GST Calculator

New Zealand's Goods and Services Tax (GST) rate is 15%, which has applied to most goods and services sold in New Zealand since 1 October 2010 when it was raised from 12.5%. GST is a broad-based consumption tax and is included in the price of most things you buy — from groceries to professional services. Unlike many countries, New Zealand's GST has very few exemptions: financial services, residential rent, and donations are among the rare exceptions. For businesses, GST collected from customers is offset against GST paid on business expenses (input tax credits), and the net amount is remitted to IRD. With a 15% rate, New Zealand has one of the more straightforward GST systems in the world. Source: IRD — GST (ird.govt.nz/gst).

To add 15% GST to a GST-exclusive (ex-GST) price, multiply the price by 1.15. For example, a product priced at $100 before GST becomes $115 including GST ($100 * 1.15 = $115). The $15 difference is the GST component. This calculation is used by businesses when pricing their goods and services for GST-registered customers who need to see the GST-inclusive price. On invoices and receipts in New Zealand, businesses must clearly show the GST-inclusive price, and if the amount is $1,000 or more, they must also show the GST amount separately. The formula works for any amount: a $450 service becomes $517.50 including GST. Source: IRD — Calculating GST (ird.govt.nz/gst).

To find the GST-exclusive price from a GST-inclusive price, divide by 1.15. For example, $115 / 1.15 = $100 (the ex-GST price), and the GST component is $15. An alternative method is to divide by 23 and multiply by 3 to find the GST amount alone (e.g., $115 / 23 * 3 = $15). This is important for businesses that need to claim GST back on purchases — you can only claim the GST portion, not the full GST-inclusive amount, as an input tax credit. For example, if you buy office supplies for $460 (GST-inclusive), the GST you can claim back is $460 / 1.15 * 0.15 = $60. Always keep tax invoices to support GST claims. Source: IRD — Claiming GST (ird.govt.nz/gst).

You must register for GST if your business turnover is or is expected to be $60,000 or more in a 12-month period — this threshold has been in place since 2009. Once registered, you must charge GST on your sales, file GST returns (usually every two months), and pay the net GST to IRD. You can voluntarily register even if your turnover is below $60,000, which can be advantageous if you have significant GST expenses you want to claim back. For example, a freelancer earning $50,000 who spends $10,000 on equipment could benefit from voluntary registration to reclaim $1,304 in GST. Penalties apply for failing to register when required. Registration is done through myIR on the IRD website. Source: IRD — Registering for GST (ird.govt.nz/gst/registering-for-gst).