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GST Calculator (New Zealand)

GST Calculator (Add Sales Tax)

Reverse GST Calculator (Subtract Sales Tax)

What is the GST?

The GST, or Goods and Services Tax, is a value-added tax on purchases.

As a value-added tax, only the final consumer pays the GST – purchases by business at other stages of production do not pay GST (they are charged GST, however, those charges act as a credit against the GST they charge).

GST is not charged on exports, but it is charged on some imports.

Rates

New Zealand’s current GST rate is 15%.

Historic rate changes have been: 1986 (introduction of GST) – 10%. Increase in 1989 to 12.5% and an increase in 2010  t0 15%.

What goods and services are not charged GST?

Inland Revenue keeps a record of goods and services not charged GST.

Popular (but not all) categories are:

  • Donations
  • Financial Services
  • Renting a Residential Dwelling
  • Fine Metals
  • Exports

How to calculate GST (formula)

GST is calculated by multiplying the GST rate (15% in New Zealand) by the total pre-tax cost. The cost of GST is then added to the purchase.

Example: $75 of goods x 15% GST = $11.25 GST

$75 of goods + $11.25 GST = $86.25 total

How to calculate reverse GST (formula)

To find the GST from a total, divide the total amount by the GST rate divided by 100 and plus 1.

Example: $70 total (with GST) at 15% GST rate

(15% / 100) + 1 = 0.15 + 1 = 1.15

$70 / 1.15 = $60.87 cost before GST

GST refunds (tourism & business)

Unlike other countries, there is no tourism refund for GST. The tax applies to all purchases within New Zealand.

Businesses are eligible to reclaim their costs that include GST. For more information and how to register see the New Zealand Business.govt.nz page on GST or the Inland Revenue page on GST.

Sources and more resources