Small Business Tax Dictionary
GST (Goods and Services Tax) — NZ
New Zealand's Goods and Services Tax (GST) is a value-added tax levied at 15% on most goods, services, and other items sold or consumed within the country.
How GST works in New Zealand
Businesses collect GST on behalf of the government, with end consumers bearing the final tax burden.
As a GST-registered business, you:
- Charge GST on qualifying supplies by adding 15% to your prices
- Claim GST back (as an input tax credit) on GST you've paid on business expenses
- File GST returns with Inland Revenue (IRD) — typically every one or two months, or every six months for smaller businesses
When do you need to register for GST?
You must register for GST if your turnover exceeds (or is expected to exceed) $60,000 in any 12-month period. If your turnover is below this threshold, registration is voluntary.
GST and invoices
Once registered, you must issue tax invoices for sales over $50 (including GST). Tax invoices must include your GST number, the date, a description of the goods or services, and the amount of GST charged.
Why GST compliance matters
Careful attention to pricing strategies, invoice documentation, and regulatory submissions is required to keep your GST obligations in order. Proper management supports business accuracy and regulatory compliance, and ensures you're not leaving GST refunds on the table.