What is GST?

How can GST affect my business?

If you’re a business, you may be required to register for and collect GST. That means:

• you may need to add GST to your prices
• you will need to send that extra money to the IRD
• you can claim back any GST that you’re charged on business supplies

You can automate and file GST online using software like Xero.

How much is GST?

• 15% is the GST rate for most goods and services
• 0% is the GST rate for exports, and for land that is sold between GST-registered businesses

While you don’t collect any GST when the rate is 0%, you do need to report the sales on your return.

GST exemptions

Some goods and services are exempt from GST. Financial services, residential rent, and donated goods sold by non-profits fall into this category.

You should never charge GST on exempt goods or services. And if they’re all you sell, then you can’t register for GST. Learn more on this IRD page.

Special supplies

You might struggle to see where you sit with GST if you sell by auction or lay-by, sell secondhand goods, or lease goods. In these cases, it’s worth checking out the IRD page on special supplies.

How does GST work?

The GST on any item is designed to be paid by the consumer in the end, rather than by the businesses involved in its supply. Take this example:

GST on imports

You will have to pay GST on most imported goods. It’s added to the price you paid for the goods plus shipping costs, and you may have to pay it before customs will release the shipment. You can generally claim the cost back when submitting a GST return.

GST-registered businesses don’t have to pay GST on services or subscriptions from overseas suppliers.

GST on exports

You don’t have to charge GST on exports, which includes products you sell on the internet to overseas customers.

GST on listed services

If you provide a listed service such as ride-sharing and ride-hailing, food and beverage delivery, or short-stay and visitor accommodation there are changes from 1 April 2024. Online marketplace operators (resident or non-resident for tax purposes), who provide listed services, must collect and return GST of 15% when the service is performed, provided, or received in New Zealand. This will apply whether the seller is GST-registered or not. IRD has more information about the GST changes.