New Zealand GST Calculator

Zero-rated (0% GST) supplies in New Zealand include:

• Exports of goods and services from New Zealand
• International transport services
• Most B2B land transactions between GST-registered parties (compulsory zero-rating rules)
• Sale of a going-concern business (where both parties are GST-registered and agree in writing)
• First sale of refined precious metals by a refiner

Zero-rated suppliers can still claim input tax credits on related business purchases — the same treatment as standard-rated supplies for input tax.

Exempt supplies in New Zealand include:

• Long-term residential rental accommodation (rental income from tenants)
• Most financial services — loans, life insurance, securities, foreign exchange
• Donated goods sold by non-profit organisations
• Penalty interest charges

Unlike zero-rated supplies, input tax on exempt supplies cannot be claimed. Businesses making both taxable and exempt supplies must apportion input tax. Note that, unlike Australia, basic food in NZ is not exempt or zero-rated — it is taxed at 15%.

Both result in no GST being charged to the customer, but they differ in input tax treatment:

• Zero-rated (e.g. exports, going-concern sales): no GST on the sale, but the supplier can claim input tax credits on related business expenses.
• Exempt (e.g. long-term residential rent, financial services): no GST on the sale, and the supplier cannot claim input tax credits on related expenses.

Exempt treatment effectively absorbs GST into the cost of the supply, while zero-rated treatment passes through the system at 0%.

Under section 10(6) of the GST Act, accommodation in a commercial dwelling (hotel, motel, hostel, boarding house, camping ground) for stays of more than 4 consecutive weeks qualifies for a reduced effective rate of 9%.

The mechanism: GST is charged on only 60% of the value of "domestic goods and services" (15% × 60% = 9% effective rate). If both parties agree up-front that the stay will exceed 4 weeks, the reduced rate applies from day one. Otherwise, the standard 15% applies for the first 4 weeks and the reduced rate kicks in after.

This rule does not apply to short-stay accommodation supplied through online marketplaces (Airbnb, Bookabach) — from 1 April 2024, those marketplaces must collect 15% GST on all bookings regardless of stay length.

IRD assigns or approves a filing frequency based on annual taxable supplies:

• Monthly — mandatory for businesses with annual taxable supplies above NZD 24 million (optional for smaller businesses)
• 2-monthly — default for businesses with annual taxable supplies between NZD 500,000 and NZD 24 million
• 6-monthly — available by election to businesses with annual taxable supplies under NZD 500,000

Returns are filed and paid through myIR. Even periods with no activity require a "nil" return — failing to file triggers automatic penalties.

For a calendar-aligned 2-monthly filer, returns are due the 28th of the month following the period end, with two special holiday extensions:

• 28 March — Jan/Feb return
• 7 May — Mar/Apr return (31 March year-end extension)
• 28 July — May/Jun return
• 28 September — Jul/Aug return
• 28 November — Sep/Oct return
• 15 January — Nov/Dec return (Christmas/New Year extension)

If the due date falls on a weekend or public holiday, the deadline shifts to the next working day. Specific filing periods are confirmed in your myIR account.

If a GST return is not filed by the due date, IRD imposes a late filing penalty that depends on your accounting basis:

• NZD 50 if you file on the payments basis
• NZD 250 if you file on the invoice or hybrid basis

This applies even to nil returns. Repeated non-compliance can result in IRD switching the business to monthly filing or pursuing prosecution. Late filing penalties accrue separately from any late payment penalties.

If GST is not paid by the due date, the late payment penalty regime is:

• 1% applied the day after the due date
• 4% additional penalty if still unpaid after 7 days

The further 1%-per-month incremental penalty does not apply to GST (it is excluded along with income tax, provisional tax, and Working for Families overpayments). Use-of-money interest (UOMI) also applies daily on overdue amounts at the prescribed rate. IRD may agree to instalment arrangements through myIR for taxpayers who cannot pay in full.

Yes. Businesses below the NZD 60,000 threshold can apply for voluntary registration through myIR. Common reasons include:

• Claiming input tax credits on business purchases (rent, equipment, professional services)
• Operating in a primarily B2B market where customers expect to claim back GST
• Preparing systems before mandatory registration is triggered

Voluntary registrants must comply with all GST obligations including filing regular returns and providing taxable supply information. There is no minimum holding period for voluntary registration — businesses can deregister if their circumstances change, though IRD may require GST to be paid on assets retained at deregistration (a "deemed supply" at market value).

From 1 April 2023, "tax invoices" were replaced by Taxable Supply Information (TSI) — a more flexible record-keeping framework. The old terms were renamed:

• Tax invoices → Taxable Supply Information (TSI)
• Credit and debit notes → Supply Correction Information (SCI)
• Buyer-created tax invoices → Buyer-created TSI

The required information is essentially the same as the old tax invoice rules, but the document title and format are no longer fixed. You can continue using the words "Tax Invoice" if your accounting system already does — IRD treats those documents as compliant TSI provided the required information is present.

The level of detail required depends on the value of the supply (GST-inclusive):

• Under NZD 200: No TSI required to be issued. The supplier must keep basic records (supplier name, date, description, amount).
• NZD 200 – 1,000: Must include supplier name, supplier GST number, date of supply, description of goods or services, and the amount of GST charged (or a statement that the price includes GST).
• Over NZD 1,000: All of the above plus the recipient's name and address (or other identifying details).

TSI must be provided to a GST-registered buyer within 28 days of a request for supplies over NZD 200.

Input tax credits can be claimed if all of the following apply:

• The business is GST-registered
• The purchase is used to make taxable supplies (not exempt or private)
• GST was charged on the purchase (or it falls within the second-hand goods rule)
• The required taxable supply information is held

The second-hand goods rule allows GST-registered buyers to claim a tax fraction (3/23) on goods bought from non-registered sellers — useful for businesses dealing in used vehicles, equipment, or stock. Credits are claimed on the GST return through myIR; the difference between GST collected on sales and GST paid on purchases is the net amount payable to or refundable from IRD.

GST-registered businesses must retain all GST-related records for at least 7 years. This is longer than many other jurisdictions (e.g. 5 years in Singapore and the UK). Records that must be kept include:

• Taxable supply information issued and received
• Supply correction information (credit and debit notes)
• Bank statements, ledgers, sales and purchase listings
• Import and export documentation
• Records supporting any input tax claims

Records can be kept in physical or electronic form. Without sufficient supporting records, IRD can deny input tax claims and impose shortfall penalties. Retention applies even if the business deregisters from GST.