Your guide to the Goods & Services Tax (GST)

Everything you need to know about GST including thresholds, rates & how to register for it!

What is GST?

GST stands for goods and services tax. It’s a 15% tax that’s added to nearly everything you buy in New Zealand.  Learn more in our article below.

Government assistance packages.  New Zealand will be rolling out a range of support packages and assistance aimed at reducing economic impacts on businesses due to COVID-19. It’s one of the largest in the world on a per capita basis and businesses are being urged to make full use of what is available to them. Let’s review the primary business support measures being rolled out.
Government assistance packages.  New Zealand will be rolling out a range of support packages and assistance aimed at reducing economic impacts on businesses due to COVID-19. It’s one of the largest in the world on a per capita basis and businesses are being urged to make full use of what is available to them. Let’s review the primary business support measures being rolled out.

How to register for GST

If your annual turnover is above $60,000, you’ll need to register for GST with the IRD. Check out our article below for more information on how to get registered with the IRD.

How to calculate GST

As a GST registered business you need to increase your prices by 15%. Check out our article below for more information and the formula you can use to calculate GST.

Government assistance packages.  New Zealand will be rolling out a range of support packages and assistance aimed at reducing economic impacts on businesses due to COVID-19. It’s one of the largest in the world on a per capita basis and businesses are being urged to make full use of what is available to them. Let’s review the primary business support measures being rolled out.
Government assistance packages.  New Zealand will be rolling out a range of support packages and assistance aimed at reducing economic impacts on businesses due to COVID-19. It’s one of the largest in the world on a per capita basis and businesses are being urged to make full use of what is available to them. Let’s review the primary business support measures being rolled out.

How to claim back GST

GST registered businesses can claim back a credit for any GST they have paid on business related expenses such as inventory, stationary, machinery etc. This is called an input tax credit, or a GST credit. Learn more in our article below.

Frequently asked questions

When did GST start in New Zealand?

Goods and Services Tax (GST) came into effect in 1986. Its purpose was to overhaul the taxation system and rectify a large budget deficit.

What is the GST threshold?

The GST threshold is a GST turnover of $60,000. You must register for GST and in these circumstances:

    • your turnover was at least $60,000 in the last 12 months, or you expect it will be at least $60,000 in the next 12 months
    • you add GST to the price of the goods or services you sell.

Learn more >

What is GST turnover?

GST turnover is the gross income (before tax) of your business, excluding the 15% GST charged in sales to your customers. Turnover is not the same as profit. Profit is the money you have after you’ve paid your expenses.

What is the GST on exports?

If your business exports goods and services overseas from New Zealand they are generally zero-rated GST supplies. That means the exported goods are billed at GST of 0%; and you can claim back input GST.   

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