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Changes to New Zealand GST – no problem

One of the biggest (and most anticipated changes) for The Budget just delivered by New Zealand’s Minister of Finance Bill English is that GST will rise from 12.5% to 15% effective 1 October.  You may be wondering what this means to you as a Xero user.

Well, the news is all good, Xero will be taking care of all the heavy lifting for you while you get on with more important things. This is a great example of the power of online software – you get to enjoy all the benefits of regular updates and new features without having to install any updates or pay anything extra. And from what you tell us this is important …

“Friends warned us that the software gets outdated and upgrades are expensive, plus they’re a real hassle to install. With Xero we get all the upgrades automatically for free.” – Penny Towns, Inspire Photography

So sit back, relax and look out for posts over the next few months explaining what we’ll be doing and how we’ll make the increase in GST a wee bit less painful.

We’ll also be posting more on The Budget…



20 May 2010 #

Can’t wait to talk to my friends who are still using MYOB, and will no doubt need to buy a new version come October 1st…

Charles Baker
21 May 2010 #

After the change has taken place and I need to enter in invoices from before 1 Oct, does it do everything at 15%, can i change it so it is still 12.5%? Sounds like i will be stuck with the new tax rate since you change it for me,

David Kime
21 May 2010 #

Hello from the UK. We have been through 2 VAT changes and Xero worked a treat. All done overnight by Xero and don’t worry about old invoices – we were left with both new and old rates.

Rod Drury
21 May 2010 #

Hi Charles, as David says we give you both rates but set the default for you to make it easy. We did this for the two VAT changes last year.,


7 December 2010 #


I have two questions:
1.What is the formula used to get a tax fraction of the 15% GST in New Zealand
2.Does New Zealand divide by the decimal of the 15% or the tax fraction to determine the GST portion of a GST Inclusive price

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