A Guide to New Zealand GST

What is GST?

GST is a general Goods, and Service Tax (GST) levied on most goods and services in the country. GST accounts for over 18% of New Zealand’s tax revenue, and the introduction of GST coincided with a reduction in income taxes. The tax initially was a 10% rate but has been increased twice to the 15% that it is today. Most merchants include GST in the listed prices for goods and services.  Some service industries like panel beaters are less likely to include GST in repair estimates. If you see a price listed as +GST, GST is not included in the listed price.

Items Exempt from GST

  • Purchases from duty-free stores
  • Goods and services sold by nonprofit organizations
  • Renting a residential dwelling
  • Supply of fine metal: gold, silver, and platinum 99%+ pure.
  • Financial Services

GST on Imported Goods

Currently, GST is assessed at customs for goods valued at $400 or more if ordered from an overseas source. New Zealand Customs often batches orders together, so even if it is in separate boxes, you will be charged GST if you receive $400 or more of products in one day.

New Zealand GST

There is currently legislation in the works to require international suppliers of goods to collect GST on low-value goods shipped to New Zealand if they ship over $60,000 of goods per year. The law requires GST to be collected on sales valued between $0.01-$1000. Products over $1000 will continue to have GST collected at customs. The proposed legislation would require online marketplaces like eBay to collect the tax and not individual sellers.

GST Refunds

Tourists are not eligible for GST refunds.

Calculating GST

A simple formula calculates GST. Multiply the price by 3, then divide by 23.  There are also websites that provide GST calculators.

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