Who is the offshore-supplier rule for?

The offshore-supplier rule is for non-resident suppliers of remote services (streaming, downloads, online subscriptions, digital marketplaces) selling to NZ-resident consumers. Since 1 October 2016, those suppliers must register for NZ GST and charge GST on supplies to NZ consumers once they cross the registration threshold. The rule shifted responsibility from the consumer (who never self-accounted in practice) to the platform.

What is the reverse charge?

The reverse charge applies when a GST-registered NZ business buys services from a non-resident supplier and would not otherwise be entitled to claim a full input-tax deduction (for example, partly-exempt businesses or those using the service for non-taxable purposes). The NZ business "self-accounts" for GST as if it had also been the supplier — it includes GST in box 6 of its return and claims an input credit only to the extent of taxable use. The mechanism stops cross-border services becoming a loophole that escapes GST entirely.

Do I charge GST when I supply digital services to overseas customers?

Supplies of services to non-resident customers that are consumed outside NZ are generally zero-rated under the GST Act — you record the sale, charge GST at 0%, and remain entitled to claim input-tax credits on the related costs. There are some exceptions (services performed in NZ on goods, services connected with land in NZ). For a typical NZ SaaS or consulting business selling to overseas customers, zero-rating is the working rule.

How does low-value imported goods GST work?

Since 1 December 2019, offshore suppliers of low-value goods (each item priced at NZ$1,000 or less) must register for NZ GST and charge GST at the point of sale to NZ consumers once they cross the registration threshold. Customs duties continue to apply at the border to higher-value imports; GST on sub-$1,000 imports is collected at point of sale by the supplier rather than at the border.

GST Published 2026-06-06 · 7 min read

GST on imported services NZ — reverse charge rules

By the TaxAccountants.co.nz editorial team · Published 2026-06-06

Two different mechanisms apply when services or low-value goods cross the NZ border. For supplies to NZ consumers, the offshore-supplier rules push the GST obligation onto the platform. For GST-registered NZ businesses buying from offshore, the reverse charge applies. Both have been in place since the mid-2010s.

In one paragraph

Imported services into NZ are handled two different ways depending on the customer. B2C supplies of remote services to NZ consumers fall under the offshore-supplier rule (since 1 October 2016) — the offshore supplier registers for NZ GST and charges it at sale. B2B supplies to GST-registered NZ businesses can attract the reverse charge — the NZ business self-accounts for the GST. Low-value imported goods (each ≤ NZ$1,000) have been within the offshore-supplier rule since 1 December 2019. Source: IRD — GST.

The offshore-supplier rule (B2C remote services, since 1 Oct 2016)

From 1 October 2016, non-resident suppliers of "remote services" to NZ-resident consumers must register for NZ GST and charge GST on their supplies once they cross the GST registration threshold. The change was a response to the rise of cross-border digital services (streaming, downloads, online subscriptions) escaping GST because consumers were not self-accounting in practice. The rule applies to platforms and marketplaces as well as direct suppliers. Source: IRD — digital service providers.

What counts as a "remote service"

A "remote service" is defined in the GST Act 1985 as a service where the nature of the service is such that there is no necessary connection between the place of physical performance and the place of receipt. Streaming, downloads, e-books, online courses, software-as-a-service, hosted databases, online consulting and online advertising all sit inside that definition. Services tied to a physical NZ location — services performed on goods physically in NZ, services connected to land in NZ — fall outside the remote-services definition and are dealt with under the general GST rules. Source: GST Act 1985 (legislation.govt.nz).

The reverse charge (B2B inbound)

The reverse charge is the rule that catches services bought by GST-registered NZ businesses from non-resident suppliers — typically professional services, software licences, intra-group charges from offshore parents. The NZ business is required to "self-account" for GST: it returns output GST as if it had also been the supplier, and claims an input credit only to the extent the service is used for making taxable supplies. A fully taxable business effectively nets to zero; a partly-exempt or non-trading entity has a real GST cost. Source: IRD — GST.

B2C vs B2B — which rule applies

The offshore-supplier rule applies to supplies to NZ consumers. The reverse charge applies to supplies to GST-registered NZ businesses. The rules are designed to be mutually exclusive: the offshore supplier asks whether the customer is GST-registered, and if so, generally does not charge NZ GST (the reverse charge picks it up); if the customer is a consumer, the offshore supplier charges NZ GST at registration. Practical errors usually arise where a customer is GST-registered but does not supply the number at checkout.

Zero-rating supplies to non-residents

The flip side of the imported-services rules is the treatment of NZ supplies to overseas customers. Services supplied to non-resident customers and consumed outside NZ are generally zero-rated under the GST Act — the supply is taxable at 0%, the NZ supplier retains the right to claim input-tax credits on the related costs, and no GST appears on the invoice. The zero-rating is what makes NZ-based SaaS and consulting competitive into overseas markets. Source: GST Act 1985 (legislation.govt.nz).

Low-value imported goods (since 1 Dec 2019)

From 1 December 2019 the offshore-supplier rule was extended to low-value imported goods — each item priced at NZ$1,000 or less. Offshore suppliers crossing the GST registration threshold must register and charge NZ GST at the point of sale to NZ consumers on those items. Customs duties and border-collected GST continue to apply to imports over the NZ$1,000 threshold. The change brought sub-$1,000 imports into the GST base and removed the prior border-exemption tail. Source: IRD — GST.

Related on TaxAccountants.co.nz

NZ GST rate — the 15% standard rate behind every calculation here.
GST registration threshold — the $60,000 turnover trigger.
GST calculator — add or remove GST at the standard rate.
Sole trader vs company NZ — both structures hit the same GST rules.

Cross-border SaaS, marketplace or import operation?

Offshore-supplier registration, reverse-charge mechanics and zero-rating interact in ways that depend on customer type and supply chain. We refer every quote request to Lynch & Associates, our Auckland partner firm of CAANZ-member accountants and IRD-registered tax agents, who will reply within one business day.

Get a quote — free for users

Sources

Editorial note: Commencement dates above are the dates the offshore-supplier rule applied to remote services (1 Oct 2016) and to low-value goods (1 Dec 2019). The registration threshold itself sits on the GST registration page. Verified 2026-06-06.

Disclosure: TaxAccountants.co.nz is an introduction service. Quote requests are referred to Lynch & Associates Chartered Accountants.