Table of Contents
Introduction to GST Calculators
Goods and Services Tax (GST) is one of the most widely misunderstood parts of day-to-day money management in New Zealand. Whether you’re self-employed, running a small business, issuing invoices as a contractor, or simply checking whether a price already includes GST, getting the numbers right matters. Even a small miscalculation can cause IRD issues, incorrect pricing, or reduced profitability.
This expanded guide walks you through exactly how GST works, how to add or remove GST using simple formulas, how GST applies to different industries, and how you can easily generate GST-accurate quotes using the calculator widget below. This article also includes helpful examples and internal links to related tools and financial guides across NewZealand-Finance.nz, giving you a complete NZ-based toolkit for managing GST correctly all year round.
Fast GST Calculator for New Zealand
Paste the HTML + JS widget below into WordPress (HTML block):
📌 GST Calculator Widget (GST-Inclusive & GST-Exclusive)
You now have a 100% working NZ GST calculator widget that adds and removes GST.
What Is GST in New Zealand?
GST (Goods and Services Tax) is a flat 15% tax on most goods and services sold in NZ. When you buy items in-store or online, the displayed price almost always already includes GST. However, when providing professional services (e.g. construction, consulting, freelancing), you normally quote GST-exclusive and then add GST for clarity.
GST applies broadly to:
- Professional services
- Retail purchases
- Building and trades
- Online digital services
- Hospitality and events
GST does not apply to:
- Residential rent
- Financial services
- Private non-business sales
- Certain exported goods and services
If you want to understand broader financial rules around NZ income and thresholds, check related guides like:
🔗 NZ Tax Rates Guide
How to Add, Remove, and Extract GST (NZ Formulas)
Understanding the maths behind GST ensures accuracy in invoices, expenses, and compliance.
Add GST to a price (GST-exclusive → inclusive)
Formula:
Amount × 1.15
Remove GST from a price (GST-inclusive → exclusive)
Formula:
Amount ÷ 1.15
Extract the GST portion only
Formula:
(Amount ÷ 1.15) × 0.15
These formulas are universal across all NZ industries.
Worked GST Examples Using Real NZ Scenarios
Example 1: Contractor Invoice
A tradie quotes $2,400 + GST.
GST = $360
Final invoice = $2,760
Example 2: Removing GST from eCommerce Revenue
Online store receives $1,150 in sales (GST inclusive).
Exclusive = $1,150 ÷ 1.15 = $1,000
GST = $150
Example 3: Café Transaction
Coffee + food = $28.75
Exclusive = $25
GST = $3.75
If your business handles invoices or loans too, see:
🔗 Invoice Finance Guide — https://newzealand-finance.nz/understanding-loans-in-new-zealand/
Comparison Table: GST Breakdown by Price Level
| GST Inclusive | GST Exclusive | GST Portion |
|---|---|---|
| $115 | $100 | $15 |
| $230 | $200 | $30 |
| $575 | $500 | $75 |
| $1,150 | $1,000 | $150 |
| $2,587.50 | $2,250 | $337.50 |
Why Accurate GST Calculations Matter
A correct GST calculation affects:
- Profit margins
- Cashflow
- Client trust
- IRD filings
- Business budgeting
If you undercharge GST, you must still pay IRD the correct amount, reducing your margin.
If you overcharge GST, you could breach consumer law.
For broader money optimisation, see:
🔗 Best Savings Accounts NZ
🔗 Best Investments NZ
Should You Register for GST?
You must register for GST if your income exceeds $60,000 per year from taxable activities.
Registering early can help if:
- You invest in equipment
- You claim GST on large business expenses
- Your clients are GST-registered
Learn more about self-employed income here:
🔗 NZ Contractor Income Guide
Filing GST Returns (Step-by-Step)
- Collect invoices (sales + expenses)
- Add GST collected on your sales
- Subtract GST paid on business purchases
- The difference = amount you owe IRD (or refund due)
- File via myIR
- Make payment before due dates to avoid penalties
For loan or debt management, check:
🔗 Debt Consolidation NZ
Industry-Specific GST Examples
1. Building & Trades
Quotes are usually GST-exclusive.
Adding GST is standard practice to avoid confusion.
2. Contractors / Freelancers
Graphic designers, consultants, and marketing specialists often charge exclusive prices and add GST at invoice stage.
3. Retail & eCommerce
Prices shown to customers must be GST-inclusive by law.
4. Tourism & Events
Tickets usually show GST-inclusive pricing for transparency.
GST FAQs
Do all NZ businesses charge GST?
No — only those registered.
Can I voluntarily register below $60,000?
Yes — often beneficial for equipment-heavy businesses.
Is GST included in mortgage payments?
No — mortgages are a financial service and exempt.
🔗 Mortgage Calculator NZ
Do online digital services include GST?
Yes — subscriptions and apps include GST if supplied to NZ residents.
Can GST-registered entities claim GST on every business expense?
No — entertainment, financial services, and some mixed-use expenses have restrictions.
How do I calculate GST in New Zealand?
GST in NZ is 15%. To add GST, multiply the price by 1.15. To remove GST, divide the price by 1.15.
What is the fastest way to add or remove GST?
Using a GST calculator is quickest—it instantly converts GST-exclusive to inclusive and extracts the GST portion.
What is the GST rate in New Zealand?
The GST rate is a flat 15% on most goods and services sold in NZ.
How do I remove GST from a price?
Divide the GST-inclusive amount by 1.15 to get the GST-exclusive amount.
How do I find the GST amount only?
GST portion = (GST-inclusive price ÷ 1.15) × 0.15.
Do I need to charge GST if I earn under $60,000?
No — you only need to register for GST once you exceed $60,000 turnover in any 12-month period.
Can I voluntarily register for GST in NZ?
Yes, businesses can register voluntarily, especially if they want to claim GST on expenses.
Do all NZ prices include GST?
Retail prices must include GST by law, but contractor and business quotes often show GST-exclusive pricing.
How do I calculate GST for an invoice?
Add GST (15%) to the subtotal and clearly show: GST-exclusive amount, GST amount, and GST-inclusive total.
Does GST apply to online services in NZ?
Yes — most digital services (apps, subscriptions, software) charge GST to NZ customers.
Do tradies charge GST separately?
Most tradies quote GST-exclusive prices and add 15% GST to the final invoice.
What items are exempt from GST in NZ?
Residential rent, financial services, and private non-business sales are common exemptions.
What happens if I accidentally overcharge GST?
You must refund the customer or adjust the invoice—you cannot keep excess GST.
What happens if I undercharge GST?
You must still pay the correct GST to IRD, which reduces your profit on the job.
What are zero-rated GST items?
Exports and certain international services are zero-rated (0% GST), but still require GST reporting.
Can I claim GST on all business expenses?
You can claim GST on most business costs, but not on some entertainment, financial services, or mixed-use purchases.
How do I calculate GST for self-employed income?
Take your GST-exclusive charge-out rate, add 15%, and issue invoices showing GST separately.
When are GST returns due in NZ?
Most small businesses file GST returns two-monthly, but some file monthly or six-monthly depending on revenue.
Can GST be claimed on a vehicle purchase?
Yes, if the vehicle is used for business and you are GST-registered (with some restrictions for mixed use).
Where can I find a free GST calculator for NZ?
Right here — use the free GST Calculator NZ widget provided on this page for instant GST-exclusive, GST-inclusive, and GST-portion calculations.
Final Summary Table
| Topic | Key Info |
|---|---|
| GST Rate | 15% |
| Add GST | Multiply by 1.15 |
| Remove GST | Divide by 1.15 |
| GST Threshold | $60,000 turnover |
| Filing | myIR portal |
| Main Benefit | Claim GST on expenses |
| Common Mistake | Using 0.85 instead of 1.15 |
