This free GST calculator helps you quickly calculate goods and services tax. Perfect for freelancers, contractors, and small businesses in New Zealand.
GST, or goods and services tax, is a consumption tax applied to the sale of most goods and services in New Zealand. The GST rate is 15%.
GST applies whether you live in Christchurch, Auckland, Wellington, Dunedin, Hamilton, or anywhere in else in New Zealand.
You have to register for GST when you reach a turnover threshold of $60,000 in the last 12 months, or you expect to reach that threshold within the next 12 months.
Businesses that are registered for GST must
You have to register for GST when you reach a certain turnover threshold in 12-months.
| Types of business | Turnover threshold |
| Sole trader or freelancer | $60,000+ |
| Business | $60,000+ |
| Non-profit organisation | $60,000+ |
A GST calculator is a tool that helps you calculate goods and tax (GST) for your products or services. If you’re registered for GST, you have to include GST on your invoices, unless you sell zero-rated or exempt items.
The calculator helps you work out the price including or excluding GST, and to comply with the rules and regulations in New Zealand.
Add GST to the price
To figure out the total price with GST, simply multiply the original price by 1.15.
$100 x 1.15 = $115
Work out the GST amount to add
To figure out how much GST you’ll be charging, simply multiply the original price by 0.15.
$100 x 0.15 = $15
Exclude GST from the price
If you want the price without GST, divide by 1.15.
$115 / 1.15 = $100
Work out the GST amount that was added
To figure out how much GST was included in the price you can take the price with GST minus the price without GST.
$115 – $100 = $15
| Price including GST | GST amount | Price excluding GST |
| $100 | $15 | $115 |
| $200 | $30 | $230 |
| $300 | $45 | $345 |
| $400 | $60 | $460 |
| $500 | $75 | $575 |
| $600 | $90 | $690 |
| $700 | $105 | $805 |
| $800 | $120 | $920 |
| $900 | $135 | $1035 |
| $1000 | $150 | $1150 |
These are some examples of zero-rated goods and service in New Zealand:
You should consult a tax specialist or accountant for specific questions regarding your business.
Source: IRD.GOV.NZ
If your income exceeds $60,000 in the last 12 months, or you expect to earn that in the next 12 months, you have to register for GST. Once you’re registered, you have to charge GST to customers, file GST returns, pay any GST you owe to Inland Revenue, and keep GST records.
Staying on top of GST also makes it easier for you to keep accurate records in your business, complete your bookkeeping, and comply with tax regulations. Additionally, you’ll know exactly how much GST you have to pay to Inland Revenue or that you’ll get refunded—which will help you estimate cash flow—and you can avoid mistakes that can lead to fines and audits.
Finally, you’ll be able to factor in GST when you set your prices, which will help you charge the right amount for your goods and services.
See also: How to set the price of a product and how to set the selling price of a service
Common rates for businesses and freelancers that are registered for GST are charging the wrong GST rates. The rate should be 15%. The only exception is hotel stays longer than 4 weeks; this service has a GST rate of 9%.
You should also check to see if any items you sell are zero-rated, meaning they should be sold with 0% GST.
Another common GST mistake is keeping disorganized records: You should use
invoicing software to keep track of how much GST you’ve charged customers. Accounting software can help you keep track of how much GST you’ve paid to suppliers.
The GST rate in New Zealand is 15% for all goods and services. There are two exceptions.
Certain goods and services are zero-rated, meaning they should be sold with 0% GST—for example goods and services exported or provided outside of New Zealand.
The other exception is hotel stays longer than 4 weeks, which should be charged at a 9% GST rate.
To register for GST in New Zealand you’ll need the IRD number of your business, a bank account number for GST refunds, and information about your turnover in the last 12 months and expected turnover in the upcoming 12 months. You’ll also need your business industry classification code (BIC).
Once you have that, you can log onto myIR to register for GST.
If you’re a freelancer, contractor or business owner, you have to register for GST if you’ve earned more than $60,000 in the last 12 months, or you expect to earn that much in the coming 12 months.
Businesses that are registered for GST have to charge GST on their invoices, file GST returns, pay any GST you owe to Inland Revenue, and keep GST records. It’s a good idea to use invoicing software to keep track of how much GST you’ve charged customers.
A GST invoice is similar to a regular invoice, with a few exceptions. It should include:
– The header ‘tax invoice’
– The name of your business, your businesses’ IDR number, as well as your address and contact information
– The name and address of your customer
– The date the invoice was issued
– The date the invoice is due
– A description of the goods or services, including unit price and quantity
– The GST rate, GST amount and total GST
– The total amount that is due
– The payment terms, including instructions for how to pay
There are certain goods and services that should be sold with 0% GST. For a complete list, see the Inland Revenue website. For all other goods and services, the GST rate is 15%, with the exception of hotel stays longer than 4 weeks, which is charged at a 9% rate.
Zero-rated means that a product or service is sold with a 0% GST rate. For a complete list of zero-rated items, see the Inland Revenue website. Even if you’re registered for GST, you should not include a 15% GST rate on these items.
When you register for GST, you can choose how often you have to file GST returns. This is called a filing frequency. You can choose between monthly, two-monthly or six-monthly.
However, note that you can’t choose two-monthly if you earn more than $24 million in 12-months, and you can’t choose six-monthly, if you earn more than $500 000 in 12-months.
Read more about filing frequency on the Inland Revenue website.
The GST rate in New Zealand is 15%. You can calculate it manually, you can use a GST calculator or you can use invoicing software, which works out the GST for you when you add the unit price of your goods and services.
If you want to calculate it manually, you can multiply the original price by 1.15:
$100 x 1.15 = $115
The only service in New Zealand that has a 9% GST rate is long-term hotel accommodation, meaning stays that are longer than four weeks. All other goods and services should be charged at a 15% rate, so long as they’re not zero-rated.
Easily work out GST with a calculator
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