Calculating GST and issuing tax invoices
If you’re a GST-registered business you must add GST to your prices. You also need to issue GST invoices to customers so they know the amount of GST being added to the bill and the total cost.
Let’s take a look at the maths and requirements of both.
How to add GST to prices
Once you're GST registered, you will need to put prices up by 15%. There's a very simple formula for doing that:
You can find useful GST calculators on the web – just search for ‘NZ GST calculator’. And don't forget that GST will not affect the prices of goods or services that are zero-rated, GST-exempt, or classified as special supplies.
What are tax invoices?
A tax invoice tells a customer how much GST they paid on a purchase. It’s important information because some of your customers may be able to claim that tax back. If you’re GST registered, you must issue a GST invoice on request.
Tax invoice example
Here’s what you need to put on a tax invoice.
Receipts versus tax invoices
A receipt printed at point of sale is called a tax invoice if it has all of this information on it. But don’t forget it must contain the words ‘tax invoice’.
Read the free ebook
Your quick guide to GST in New Zealand (1.3MB PDF)View the ebook