Goods and Services Tax

What is Goods and Services Tax?

Goods and Services Tax (GST) is the tax paid on the supply of goods and services in New Zealand.

GST is applicable to all registered people on any taxable activity they carry out.


Do I need to register?

If your annual turnover is more than (or expected to be more than) $60,000, you are required to register for GST.


How much is GST?

GST is currently set at 15%, although it can be zero-rated for exports.


Are there any other exemptions?

Yes.

Certain supplies of goods and services are exempt from GST. These include:

  • Certain financial services
  • The sale/lease of residential properties
  • Wages/salaries and most Directors’ Fees

How much is GST?
You can file your GST returns monthly, every two months or every six months.

Depending on your circumstances you may be required to file your GST returns monthly or you may not have the option of six monthly returns.


How do I account for GST?
There are three ways of accounting for your GST:

  • Invoice Basis
  • Payments Basis
  • Hybrid Basis

Click here for IRD information on each method