NZ GST Calculator 2026: Add or Remove 15% GST Instantly
Goods and Services Tax (GST) is a fact of life for New Zealand businesses and consumers. At 15%, GST is applied to the vast majority of goods and services sold in New Zealand. Whether you're a small business owner invoicing clients, a contractor working out your quotes, or simply a consumer trying to understand a price breakdown, knowing how to accurately calculate GST is an everyday necessity. This guide explains how NZ GST works, how to calculate it, and the rules that matter for businesses in 2026.
How to Calculate GST in New Zealand
There are two common GST calculations Kiwis need: adding GST to a GST-exclusive price, and removing GST from a GST-inclusive price (to find the GST component). Both are straightforward once you understand the formula.
- Adding GST to a GST-exclusive price: Multiply the price by 1.15. For example, a service quoted at $1,000 (excluding GST) becomes $1,150 including GST. The GST component is $150.
- Removing GST from a GST-inclusive price: Divide the price by 1.15. For example, a $1,150 invoice including GST has a GST component of $150 (calculated as $1,150 ÷ 1.15 × 0.15 = $150). The GST-exclusive price is $1,000.
GST Calculation Reference Table
Amount (excl. GST)GST (15%)Amount (incl. GST)
$10.00$1.50$11.50
$50.00$7.50$57.50
$100.00$15.00$115.00
$250.00$37.50$287.50
$500.00$75.00$575.00
$1,000.00$150.00$1,150.00
$2,500.00$375.00$2,875.00
$5,000.00$750.00$5,750.00
$10,000.00$1,500.00$11,500.00
$50,000.00$7,500.00$57,500.00
GST Registration in New Zealand
Businesses must register for GST if their annual turnover exceeds $60,000. This is the mandatory registration threshold. Once registered, you charge GST on your sales (output tax) and claim GST back on your business purchases (input tax). The net amount — output tax minus input tax — is what you pay to Inland Revenue Department (IRD).
Businesses earning less than $60,000 can voluntarily register for GST. This can be beneficial if your customers are predominantly GST-registered businesses (who can claim the GST back) and if you have significant GST-inclusive expenses to claim. However, voluntary registration adds administrative obligations, so it's worth discussing with an accountant.
GST registration is done through myIR, the IRD's online portal. Once registered, you'll receive a GST number which must appear on all invoices. There's no cost to register.
GST Filing Periods
GST-registered businesses file returns with the IRD on a regular basis. The three main filing frequencies are monthly (for large businesses with annual turnover over $24 million), two-monthly (the most common option for small to medium businesses), and six-monthly (for very small businesses with turnover under $500,000). The IRD assigns a filing frequency based on your turnover, though you can apply to change.
GST returns are filed and paid through myIR. Returns are due within 28 days of the end of each GST period. Late filing or payment incurs penalties and interest, so setting up automatic reminders is strongly advised. Many accounting software packages (Xero, MYOB, Figured) integrate directly with the IRD and can pre-populate your GST return.
Zero-Rated and Exempt Supplies
Not everything in New Zealand attracts 15% GST. Some supplies are zero-rated (GST-registered businesses charge 0% but can still claim input GST) and some are exempt (no GST charged and no input GST claimed).
Zero-rated supplies include most exports (goods and services supplied to overseas customers), certain financial services, sales of land used for farming, and some residential property transactions. Exempt supplies include financial services like bank interest, residential rent, and charitable donations.
The distinction matters: if you supply zero-rated services to international clients, you can still claim the GST back on all your NZ business expenses. If you make exempt supplies, you cannot claim input GST in proportion to the exempt revenue. Many NZ businesses have a mix of taxable and exempt supplies, which complicates the GST calculation and often requires accountant input.
GST for Contractors and Self-Employed Kiwis
Many self-employed Kiwis — tradespeople, consultants, freelancers, designers — hit the $60,000 threshold and need to register for GST. Once registered, every invoice needs to include GST. For example, a builder charging $1,000 per day adds $150 GST, invoicing the client $1,150. The $150 belongs to the IRD, not the builder.
A common mistake is treating the GST component as income. It isn't — it's collected on behalf of the government. Setting aside the 15% GST component in a separate account as you receive it prevents the painful experience of a large GST bill you haven't saved for.
Contractors can claim GST on legitimate business expenses: tools, materials, vehicle running costs (proportional to business use), professional fees, subscriptions, and more. Keeping clear records and receipts is essential. Good accounting software makes this considerably less painful.
GST on Imported Goods
GST applies to goods imported into New Zealand regardless of where they're purchased. Since 2019, overseas online retailers (including Amazon, eBay sellers, and others) selling to Kiwi consumers are required to collect and remit NZ GST on purchases under $1,000. For purchases over $1,000, GST is collected by Customs NZ at the border.
This means that many online purchases from overseas websites now include GST in the checkout price when shipping to a New Zealand address. If you're a GST-registered business purchasing from overseas, you may be able to claim the GST back through your GST return.
Frequently Asked Questions
What is the GST rate in New Zealand?
The GST rate in New Zealand is 15%, which has been unchanged since 2010 when it was increased from 12.5%. It is one of the higher GST/VAT rates in the OECD, though New Zealand compensates with relatively low income tax rates at lower income levels compared to many comparable countries.
Do I need to charge GST if I earn under $60,000?
No, if your annual turnover is under $60,000, you are not required to register for GST or charge it on your sales. You also cannot claim GST back on your expenses. If you're close to the threshold, monitor your turnover carefully — you must register within 21 days of exceeding $60,000.
Is GST charged on food in New Zealand?
Yes, unlike Australia and some other countries, New Zealand applies GST to food and groceries at the standard 15% rate. There are no food exemptions in the NZ GST system. This is one reason why the government periodically debates whether food should be zero-rated, particularly given the cost-of-living pressures on lower-income Kiwis.
How do I get a GST refund from the IRD?
If your input GST (GST paid on purchases) exceeds your output GST (GST charged on sales) in a period, you're entitled to a GST refund. This commonly happens for exporters, new businesses with high setup costs, or businesses with seasonal revenue. File your GST return through myIR and the refund is typically processed within 15 working days.
Do landlords charge GST on residential rent?
No, residential rent is exempt from GST in New Zealand. Landlords do not need to be GST-registered in relation to residential rentals and cannot claim GST on rental property expenses. Commercial property rentals are different — they are generally subject to GST if the landlord is GST-registered.
What is a tax invoice and what must it include?
A tax invoice is the document GST-registered businesses must issue for sales over $50. It must include your business name, GST number, the date, a description of the goods or services, the amount excluding GST, the GST amount, and the total including GST. For purchases under $50, a simplified invoice without the buyer's details is sufficient.
Can I claim GST on a vehicle purchased for business?
Yes, you can claim a proportion of the GST on a vehicle used for business purposes. The proportion must reflect actual business use versus personal use. If a vehicle is used 70% for business, you can claim 70% of the GST on purchase and running costs. You must keep a logbook to support the business-use percentage if audited by the IRD.
