Tax, ACC and GST

What is GST?

Last verified · Methodology

What it means

Goods and Services Tax is charged at 15% on most goods and services supplied in New Zealand. Businesses with turnover of $60,000 or more over 12 months must register, charge GST on their sales and claim back the GST on their business costs, filing returns monthly, two-monthly or six-monthly.

Prices to consumers are normally shown GST-inclusive. Because 15% on top of 100 gives 115, the GST share of an inclusive price is 15/115, which simplifies to 3/23. Financial services and residential rent are exempt, and some supplies such as exports are zero-rated.

How it is worked out

GST to add = exclusive price x 15% GST inside an inclusive price = inclusive price x 3 / 23

Example

Adding GST to $200 gives $30.00 of GST and $230.00 in total. A $230 GST-inclusive invoice contains $30.00 of GST.

Run the numbers

Open the GST calculator

Related terms

IRD numberYour IRD number is the eight or nine digit number Inland Revenue uses to identify you for tax, KiwiSaver, student loans and Working for Families.PAYE (Pay As You Earn)PAYE is the income tax and ACC earners' levy your employer takes out of each pay and sends to Inland Revenue, based on the tax code you give them.ACC earners' levyThe ACC earners' levy funds cover for injuries outside work. For 2026/27 it is $1.75 per $100 of earnings, up to $156,641.
GST: common questions

GST is a 15% tax on most goods and services sold in New Zealand. To find the GST inside a GST-inclusive price, multiply by 3 and divide by 23.

Because 15% of the inclusive price would overstate the GST. The GST is 15 parts of every 115, and 15/115 reduces to 3/23.

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