New Zealand · 2026/27
New Zealand VAT calculator
New Zealand charges GST (goods and services tax) at a single standard rate of 15% on nearly everything sold in the country. There are no reduced bands for food, books or energy, which keeps the system unusually clean: a price either carries 15% GST, is zero-rated at 0% (mainly exports), or sits outside GST entirely. Use this tool to add GST to a net figure or pull it out of a GST-inclusive price.
How it works
- Adding GST: multiply the GST-exclusive price by 15%. A NZ$200 net price attracts NZ$30 GST, giving NZ$230 all up.
- Removing GST: divide the GST-inclusive price by 1.15. NZ$230 divided by 1.15 gets you back to NZ$200 net.
- Kiwi shortcut: the GST inside any inclusive price equals that price multiplied by 3 and divided by 23. For NZ$230, that is 230 x 3 / 23 = NZ$30.
gross = net x 1.15; GST component of a gross price = gross x 3 / 23
With a single 15% rate, every calculation reduces to one multiplier. Going from exclusive to inclusive means multiplying by 1.15. Going back means dividing by 1.15, and because 15/115 simplifies to 3/23, the GST buried in any inclusive price is exactly three twenty-thirds of it.
- net
- GST-exclusive price in NZD
- gross
- GST-inclusive price in NZD
New Zealand GST against comparable economies
| New Zealand | 15% | Single rate, almost no carve-outs |
| Australia | 10% | GST, but basic food is GST-free |
| Singapore | 9% | GST raised to 9% in 2024 |
| United Kingdom | 20% | VAT with 5% and 0% bands |
| Japan | 10% | Consumption tax, 8% on food |
Worked example
A tradesperson quotes NZ$1,500 excluding GST for a fencing job GST of NZ$225 is added (1,500 x 0.15), so the invoice totals NZ$1,725. Checking the other way, 1,725 x 3 / 23 returns the NZ$225 GST component.
Key facts
- New Zealand applies 15% GST to food, which most countries relieve; the OECD regularly cites NZ as having one of the broadest consumption tax bases in the world.
- The compulsory GST registration threshold is NZ$60,000 of turnover in a 12 month period.
- Since 2016 overseas suppliers of digital services to NZ consumers must charge 15% GST, and since 2019 the same applies to imported low-value goods up to NZ$1,000.
- The 3/23 fraction gives the exact GST share of any inclusive price, handy for receipts that only show a total.
Tips
- When comparing tradie quotes, confirm each one is on the same GST footing; a "plus GST" quote is 15% dearer than it first looks.
- GST-registered businesses should record the GST-exclusive amount in their accounts and claim input credits through their GST return rather than treating GST as a cost.
- Selling to overseas customers? Check the zero-rating rules before invoicing at 15%, because exports done properly carry 0% GST.
Frequently asked questions
What rate of GST does New Zealand charge?+
The rate is 15% and has not moved since 1 October 2010, when it rose from 12.5%. It covers almost every sale a GST-registered business makes, including groceries, restaurant meals, electricity, clothing and professional services.
Which supplies are zero-rated at 0%?+
Mostly things leaving the country: exported goods, services physically performed overseas, duty-free sales to international travellers, exported vessels, and the first sale of refined gold, silver or platinum by a refiner. The sale of a business as a going concern between two GST-registered parties is also zero-rated, as are many land transactions between registered persons.
What is exempt from GST altogether?+
Financial services such as interest, loans and bank fees, rent on a residential dwelling, penalty interest on overdue accounts, fines, and goods that were donated to a non-profit body and later sold by it. Exempt supplies sit outside the GST net, so no GST is charged and no input credits can be claimed against them.
How is zero-rated different from exempt in New Zealand?+
A zero-rated sale is still a taxable supply, just at 0%, so the seller can claim back GST on its own costs. An exempt supply, such as residential rent, is outside GST entirely and the supplier cannot recover GST on related expenses.
When does a business have to register for GST?+
Registration with Inland Revenue is compulsory once turnover from taxable activity exceeds NZ$60,000 in any 12 month period, or is expected to. Below that, registering is voluntary, which some small operators do to reclaim GST on their costs.
Do advertised prices in New Zealand include GST?+
Prices shown to consumers normally include GST. Quotes between businesses are often given as GST-exclusive figures with the 15% added on the invoice, so always check whether a quote says plus GST.
Things to watch
- This tool gives an arithmetic split of a price at the rate you pick. It is not tax advice; whether a particular supply is standard-rated, zero-rated or exempt depends on the GST Act and your circumstances, so confirm with Inland Revenue or an accountant before filing.
- Special rules (long-stay accommodation, secondhand goods credits, mixed-use assets) change the GST sum and are not modelled here.
Sources
- Charging GST · Inland Revenue (IRD)
- Zero-rated supplies · Inland Revenue (IRD)
- Exempt supplies · Inland Revenue (IRD)
- Registering for GST · Inland Revenue (IRD)
Last updated: 2026-06-10 · Applies to 2026/27
This is an estimate for general guidance, not financial, tax, legal or medical advice. Figures can change and individual circumstances vary. Always confirm with the official sources listed before making decisions.
- GST has been 15% since 1 October 2010; before that it was 12.5%, and 10% at its 1986 introduction.
- Long-stay guests in commercial dwellings such as motels (beyond four weeks) have GST applied to only 60% of the charge, an effective 9%. Treat such cases separately rather than with this calculator.
Reviewed by Vikas Dulgunde.