New Zealand GST rates and GST compliance

New Zealand operates a Goods and Services Tax (GST) system rather than VAT. GST is administered by the Inland Revenue Department (IRD). 

The standard GST rate in New Zealand is 15%. Unlike many VAT systems, New Zealand applies very few reduced rates or exemptions.

Businesses registered for GST in New Zealand must apply the correct GST treatment on taxable supplies and remit the tax to Inland Revenue by submitting periodic GST returns.

Some supplies are exempt from GST in New Zealand. These include most financial services, residential rental accommodation, and certain supplies by charities and nonprofit organisations. Exempt supplies do not generate output GST and generally do not allow recovery of input GST. 

A GST number is required for businesses carrying out taxable activities in New Zealand. 

Both foreign and domestic businesses must register for GST when their taxable turnover exceeds NZD 60,000 in any 12-month period, or if they expect to exceed this threshold. This includes remote services (digital services) supplied to New Zealand consumers — offshore suppliers must register and charge New Zealand GST regardless of physical presence once the NZD 60,000 threshold is exceeded.

Get more information on GST registration in New Zealand.

GST-registered businesses in New Zealand must file GST returns either monthly, two-monthly, or six-monthly, depending on turnover and the option selected at registration. 

Returns include: 

• Output GST on sales 
  
• Deductible input GST on purchases 
   

All returns are submitted electronically through Inland Revenue’s online services (myIR). 

Get more information on GST returns in New Zealand. 

Foreign businesses storing goods in New Zealand must consider GST registration if those goods are held for sale.

• Holding inventory in New Zealand for sale generally creates a taxable presence and may trigger GST registration. 
• Imports of goods into New Zealand are subject to GST at the border, usually payable by the importer of record.  

New Zealand allows approved importers to defer payment of import GST under the Deferred Payment Scheme. Under this arrangement, import GST is reported and paid via the periodic GST return rather than at the time of customs clearance. Participation requires GST registration and approval by Inland Revenue and the New Zealand Customs Service. 

Foreign businesses supplying remote services (such as digital content, streaming, software, or online subscriptions) to New Zealand consumers must charge New Zealand GST once the NZD 60,000 threshold is exceeded.

• The standard GST rate (15%) generally applies. 
• Offshore suppliers must register under the remote services GST regime and file simplified GST returns.  

GST-registered businesses can generally recover input GST incurred on taxable business expenses through their GST returns. 

Nonresident businesses may register voluntarily to recover GST if they make or intend to make taxable supplies connected with New Zealand and meet registration requirements. 

There is no standalone nonresident GST refund scheme comparable to EU VAT refunds; recovery is typically achieved through GST registration. 

Exports of goods and many services supplied to customers outside New Zealand are zero rated for GST purposes. This means no GST is charged, while allowing recovery of input GST related to those supplies, provided export and documentary requirements are met. 

New Zealand does not operate an Intrastat system. Instead, trade in goods is monitored through customs import and export declarations submitted to the New Zealand Customs Service.

Businesses must issue GST-compliant tax invoices for taxable supplies, including: 

• Supplier and customer details 
• GST number 
• Description of goods or services 
• GST amount or a statement that GST is included 
  
  

Time of supply rules: 

• Goods: The time of supply is generally the earlier of issuing an invoice or receiving payment. 
• Services: The time of supply is usually the earlier of invoice issuance or payment. 
• Imports: GST is due at the time of customs clearance unless deferred under an approved scheme. 
   

Businesses must retain GST records for at least seven years. GST returns and payments are generally due by the 28th day of the month following the end of the reporting period (with some exceptions, such as the November period).