Docs · New Zealand

GST on your sales

What 15% actually applies to, how an inclusive price splits, when you have to register, and the three things this software deliberately does not do for you.

The numbers, first

GST rate
15%Unchanged since October 2010
Registration threshold
NZ$60,000Turnover in any 12‑month period, looking back or forward
Keep records for
7 yearsIncluding what supports a zero‑rated sale

What an inclusive price is made of

New Zealand buyers expect the price on the page to be the price they pay. GoCushy displays GST-inclusive by default, so nothing moves at the last step. Underneath, every inclusive price is two numbers.

A GST-inclusive price of NZ$99 splits into NZ$86.09 for the seller and NZ$12.91 of GST One box showing the inclusive price the buyer pays splits into two boxes: the amount that belongs to the seller, and the GST component collected for Inland Revenue. Buyer pays NZ$99 Yours NZ$86.09 Held for IRD NZ$12.91 RETURN
The GST portion was never your money. It arrives in your account, sits there until your return, and leaves again — which is why treating it as revenue is the most common cash-flow mistake a newly registered New Zealand business makes.

The arithmetic runs on the inclusive figure, not the other way round: divide by 1.15 to get the exclusive amount, and the difference is the GST. NZ$99 ÷ 1.15 = NZ$86.09, leaving NZ$12.91. Multiplying NZ$86 by 1.15 gives NZ$98.90, which is why rounding the exclusive figure to whole dollars quietly breaks the reconciliation.

Do you have to register?

You must register if your turnover was at least NZ$60,000 in the last twelve months, or you expect it will be at least NZ$60,000 in the next twelve months. It is a rolling test, not a financial-year one, and the forward-looking half catches people out — a single large contract can put you over before the invoices are issued.

If you are not registered, do not turn GST on. Charging GST you are not registered to collect is a worse problem than not charging it, and it is visible on every invoice you have issued.

If most or all of your sales are to overseas buyers, whether those count toward the threshold is a question worth putting to your accountant directly rather than assuming either way. GoCushy does not make that call and does not display an opinion about it.

Turning it on

  1. Dashboard → Settings → Business & support
  2. Set your country to New Zealand
  3. Enter your GST number — it is checked for a valid IRD format, not just length
  4. Turn on tax collection

From that point every New Zealand sale carries GST, and every invoice carries your GST number. Your GST number is your IRD number; there is no separate one to find.

What GST applies to

SaleTreatment
Digital product to a New Zealand buyer15%
Service to a New Zealand buyer15%
Either, to a buyer outside New ZealandGenerally zero-rated — see selling overseas

The distinction is the buyer’s location, not yours. That is why GoCushy captures and keeps the buyer’s country on every order instead of treating it as an analytics field that ages out.

Inclusive or exclusive display

GoCushy displays GST-inclusive by default. If you sell business-to-business and prefer to quote excluding GST, you can display it that way. Either is lawful.

What is not lawful is quoting a price excluding GST without making that clear to a consumer — that is a Fair Trading Act problem rather than a tax one, and it is the kind of thing the Commerce Commission acts on.

Three things this does not do

Any checkout that claims to do the first of those is describing something other than what happens.

General information about how GoCushy behaves, correct as at 19 August 2026. It is not tax advice about your circumstances — your accountant knows those and we do not.