NZ zero-rated GST supplies — exports, going concerns, land

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

Zero-rating is not the same as being exempt. A zero-rated supply is still inside the GST system — GST is charged at 0%, and the supplier keeps the right to claim input GST on the costs of making that supply. The categories below are set by the GST Act 1985.

Zero-rated vs exempt — the core distinction

A zero-rated supply is a taxable supply charged at 0% GST. The supplier records the sale in box 5 of the return, applies 0% GST, and remains entitled to claim input GST on the related costs in box 13. An exempt supply, by contrast, is outside the GST net — no GST is charged on the sale, and the supplier cannot claim input GST on costs used to make it. Zero-rating preserves the supplier’s margin; exemption embeds GST as a cost. Source: GST Act 1985 (legislation.govt.nz).

Exports of goods

Goods that physically leave NZ within 28 days of the time of supply are zero-rated under the GST Act. The supplier retains export documentation — shipping invoice, bill of lading, customs export entry — and records the sale at 0%. If the goods do not in fact leave NZ inside the 28-day window, the supply is reclassified as standard-rated and the 15% GST liability arises. Source: IRD — GST.

Exported services

Services supplied to non-resident customers and consumed outside NZ at the time the service is performed are generally zero-rated. This is the rule that makes NZ-based consulting, design, software and other services competitive into overseas markets — the supplier charges 0% GST and still claims input GST on the costs of delivery. Carve-outs apply where the service is performed on goods physically in NZ or is connected with NZ land. Source: GST Act 1985 (legislation.govt.nz).

Going-concern sales

The supply of a going concern can be zero-rated when both parties are GST-registered, both agree in writing (typically in the sale-and-purchase agreement) that the supply is of a going concern, and the supply is of a taxable activity capable of being carried on by the recipient as a going concern. Common applications include sales of trading businesses, rent rolls, and commercial property tenanted to GST-registered tenants. Without the written agreement the sale falls back to 15%. Source: IRD — GST.

Land between GST-registered parties (mandatory CZR since 1 April 2011)

Since 1 April 2011, sales of land between two GST-registered parties — where the recipient intends to use the land for making taxable supplies and not as a principal place of residence — must be zero-rated under the compulsory zero-rating (CZR) rules. The change was made because the prior structure (vendor charges 15%, purchaser claims it back) had been exploited by purchasers liquidating before remitting the GST. Compulsory zero-rating removes the cash movement and the phoenix risk. Source: GST Act 1985 (legislation.govt.nz).

Fine metals

The first supply of fine metals (gold, silver, platinum of investment grade and purity) by the refiner to a dealer or investor is zero-rated under the GST Act. Subsequent supplies of those same metals — for example a dealer onselling to another investor — are exempt rather than zero-rated. The category is narrow and rarely engaged outside the bullion trade. Source: GST Act 1985 (legislation.govt.nz).

Related on TaxAccountants.co.nz

• NZ GST rate — the 15% standard rate every non-zero-rated supply attracts.
• GST on imported services — the inbound mirror of zero-rated exported services.
• GST registration threshold — the $60,000 turnover trigger.
• GST calculator — add or remove GST at the standard rate.