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NZ GST calculator
Add 15% GST to a price, or pull the GST back out of a GST-inclusive amount. The reverse calc uses 3/23, the bit that trips people up at GST-return time.
NZ GST is a flat 15%. Enter the price before GST.
Enter an amount to see the GST broken out: what to charge, what to set aside, or what's already inside the price.
How GST works in New Zealand
GST (Goods and Services Tax) is a flat 15% added to most goods and services in New Zealand. It has been 15% since 1 October 2010, when it rose from 12.5%. As a consumer you pay it on almost everything; as a business you collect it on what you sell and pass it on to Inland Revenue.
The maths trips people up in one place. To add GST, multiply the GST-exclusive price by 1.15: $100 becomes $115. To find the GST already inside a GST-inclusive price, multiply by 3/23 (which is 15 ÷ 115), not by 15%. So $115 contains $15 of GST. Taking 15% of the inclusive price over-states it, a common slip on invoices and returns.
You must register for GST once your turnover passes $60,000 in any 12-month period (it's optional below that). Once registered, you charge GST on your sales, claim back the GST on business expenses, and pay IRD the difference each return, usually every two months. Because that collected GST isn't really your money, the safest habit is to set it aside the moment it lands, so it's there at return time.
GST questions, answered
- What is the GST rate in New Zealand?
- GST in New Zealand is a flat 15%, and has been since 1 October 2010. It applies to most goods and services.
- How do I work out the GST included in a price?
- The GST inside a GST-inclusive price is 3/23 of it (15 ÷ 115), not 15%. For example, $115 includes $15 of GST. A common mistake is taking 15% of the inclusive price, which over-states the GST.
- How do I add GST to a price?
- Multiply the GST-exclusive price by 1.15 (or add 15%). So $100 excluding GST becomes $115 including GST, with $15 of GST.
- When do I have to register for GST in New Zealand?
- You must register for GST if your turnover is over $60,000 in any 12-month period (or you charge GST). Below that, registration is optional. Check ird.govt.nz for the current rules.
- Can I claim GST back on business expenses?
- If you're GST-registered, you can claim back the GST on most business purchases (your input tax) and offset it against the GST you collect on sales (output tax). You pay IRD the difference, or get a refund when your inputs are higher.
- How often do I file a GST return?
- Most small businesses file every two months. You can file monthly, or six-monthly if your turnover is under $500,000. Pick what suits your cashflow; the GST you've collected is due when the return is.
- Are any sales GST-free?
- Some supplies are zero-rated (0% GST, such as exports) and others are exempt (no GST, such as residential rent and most financial services). They're handled differently on your return, so check ird.govt.nz or your accountant if you're unsure.
Track the GST you set aside.
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