How to Work Out GST in NZ
In NZ, working out GST starts with one question: is your price before GST or does it already include GST? Once you know that, the standard NZ GST rate of 15% does the rest.
If the price is before GST
GST = price x 0.15
Price including GST = price x 1.15
Example: $500 x 0.15 = $75 GST, so the total is $575.
If the price already includes GST
Price before GST = GST-inclusive price / 1.15
Example: $575 / 1.15 = $500 before GST.
How to calculate the GST amount in an inclusive total
GST = GST-inclusive amount x 3 / 23
Example: $575 x 3 / 23 = $75 GST.
Worked example: pricing a job in NZ
A painter in Palmerston North quotes $3,450 plus GST for a house exterior. The NZ GST is $3,450 x 0.15 = $517.50, so the quote totals $3,967.50 including GST. When the homeowner asks what the GST is, the painter points to the $517.50 line on the invoice.
Quick reference
| Need | Formula |
|---|---|
| Add 15% GST | Amount x 1.15 |
| Find 15% GST on exclusive amount | Amount x 0.15 |
| Remove GST | Inclusive amount / 1.15 |
| GST inside inclusive amount | Inclusive amount x 3 / 23 |
How to work out GST in NZ FAQs
What is the GST rate in NZ?
15%. It has been 15% in NZ since 1 October 2010.
How do I work out GST in NZ on a calculator?
For a GST-exclusive price, multiply by 0.15 to get the GST. For a GST-inclusive price, divide by 1.15 to get the exclusive amount, or multiply by 3/23 to get the GST directly.
Do I always add 15% GST in NZ?
No. Zero-rated NZ supplies such as exports are charged at 0%, and exempt supplies such as residential rent carry no GST.
Where can I check NZ GST rules?
Inland Revenue (IRD) publishes the current NZ GST rules. A link is below.
Use the NZ GST calculator
For instant results, use the NZ GST Calculator. For the registration threshold, see the NZ GST Registration Threshold Calculator.
Official source
For current NZ GST rules, check Inland Revenue.
