, the GST and the total, or a GST-inclusive total with a statement that GST is included. Its rules on taxable supply information set what else the invoice must show at each value: your GST number above $200, and the buyer’s details above $1,000 if the buyer is GST registered. The NZ invoice template lays this out ready to copy.

What are zero-rated and exempt supplies?

Not every sale carries 15%. A small number are zero-rated or exempt, and the difference between the two matters for what you can claim.

Type	GST charged	In your GST return?	Claim GST on related costs?	Examples
Standard-rated	15%	Yes	Yes	Most goods and services
Zero-rated	0%	Yes	Yes	Exported goods; sale of a business as a going concern between registered persons
Exempt	None	No	No	Financial services such as interest and bank fees; residential rent

Zero-rated supplies are taxable supplies charged at 0% when set conditions are met. Goods you export are the usual case for a small business, and the sale of a going concern needs both parties registered and the agreement recorded in writing.

Exempt supplies are outside GST altogether: you do not include them in your return. A landlord cannot charge GST on residential rent and cannot claim GST on the dwelling’s expenses such as maintenance, rates and insurance.

Most sole traders’ sales are standard-rated. If you are unsure about a particular sale, check Inland Revenue’s pages before you invoice it.

How does GST work for a sole trader, step by step?

Once registered, GST becomes a routine with four parts.

1. Charge GST at 15% on your taxable sales and show it on your invoices.
2. Keep the records for the GST in your business purchases. You can only claim GST on a purchase if you hold the supplier’s taxable supply information for it, such as their invoice or receipt.
3. File a GST return for each period: GST on sales minus GST on purchases. How to file a GST return walks through myIR box by box.
4. Pay the difference by the due date, or receive a refund if your claims were larger.

Two choices you make at registration shape the routine:

• Filing frequency. Monthly, two-monthly, or six-monthly if your sales are under $500,000 in any 12 months, according to Inland Revenue’s guide to choosing a GST basis and filing frequency. Returns and payments are due on the 28th of the month after the period ends, except 15 January and 7 May; the GST due dates page has every date for 2026–27.
• Accounting basis. The payments basis, open to businesses with sales of $2 million or less, counts sales when you are paid and costs when you pay them. The invoice basis counts them when invoiced. The payments basis suits many sole traders, because you never pay GST on money you have not received yet.

GST is not your income. Keep it separate from the start, ideally in its own bank account, and leave it out of your profit when you work out income tax.

Keeping GST records in order, and where does Keel fit?

Every GST return is built from two piles: the invoices you sent and the receipts for what you bought. If either is incomplete, you either pay too much GST or claim GST you cannot support.

Keel: Invoice Maker & Receipts, an iPhone app by Ilura Technology OÜ, keeps both piles in one place. You create quotes that become invoices in one tap, send PDF invoices, capture receipts and expenses, log business mileage, and file each under its job and customer. “Who owes you” lists unpaid invoices and prepares reminder drafts that you review and send yourself. Records stay on your iPhone: no account, no bank connection, no cloud sync, and the App Store privacy label reads “Data Not Collected”.

Keel does not register you for GST, file GST returns, connect to myIR or work out the GST you owe for a period. It keeps the records you or your accountant work from. It is free with no invoice limit (free invoices carry a small “Made with Keel” footer); Keel Lifetime is a one-time purchase of $249.99 USD (the App Store shows your local price) that adds custom branding, signature, premium templates and accountant-ready exports and reports. Keel on the App Store.

Frequently asked questions

What does GST stand for? GST stands for goods and services tax. In New Zealand it is a 15% tax added to the price of most goods and services, including most imports. Registered businesses collect it on their sales, claim back the GST on their business purchases, and pay Inland Revenue the difference through a GST return.

What percentage is GST in NZ? GST in New Zealand is 15%, and it has been since 1 October 2010, when it rose from 12.5%. To add GST, multiply a price by 1.15. To find the GST inside a GST-inclusive total, multiply by 3 and divide by 23, so a $115 total contains $15 of GST.

Do sole traders have to charge GST in NZ? Only once they are registered. Registration is compulsory if your turnover was at least $60,000 in the last 12 months or you expect it to reach $60,000 in the next 12, and you have 21 days to register. Below that you can register voluntarily. If you are not registered, you must not add GST to your prices.

Is my GST number the same as my IRD number? Usually, yes. Inland Revenue says your GST number will generally be the same as your IRD number when you register for GST. As a sole trader you use your personal IRD number for the business, so that same number is the GST number you show on invoices over $200.

What does zero-rated mean for GST? A zero-rated supply is a taxable supply charged at 0% GST, such as exported goods. You still include it in your GST return and can still claim the GST on costs related to it. An exempt supply, such as residential rent or bank fees, is outside GST altogether: no GST is charged and no GST on related costs can be claimed.

Does the ACC levy include GST? Yes. ACC levies carry GST. Inland Revenue publishes the earners’ levy including GST, $1.75 per $100 of liable earnings for 2026–27, while a self-employed person’s ACC invoice shows each levy before GST and adds the GST at the end.

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This article is general information, not tax advice. Consult a qualified New Zealand tax professional.