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.
Finn does your books in New Zealand
AccountsOS runs full accounting for New Zealand businesses, tax, expenses and deadlines, in plain English. Ask Finn about yours, no signup needed.
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
AccountsOS automatically categorises expenses with Inland Revenue (IRD / Te Tari Taake)-aware rules and tells you exactly what is claimable.
Try Free