GST

GST (Goods and Services Tax) is New Zealand's broad-based consumption tax, charged at a flat rate of 15% on most goods and services. It is included in the shelf price of most consumer goods, so the price you see is typically the price you pay.

Businesses with annual taxable turnover over $60,000 must register for GST, charge it on their sales, and file regular GST returns with IRD. GST-registered businesses can claim back the GST they pay on business purchases (input tax credits), so effectively only the end consumer bears the cost.

Some items are exempt or zero-rated for GST purposes, including financial services, residential rent, and exported goods. If you're self-employed or run a small business approaching the $60,000 threshold, you should consider registering voluntarily — it lets you claim GST on business expenses even before you're required to register.