What is the New Zealand GST rate and which goods and services are GST-exempt?

New Zealand's GST rate is 15%, which applies to most goods and services sold in the country. Unlike some other countries, New Zealand does not have a reduced or lower GST rate for specific categories.

GST-exempt supplies (no GST charged, no input tax credits claimed):

• Residential rent (renting a home to a tenant)
• Financial services (bank fees, loan interest, life insurance premiums)
• Donated goods and services sold by non-profit organisations
• Penalty interest and late payment fees

Zero-rated supplies (0% GST, but input tax credits can be claimed):

• Exported goods and services
• Sale of a going concern (selling a business to a GST-registered buyer)
• Land transactions between GST-registered parties (in certain circumstances)
• International transport services
• Certain financial services provided to non-residents

Key distinction: The difference between exempt and zero-rated supplies is important. For exempt supplies, you cannot claim back the GST you paid on related expenses. For zero-rated supplies, you can claim input tax credits even though you charge 0% GST.

What GST applies to:

Most everyday goods and services are taxable at 15%, including food, clothing, electronics, professional services, and restaurant meals. New Zealand does not exempt fresh food, children's clothing, or other categories that some countries treat differently.

If you are GST-registered, you must charge 15% on all taxable supplies and can claim back the GST on your business expenses.