New Zealand VAT Calculator 2026
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New Zealand GST: a single 15% rate, applied broadly
GST in New Zealand is one of the cleanest VAT-style systems in the world: a single 15% rate applied to almost everything. Unlike most EU countries, there are no reduced rates on food, books or hospitality. Politicians have repeatedly proposed reductions (most recently “remove GST from food”) but the broad-base/low-rate principle has been preserved since GST was introduced in 1986.
The 15% rate has been in place since 1 October 2010 (it was 12.5% before). Zero-rating applies to a narrow set of items, and a small list of supplies are exempt.
Registration threshold: NZD 60,000
You must register for GST if your turnover from taxable activity exceeds (or is expected to exceed) NZD 60,000 in a 12-month period. Below the threshold, registration is voluntary — common for B2B exporters who want to claim back input GST.
Non-resident sellers of remote services and low-value imported goods (≤ NZD 1,000 per item) have separate registration regimes (the “remote services rules” since 2016 and the “low-value imported goods rules” since December 2019). Above NZD 60,000 in supplies to NZ consumers, foreign suppliers must register and charge GST.
Zero-rated and exempt: what's in each bucket
- Zero-rated (0% — input GST recoverable): exports of goods, going-concern sales of business assets between two GST-registered parties, exports of services to non-residents, and (since 2018) certain B2B supplies of land between registered parties (compulsory zero-rating to prevent fraud).
- Exempt (no GST — input GST not recoverable): financial services (banking, insurance, securities, residential property leasing), and the supply of fine metals (e.g. gold bullion in specific forms).
- Out of scope: wages and salaries, donations to charities (with no benefit returned), sale of private assets.
Worked example
A Wellington consultancy bills a New Zealand corporate NZD 1,000 net for services. GST at 15% = NZD 150. Gross invoice NZD 1,150. To extract GST from a gross figure, divide by 23 and multiply by 3: NZD 1,150 × 3/23 = NZD 150.
Frequently asked questions
Why doesn't New Zealand zero-rate food?
The 1986 reform deliberately kept the GST base broad. Carving out food creates classification disputes (is a chocolate bar “food”?), reduces revenue, and benefits higher-income households more in absolute terms. NZ instead funds targeted income support and Working for Families tax credits to address regressivity.
Do I have to charge GST as an Etsy seller in NZ?
Only if your annual turnover crosses NZD 60,000. Below that you don't have to register; once you register, you charge 15% on all NZ sales and can recover GST on materials, postage, and platform fees. Etsy itself charges GST on its NZ-customer fees under the remote services rules.
When are GST returns due?
The default is two-monthly. Larger businesses (turnover > NZD 24 million) must file monthly. Smaller businesses can elect six-monthly. Returns are filed via Inland Revenue's myIR portal.
How does GST interact with PAYE/income tax?
They're separate. GST is a transactional consumption tax; PAYE/income tax is on profit/income. A registered sole trader files a GST return on sales and a separate income tax return on net profit. Neither replaces the other.
Are exports always zero-rated?
Yes if the goods leave New Zealand within 28 days of being supplied (or per the timeframe in the export documentation rules). Without proper export evidence, IR can reclassify the supply as standard-rated and assess GST plus penalties.
Official sources
Last reviewed: 2026-05-10.