GST and E-Commerce

Should I charge GST on goods and services sold online?

Yes – All goods, services and digital products sold to customers in New Zealand, via any channel, are subject to GST charges at 15%.

Should you sell goods, services or digital products online to customers outside of New Zealand, you will not need to charge GST and these customers can be zero rated.

However, you will need to be able to prove that these goods were exported.

How do I prove my goods were exported?

For physical goods, you should provide a bill of lading showing export by sea, an airway bill or package delivery note, showing an overseas delivery address. Insurance documents and purchase orders with overseas delivery addresses are also useful.

For digital services or products you must ensure that the customer signs a declaration, at the time of the transaction, stating that they are located overseas and that the product or services will not be used in New Zealand.

Be sure to get the name and full address of the customer and note that whilst credit card information, email details and IP addresses can all help to prove a customer is based outside of New Zealand, none of these methods are guaranteed to be completely reliable indicators.

In short, you must be seen to be doing as much as possible to obtain proof of export.

Need to understand more about exports, online selling and GST?

Get in touch with us and we’d be happy to talk you through how all this applies to your business.

You can also find out more from the GST and ecommerce section of the IRD website.