New Zealand GST is simpler than most sales taxes: one standard rate of 15 percent, one registration threshold, and one famous shortcut, the 3/23 rule, for finding the GST inside a price. This guide gives you the formulas, a full worked invoice and GST return example, and a clear test for whether you must register, or should register voluntarily.
Search intent: you want the correct New Zealand GST rate, a reliable way to add or extract GST from a price, and a straight answer on when a freelancer must register with Inland Revenue.
Rates last reviewed: October 2026. Figures are checked against Inland Revenue’s charging GST guidance, which sets out the 15 percent rate and the 3/23 method, and Inland Revenue’s online trading guidance on the registration threshold.
What is the GST rate in New Zealand in 2026?
New Zealand’s standard GST rate is 15 percent in 2026, charged on most goods and services supplied by a GST-registered person. A 0 percent zero rate applies to exports and a few named supplies, and some supplies are exempt. The 15 percent rate has applied since 1 October 2010, and there is no reduced rate for essentials.
That broad base is the first thing overseas freelancers get wrong. Unlike Australia, New Zealand does not make basic food GST-free. Our Australia GST guide explains the GST-free categories and the registration threshold on the other side of the Tasman. Almost all food carries 15 percent GST when sold by a registered supplier. Your rate follows what you supply, not who you are.
| Rate | Treatment | Typical examples |
|---|---|---|
| 15% | Standard | Freelance and professional services, most retail goods, food, software, commercial rent |
| 0% | Zero-rated | Exported goods, services supplied to a customer outside New Zealand where the conditions are met, a business sold as a going concern, land sold between two GST-registered parties |
| No GST | Exempt | Most financial services, long-term residential rent, donated goods sold by non-profit bodies, wages and salaries |
Watch out: Zero-rated and exempt are not the same thing. A zero-rated supply is still a taxable supply at 0 percent, so you show it in your GST return and keep the right to claim GST on related costs. An exempt supply sits outside the return, and you cannot claim GST on costs linked to it.
Compare the structure with our GST for freelancers in India guide, which has multiple slabs, and our UK VAT rates guide, which has reduced and zero rates for essentials. New Zealand’s single rate makes the maths easier, but it makes the registration decision more important, because there is no middle rate to soften a price rise.
How do you calculate GST in New Zealand?
To add GST in New Zealand, multiply the GST-exclusive price by 0.15 to get the GST amount, then add it to the original price, or multiply by 1.15 in one step. A fee of 200 New Zealand dollars before GST becomes 230 dollars including GST, made up of 200 dollars plus 30 dollars of GST.
Three formulas cover every quote, invoice and receipt:
- GST amount = GST-exclusive price x 0.15. Example: 200 x 0.15 = 30.
- Price including GST = GST-exclusive price x 1.15. Example: 200 x 1.15 = 230.
- GST-exclusive price = price including GST / 1.15. Example: 230 / 1.15 = 200.
Always state which basis a price uses. Business clients in New Zealand commonly quote plus GST, meaning the GST-exclusive figure comes first and GST is added on the invoice. Consumer prices are normally shown including GST. Most disputes start when one side heard a figure as inclusive and the other meant it as exclusive.
Run any of these in seconds with LancerBill’s GST calculator, which adds or removes GST at a custom rate, so you can set 15 percent and switch between add and remove modes. When you quote before work starts, build the quote net first and add GST as its own line. Our quote generator helps you present that split cleanly, so a client never mistakes a plus-GST quote for a final inclusive price.
How do you extract GST from a GST-inclusive price?
To extract the GST inside a GST-inclusive New Zealand price, multiply the total by 3 and divide by 23. That fraction is 15 divided by 115, the GST share of a price that already includes GST. A total of 230 dollars multiplied by 3/23 gives 30 dollars of GST.
Inland Revenue itself uses this method. Its charging GST guidance gives the example of a 100 dollar inclusive price, where the GST is 3/23 of 100 dollars, or 13.04 dollars. Note what that example proves: GST is not 15 percent of the inclusive price. Fifteen percent of 100 dollars is 15 dollars, which overstates the GST by 1.96 dollars on one small amount.
Here is the extraction table competitors rarely show in full. Use it as a mental check on any receipt, supplier invoice or platform payout:
| GST-inclusive total | GST inside it (x 3/23) | GST-exclusive amount | Wrong answer if you take 15 percent of the total |
|---|---|---|---|
| NZ$115 | NZ$15.00 | NZ$100.00 | NZ$17.25 |
| NZ$230 | NZ$30.00 | NZ$200.00 | NZ$34.50 |
| NZ$575 | NZ$75.00 | NZ$500.00 | NZ$86.25 |
| NZ$1,150 | NZ$150.00 | NZ$1,000.00 | NZ$172.50 |
| NZ$2,300 | NZ$300.00 | NZ$2,000.00 | NZ$345.00 |
Check one row by hand: 575 x 3 = 1,725, and 1,725 / 23 = 75. Then 575 – 75 = 500 exclusive. The wrong method in the last column overstates GST on every row, and if you claim that inflated figure as input GST on a purchase, you are claiming tax you never paid. LancerBill’s GST calculator in remove mode does the 3/23 step for you, which is the safer habit for expense claims.
Tip: Memorise 3/23, not 15 percent, for inclusive prices.
Worked example: a freelance invoice and GST return, step by step
Assumptions: New Zealand, October 2026, a GST-registered Wellington brand designer filing two-monthly on the invoice basis. In one period she invoices three jobs and buys equipment and software. All figures are in New Zealand dollars.
| Line | Net (excl. GST) | Rate | GST | Including GST |
|---|---|---|---|---|
| Brand design project for a Wellington client | NZ$3,000 | 15% | NZ$450 | NZ$3,450 |
| Printed brand booklets resold to the client | NZ$400 | 15% | NZ$60 | NZ$460 |
| Design services for a client in Australia, supplied remotely | NZ$1,000 | 0% zero-rated | NZ$0 | NZ$1,000 |
| Totals | NZ$4,400 | NZ$510 | NZ$4,910 |
The invoice arithmetic, line by line:
- Design project: 3,000 x 0.15 = 450. Including GST: 3,000 + 450 = 3,450.
- Booklets: 400 x 0.15 = 60. Including GST: 400 + 60 = 460.
- Exported services: 1,000 x 0 = 0. Total stays 1,000, and the line still appears in the return as a zero-rated supply.
- Invoice totals: net 3,000 + 400 + 1,000 = 4,400. GST 450 + 60 + 0 = 510. Including GST: 4,400 + 510 = 4,910.
Now the return. Her GST on sales, called output tax, is 510 dollars. In the same period she paid GST on business costs, called input tax:
- Laptop bought for 1,150 dollars including GST: 1,150 x 3/23 = 150 dollars of claimable GST.
- Design software bought for 230 dollars including GST: 230 x 3/23 = 30 dollars of claimable GST.
- Total input tax: 150 + 30 = 180 dollars.
- GST to pay Inland Revenue: 510 – 180 = 330 dollars.
Two lessons sit inside this example. First, you never hand over all the GST you collected: the 510 dollars is reduced by the GST in your own business costs. Second, the zero-rated export line still earns its place, because it is reported in the return and supports the input claims on costs used to produce it. Create invoices in this format with our invoice generator, showing your GST number, the words tax invoice, each line’s rate, and the GST total separately.
When must a New Zealand freelancer register for GST?
You must register for GST in New Zealand when your taxable turnover was 60,000 New Zealand dollars or more in the last 12 months, or is expected to reach that level in the next 12 months. The test is a rolling 12 months, not the tax year, and Inland Revenue states the same threshold for online trading and marketplace sellers.
Turnover here means your taxable supplies, before GST, and it excludes salary and wages. If you freelance alongside a job, only the self-employed income counts toward the threshold. Watch the forward-looking half of the test closely: signing one large contract that will push you past the threshold can trigger registration before the money arrives, not after.
Once registered, you choose a filing frequency: monthly, two-monthly or six-monthly. Most freelancers file two-monthly, and six-monthly filing is aimed at smaller businesses. Returns and payment are generally due on the 28th of the month after the period ends, with later dates for the periods ending in November and March. You also choose an accounting basis. The invoice basis accounts for GST when you invoice, the payments basis when money moves, and payments basis eligibility is limited to smaller turnovers. For a freelancer with slow-paying clients, the payments basis can protect cash flow, because you do not pay GST on an invoice the client has not yet paid.
Watch out: Register late and Inland Revenue can backdate your registration. You would then owe GST on sales you made without charging it, so the tax comes out of money you already treated as income. Track turnover monthly once you pass about 5,000 dollars a month, the run rate that reaches the threshold in a year.
Should you register voluntarily below the threshold?
You may register voluntarily below the threshold if you carry on a taxable activity, and many freelancers do. Registration lets you claim GST on your costs and can make you look established to business clients, but you must charge 15 percent on your prices, file returns, and keep records for at least seven years.
Use this decision framework, which is the part most rate guides skip:
| Your situation | Voluntary registration tends to | Why |
|---|---|---|
| Clients are mainly GST-registered businesses | Help | They claim your GST back, so they compare you on the exclusive price and feel no price rise |
| Clients are mainly consumers | Hurt | They cannot claim GST back, so adding 15 percent makes you dearer, or you absorb it and earn less |
| You buy equipment, software or materials with a lot of GST in the price | Help | You recover that GST as input tax, as in the worked example above |
| Most of your work is exported or zero-rated | Help strongly | You charge 0 percent out but still claim GST back on costs, so returns often produce refunds |
| Your costs are mostly your own time | Hurt | There is little input GST to recover, so you gain admin and lose pricing room |
| You expect to cross the threshold within a year | Help | Registering early on your own timetable beats a backdated registration later |
Scenario walkthrough: a Christchurch copywriter turns over 42,000 dollars a year writing for GST-registered agencies, and pays about 600 dollars a year in GST on software, a computer and subcontracted design. Registering voluntarily adds nothing to what agencies effectively pay, recovers that 600 dollars, and removes the risk of drifting over the threshold unnoticed as her rates rise. With private clients and almost no costs, the same registration would mostly be paperwork.
Rule of thumb: register voluntarily when your clients can claim GST back or your costs carry GST you want back. Stay out while you sell mainly to consumers and your costs are mostly your own time.
For a wider invoicing routine once you register, see our step-by-step guide to writing an invoice and our Netherlands VAT guide if you also bill European clients.
Key takeaways
- New Zealand GST is a single standard rate of 15 percent, with 0 percent zero-rating for exports and a short exempt list. There is no reduced rate for food or essentials.
- Add GST by multiplying the exclusive price by 1.15. Extract GST from an inclusive price with the 3/23 rule, never by taking 15 percent of the total.
- Registration is compulsory at 60,000 New Zealand dollars of taxable turnover in any rolling 12 months, past or expected.
- On your return you pay output GST minus input GST on your costs, so the GST you collect is not the GST you hand over.
- Voluntary registration suits freelancers with GST-registered clients, GST-heavy costs, or export income. It suits consumer-facing freelancers with few costs far less.
- File monthly, two-monthly or six-monthly, keep records for at least seven years, and track turnover monthly near the threshold to avoid backdated registration.
Frequently asked questions
What is the GST rate in New Zealand in 2026?
The standard GST rate in New Zealand is 15 percent, and it has applied since 1 October 2010. There is no reduced rate. Exports and some other named supplies are zero-rated at 0 percent, and a short list including most financial services and long-term residential rent is exempt, per Inland Revenue guidance.
How do I add 15 percent GST to a price?
Multiply the GST-exclusive price by 1.15. A fee of 500 New Zealand dollars becomes 575 dollars including GST, made up of 500 dollars plus 75 dollars of GST. In two steps, multiply by 0.15 to get the GST amount, then add it to the original price.
How do I work out the GST in a GST-inclusive price?
Multiply the inclusive total by 3 and divide by 23. That is the 3/23 rule Inland Revenue uses: a total of 115 dollars contains 15 dollars of GST, and a total of 100 dollars contains 13.04 dollars. Do not take 15 percent of the inclusive total, which overstates the GST.
When must a New Zealand freelancer register for GST?
You must register when your taxable turnover was 60,000 New Zealand dollars or more in the last 12 months, or is expected to reach that level in the next 12 months. Salary and wages do not count toward the threshold. Registration below the threshold is voluntary if you carry on a taxable activity.
What is zero-rated and what is exempt in New Zealand?
Zero-rated supplies include exported goods, qualifying services supplied to customers outside New Zealand, a business sold as a going concern, and land sold between two GST-registered parties. Exempt supplies include most financial services, long-term residential rent and donated goods sold by non-profit bodies. Zero-rated supplies go in your return and keep input claims; exempt supplies do not.
How often do I file a GST return in New Zealand?
GST-registered businesses file monthly, two-monthly or six-monthly, depending on their choice and eligibility. Most freelancers file two-monthly. Returns and payment are generally due on the 28th of the month after the period ends, with later due dates for the periods ending in November and March.
This guide is for general information only and is not financial, tax or legal advice.