NZ GST Calculator – FAQs

General Questions

What is GST in New Zealand?
GST (Goods and Services Tax) is a value-added tax of 15% that applies to most goods and services in New Zealand. It’s included in the price of most items you purchase.

What is this GST calculator for?
This calculator helps you quickly add or remove 15% GST from any amount. It’s useful for businesses, freelancers, and anyone who needs to calculate GST for invoices, expenses, or pricing.

When would I need to add GST?
You need to add GST when:

• Creating invoices for goods or services

• Pricing products for sale

• Calculating total costs including tax

• Preparing quotes for clients

When would I need to subtract GST?
You need to subtract GST when:

• Analyzing expenses to find the pre-tax amount

• Claiming GST back on business purchases

• Understanding the base cost of an item

• Preparing financial reports

Calculation Questions

How is GST calculated when adding to an amount?
When adding GST, multiply the amount by 0.15 (15%) to get the GST amount, then add it to the original amount. Alternatively, multiply by 1.15 to get the total directly.

How is GST calculated when subtracting from an amount?
When subtracting GST, divide the amount by 1.15 to get the pre-tax amount. The difference between the original amount and the pre-tax amount is the GST component.

Why can’t I just subtract 15% to remove GST?
Because the 15% is calculated on the smaller pre-tax amount, not the larger total amount. For example, 15% of $86.96 is $13.04, which totals $100. If you subtract 15% from $100, you get $85, which is incorrect.

What’s the formula for subtracting GST?
The formula is: Pre-tax amount = Total amount ÷ 1.15

NZ-Specific Questions

Is GST always 15% in New Zealand?
Yes, the GST rate in New Zealand has been 15% since October 1, 2010. There are no plans to change this rate.

Are there any exceptions to GST in NZ?
Yes, some items are GST-free, including:

• Financial services

• Residential rent

• Donations to charities

• Fine metals (gold, silver)

• Exported goods

Do I need to register for GST?
You must register for GST if your annual turnover exceeds $60,000. You can voluntarily register if your turnover is below this threshold.

How often do I need to file GST returns?
This depends on your chosen filing frequency:

• Monthly (for larger businesses)

• Two-monthly (most common)

• Six-monthly (if turnover under $500,000)

Business Questions

Can I claim GST back on business purchases?
Yes, if you’re GST-registered, you can claim back the GST you pay on business-related expenses and purchases.

What records do I need to keep for GST?
You should keep:

• All tax invoices

• Receipts for business expenses

• Sales records

• Bank statements

• GST calculation worksheets

What’s the difference between GST-inclusive and GST-exclusive?

• GST-inclusive: The price includes GST (what customers pay)

• GST-exclusive: The price before GST is added (your base price)

How do I show GST on invoices?
Your invoices should clearly show:

• GST-exclusive subtotal

• GST amount (15%)

• GST-inclusive total

• Your GST registration number

Technical Questions

Why are the amounts sometimes rounded?
GST calculations can result in fractions of cents. In practice, amounts are rounded to the nearest cent for actual transactions, though our calculator shows precise amounts.

Can I use this calculator for multiple items?
Yes, you can calculate GST for individual amounts and then sum them, or calculate the total first and then apply GST to the sum.

Is this calculator suitable for business use?
Yes, the calculations are accurate and based on standard GST formulas used in New Zealand. However, always double-check important financial calculations.

What if I need to calculate GST for different periods?
The calculator works for any amount regardless of time period. For ongoing GST management, you may want to use accounting software.

Need More Help?
For specific GST advice or complex situations, we recommend consulting with a qualified accountant or visiting the New Zealand Inland Revenue website.

Note: This calculator is for educational purposes. While we strive for accuracy, always verify important calculations with professional advice or official IRD guidelines.