When did 15% take effect?

GST rose from 12.5% to 15% on 1 October 2010 as part of the 2010 Budget tax-switch package, which also lowered personal income-tax rates. Before October 2010 the rate was 12.5% (set on 1 July 1989); the original GST rate at introduction on 1 October 1986 was 10%. Source: IRD.

What is zero-rated vs exempt?

Zero-rated supplies are subject to GST at 0% — you charge nothing on the sale but you can still claim input GST on your costs. Examples include exports of goods, certain exported services, and the sale of a going concern. Exempt supplies are outside the GST net entirely — you charge no GST and you cannot claim input GST on related costs. Examples include residential rent, financial services (interest, life insurance, share trading), and donated goods sold by non-profits.

Do I charge GST on overseas sales?

Goods physically exported from NZ are zero-rated (0% GST) if the supporting export documentation meets IRD’s rules. Services supplied to non-residents who are outside NZ at the time of the service can also be zero-rated. Selling digital goods or services into NZ from offshore triggers the offshore-supplier rules — non-resident sellers above NZ$60,000 of NZ supplies must register and charge 15%.

How is GST collected on imported services?

Since 1 October 2016 the offshore-supplier rules apply 15% GST to remote services (streaming, software, digital downloads, online consulting) sold by non-resident suppliers to NZ-resident consumers. The non-resident supplier registers with IRD and charges GST at the point of sale. For B2B transactions a reverse-charge mechanism applies where the GST-registered NZ recipient self-accounts for the GST.

GST Published 2026-06-06 · 6 min read

NZ GST rate — 15% since 1 October 2010

What 15% GST applies to, the difference between zero-rated and exempt supplies, how exports are treated, and how GST is collected on remote services bought from overseas. Sourced from IRD.

In one paragraph

NZ Goods and Services Tax is a flat 15% applied to most supplies of goods and services made in NZ by GST-registered persons. The rate has been 15% since 1 October 2010 (up from 12.5%, which had applied since 1 July 1989). Zero-rated supplies (exports, going-concern sales) carry GST at 0%; exempt supplies (residential rent, financial services) sit outside the GST net. Source: IRD — GST.

The 15% standard rate

GST is added to the price of most goods and services sold by a GST-registered supplier in NZ. To remove GST from a GST-inclusive price, divide by 1.15 (the GST component is 3/23 of the inclusive price). To add GST to a GST-exclusive price, multiply by 1.15. Use our GST calculator to do this without the arithmetic. Source: IRD — GST.

History of the rate

GST was introduced on 1 October 1986 at 10%. It rose to 12.5% on 1 July 1989, and to the current 15% on 1 October 2010. The 2010 increase was part of the Budget 2010 tax-switch package — GST up, personal income-tax rates down, in an attempt to shift the tax base toward consumption. The rate has been stable since.

Zero-rated supplies — 0% GST

Zero-rated supplies are taxable, but at a 0% rate. The supplier charges no GST on the sale but can still claim back the GST paid on related costs (input credits). The main zero-rated categories:

Exports of goods — physically shipped out of NZ, with export documentation.
Exported services — supplied to a non-resident who is outside NZ when the service is performed.
Sale of a going concern — sale of a business as a working unit between two GST-registered parties, where both agree in writing.
Land transactions between GST-registered parties — compulsory zero-rating since 1 April 2011, to remove a phoenix-fraud risk.
Fine metals — gold, silver, platinum at investment grade.

Exempt supplies — outside the GST net

Exempt supplies are not taxable. No GST is charged, and the supplier cannot claim back GST on related costs. The main exempt categories:

Residential rent — landlords letting residential property do not charge GST and cannot claim GST on related expenses.
Financial services — interest, life insurance premiums, share trading, currency exchange.
Sales of donated goods by non-profit bodies.
Penalty interest on overdue accounts.

A common point of confusion: commercial rent is subject to GST (15%); only residential rent is exempt.

Reverse-charge and offshore suppliers

Two related rules ensure imported services pay NZ GST. The reverse-charge mechanism applies when a GST-registered NZ business buys services from offshore and uses them for non-taxable purposes — the NZ buyer self-accounts for GST as if they had supplied it. The offshore-supplier rules (effective 1 October 2016 for remote services; extended 1 December 2019 to low-value imported goods) require non-resident suppliers above NZ$60,000 of NZ supplies to register, charge 15% to NZ consumers, and remit to IRD. Source: IRD — GST.

Related on TaxAccountants.co.nz

GST add/remove calculator — do the 1.15 maths in one click.
GST registration threshold — $60,000 in 12 months.
NZ income tax rates 2026 — the personal income-tax brackets that paired with the 2010 GST rise.
Provisional tax 2026 — instalments under standard, estimation and AIM.

GST return overdue or mis-coded?

Mixed-use supplies, zero-rating documentation, and offshore-services GST trip up most small businesses at some point. 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

IRD — GST

Editorial note: The GST rate is set in the Goods and Services Tax Act 1985 and changes only by legislation. Verified 2026-06-06.

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