Calculate GST in New Zealand using the standard 15% rate. Use the calculator to find GST-inclusive and GST-exclusive prices or determine how much GST is included in a price.
What is the GST rate in New Zealand?
The standard Goods and Services Tax rate in New Zealand is 15%. GST generally applies to most goods and services supplied by registered businesses in New Zealand, including many imported goods and services.
Some supplies are zero-rated, meaning GST applies at 0%, while other supplies are exempt from GST. The correct treatment depends on the type of transaction and whether the relevant conditions are satisfied.
Zero-rated supplies in New Zealand
Zero-rated supplies are taxable supplies on which GST is charged at 0%. A GST-registered business may generally claim GST credits for eligible expenses associated with making these supplies.
Examples of supplies that may be zero-rated include:
- Exported goods
- Certain services supplied to non-residents outside New Zealand
- International passenger transport
- Certain goods and services connected with exported vessels
- The sale of a going concern between GST-registered parties
- Certain transactions involving land between GST-registered parties
Each category has specific requirements. A supply should not be treated as zero-rated unless all relevant conditions are satisfied. See Inland Revenue’s zero-rated supplies guidance for further information.
GST-exempt supplies in New Zealand
Exempt supplies are not subject to GST and are not included as taxable supplies in a GST return. A business generally cannot claim GST credits for expenses associated with making exempt supplies.
Examples of exempt supplies include:
- Most financial services
- Residential rent
- Penalty interest
- Certain fine metals
- Donated goods and services subsequently sold by a non-profit organisation
Zero-rated and exempt supplies are treated differently. A zero-rated supply remains taxable at 0%, whereas an exempt supply falls outside the GST system for that transaction.
New Zealand GST history
Goods and Services Tax was introduced in New Zealand on 1 October 1986 at a rate of 10%.
The standard rate increased to 12.5% on 1 July 1989 and then to 15% on 1 October 2010. The standard rate has remained at 15% since that date.
GST is commonly translated into Māori as tāke hokohoko.
GST registration in New Zealand
A person or organisation carrying out a taxable activity must generally register for GST if:
- Its taxable turnover was at least NZ$60,000 during the previous 12 months
- It expects its taxable turnover to be at least NZ$60,000 during the following 12 months
- It adds GST to the prices of the goods or services it supplies
Businesses with taxable turnover below NZ$60,000 may generally choose to register voluntarily.
Once registered, a business normally charges GST on taxable supplies, claims eligible GST credits and files GST returns with Inland Revenue. Registration also involves choosing a filing frequency and an accounting basis.
Turnover calculations and registration requirements can depend on the nature and structure of the taxable activity. Check the current requirements through New Zealand Inland Revenue before deciding whether registration is required.
How to calculate New Zealand GST manually
To calculate the GST amount at the 15% rate, multiply the GST-exclusive price by 0.15.
For a GST-exclusive price of NZ$300.00:
- GST amount: NZ$300.00 × 0.15 = NZ$45.00
- GST-inclusive price: NZ$300.00 + NZ$45.00 = NZ$345.00
To calculate the GST-inclusive price directly, multiply the GST-exclusive price by 1.15:
- NZ$300.00 × 1.15 = NZ$345.00
To extract GST from a GST-inclusive price, multiply the inclusive price by 3 and divide it by 23.
For a GST-inclusive price of NZ$230.00:
- GST amount: NZ$230.00 × 3 ÷ 23 = NZ$30.00
- GST-exclusive price: NZ$230.00 − NZ$30.00 = NZ$200.00
Alternatively, divide the GST-inclusive price by 1.15 to find the GST-exclusive amount:
- NZ$230.00 ÷ 1.15 = NZ$200.00
Data source: New Zealand Inland Revenue’s GST guidance.
How do you get to the first amount. Calculate from bottom to top.
First amount : ?
Plus FAF : 11.94%
Plus GST: 5.17
Total : $5.95
Simply times the amount by 0.15 (15%) then add it the net cost
ie 950000 x0.15 = 142500
Gross is the sum of the two
0r 1092500
When a document states “$50,000.00 GST exclusive” what does this mean? Does it mean $50,000 + the 15% GST?
I believe exclusive means calculated without GST, to get the inclusive GST you would need to y x 1.15 = x (For NZ, I wouldn’t be sure for another country). If this helps.
I’m a treasurer for a charity and some of the income from a government department is taxed at 12.3%. The remittance shows the GST inclusive total. How do I work out the GST content for 12.3% please.
Hio Sue:
For starters, you don’t calculate the GST content for 12.3% –
The formula used to determine the GST component of a GST inclusive invoice is as follows:
Example – $500 invoice includes the 15% GST. (i.e. it’s GST inclusive)
1. Take the $500 purchase price and divide it by 1.15 = $434.7826086957 (then rounded down to$434.78)
2. Deduct $434.78 from the $500.00 purchase price
3. The balance of $65.22 is the GST component.
To verify the accuracy of this formula, simply multiply $434.78 by 1.15
Can someone please tell me how I add GST on a GST exclusive fee? For example, what is the GST inclusive fee of 1.14%
You can use this calculator and enter any GST % https://gstcalculator.net/any-gst-calculator/
To work out the 15% GST component on a GST inclusive amount:-
Gross amount, Multiplied by 3, then Divided by 23
will give you the GST content.
e.g. what is the GST component of $20.00 Gross?
20 * 3 / 23 = 2.6086956 The GST component is $2.61 (rounded up).
Gross amount $20.00
Less 15% GST $ 2.61
= Net amount $17.39
To verify, multiply Net amount of $17.39 by 15% GST and add the two together e.g.
17.39 * 15% = 2.6085 GST component
17.39 + 2.61 = 20.00
I use this calculator for my accountant task very great👏