What is GST (Goods and Services Tax) New Zealand?
New Zealand GST is a 15% consumption tax on most goods, services and other supplies. Businesses with taxable turnover exceeding NZD 60,000 in any 12-month period must register. Two-monthly returns are due by the 28th of the following month.
Current Rate (Two-monthly periods (default). Three-monthly available for turnover under NZD 500,000. Monthly for turnover over NZD 24 million.)
15% standard. Zero-rated: exports, certain financial services and land transactions between GST-registered parties.
Example
A NZ consultancy invoices NZD 115,000 (including NZD 15,000 GST) in a two-month period and paid NZD 23,000 (including NZD 3,000 GST) on business costs. It remits NZD 12,000 net GST to IRD by the 28th of the following month.
How GST (Goods and Services Tax) New Zealand works in New Zealand
New Zealand introduced GST in 1986 at 10%, raised to 12.5% in 1989 and to its current 15% in 2010. It is one of the broadest-based consumption taxes in the OECD, with very few exemptions compared to countries like Australia or the UK.
**What Is Exempt vs Zero-Rated** Financial services (interest, insurance premiums, mortgages) and residential rents are exempt (input-taxed): you do not charge GST on these supplies and you cannot claim input tax credits on costs that relate to them. Exports and certain international services are zero-rated: you charge 0% GST but you CAN still claim input credits on costs. This distinction matters significantly for businesses with mixed supplies.
**Registration Threshold** Registration becomes compulsory when taxable supplies exceed NZD 60,000 in any 12-month period (rolling), or when you expect to exceed that threshold in the next 12 months. Voluntary registration is permitted below the threshold and is often worthwhile for start-ups incurring significant GST-bearing costs before revenue begins.
**GST Invoicing** For supplies over NZD 1,000 (GST-inclusive), you must issue a valid tax invoice showing: supplier name, GST number, date, description of goods or services, and the GST amount or a statement that GST is included at 15%. For supplies under NZD 1,000, a simplified tax invoice is acceptable.
**Filing Periods** Most businesses file two-monthly: period ends are 31 January, 31 March, 31 May, 31 July, 30 September and 30 November, each due by the 28th of the month following the period end. Two exceptions apply: the period ending 30 November is due 15 January (not 28 December, which falls in the holiday period), and the period ending 31 March is due 7 May (aligning with provisional tax and the end-of-year payment date).
**Imported Digital Services** Since 1 October 2016, offshore suppliers of digital services (software, streaming, online advertising) to NZ consumers must register and charge GST. For GST-registered NZ businesses purchasing digital services from unregistered offshore suppliers (such as Google Ads or Meta Ads), a reverse-charge applies: the NZ business accounts for GST as both a supply and a purchase, allowing the 15% to wash through on the GST return with no net cost.
**Input Tax Credits** A GST-registered business can claim a credit for GST paid on business inputs. The credit is claimed in the GST return for the period in which the tax invoice is received. Mixed-use assets (partly business, partly private) require an apportionment calculation.
Related terms
New Zealand companies pay a flat 28% corporate income tax rate on net taxable income. Maori authorities pay 17.5%. The imputation system prevents double taxation by attaching tax credits to dividends paid to shareholders.
The IR4 is the annual income tax return filed by New Zealand companies. It reconciles accounting profit to taxable income by adjusting for non-deductible items and IRD depreciation differences. Due 7 July for standard 31 March balance date companies, or 31 March following year via a tax agent.
Provisional tax is income tax paid in instalments during the year rather than all at once after filing. The standard method sets each instalment at one-third of 105% of the prior year's residual income tax. Three instalments fall due on 28 August, 15 January and 7 May.
An IRD number is the 8 or 9-digit tax identification number issued by Inland Revenue to individuals, companies and other entities in New Zealand. It is required to pay tax, employ staff, register for GST, and open a business bank account. The NZBN (NZ Business Number) is the separate 13-digit public business identifier.
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