Can I Claim Advertising and Marketing (New Zealand) as a Business Expense in New Zealand?
Online advertising, print, radio, outdoor, SEO, and content marketing are fully deductible when incurred for business promotion. GST-registered businesses purchasing digital advertising from offshore platforms must account for reverse-charge GST at 15% — but also claim it back, resulting in no net cost.
What Inland Revenue (IRD / Te Tari Taake) says
Advertising and promotional expenses for revenue purposes are deductible under Section DB 1 of the Income Tax Act 2007. Website development costs must be analysed: design, content creation, and ongoing updates are revenue (fully deductible). Creating or acquiring a new website platform may be capital (depreciated at IRD software rates). Reverse-charge GST under Section 8(4B) applies to imported digital advertising services purchased from offshore providers.
When you can claim
- Google Ads, Meta Ads, LinkedIn advertising, and other digital advertising spend
- Print, radio, outdoor, and television advertising for the business
- SEO, copywriting, content creation, and ongoing website updates
- Trade show exhibitor fees, promotional materials, and branded merchandise
- Social media management and influencer marketing costs directly promoting the business
When you cannot claim
- Costs of registering a brand, trademark, or patent — these are capital and not deductible as advertising, though amortisation may be available
- Sponsorship payments with a primary personal benefit to the owner that cannot demonstrate a genuine business promotional purpose
- Prepaid advertising costs covering future periods beyond 6 months may need to be spread
Good to know
Pro tip: For offshore digital advertising (Google, Meta, etc.), GST-registered businesses add 15% GST to the invoice amount in their GST return under 'imported services' and also claim it as an input credit — the net cost is zero. Non-registered businesses bear the 15% GST with no recovery.
Important: Reverse-charge GST on offshore digital advertising applies only to GST-registered businesses. Non-GST-registered businesses bear the 15% as a real cost with no recovery mechanism.
Stop guessing what you can claim in New Zealand
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