# Can I claim Advertising and Marketing (New Zealand) as a business expense in New Zealand?

**Yes, fully claimable.** 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.

Typical amount: NZD 5,000/month Google Ads (offshore, reverse-charge GST applies: net cost unchanged for registered businesses). NZD 2,000 local copywriting (NZ-based supplier, GST input credit claimed). NZD 10,000 new e-commerce platform build (capital, depreciated).

## 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. A business should keep the invoice and a note of what the campaign promoted. Costs of a campaign for a business launch before trading starts may need separate treatment as start-up costs.

## 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
- Sponsorship of a local team or event where the business receives real advertising in return

## 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
- Gifts of food and drink to clients, which fall under the entertainment limit

## 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.

Source: https://www.ird.govt.nz/gst/gst-for-overseas-businesses/imported-services

## Related expenses

- [Professional Fees (New Zealand)](https://accounts-os.com/nz/expenses/professional-fees-nz)
- [Equipment and Technology (New Zealand)](https://accounts-os.com/nz/expenses/equipment-nz)