How GST Works for NZ Tradies
New Zealand's Goods and Services Tax (GST) is a flat 15% added to most goods and services. If your business earns more than $60,000 in a 12-month period, you must register for GST with Inland Revenue (IRD).
Key GST Rules for Tradies
- GST registration threshold: $60,000 turnover in any 12-month period
- GST rate: 15% flat (no reduced or zero rates for standard tradie work)
- Filing frequency: Monthly, two-monthly, or six-monthly depending on turnover
- Tax invoices required for any sale over $50 to a GST-registered customer
What to Include on a GST Invoice
Your tax invoice must show: - The words "tax invoice" clearly - Your name and GST registration number - Date of supply - Description of goods or services - Amount ex-GST, GST charged, and total inc-GST
Common GST Mistakes Tradies Make
- Forgetting to add GST to quotes — always quote ex-GST and show GST separately
- Claiming GST on private expenses — you can only claim GST on business purchases
- Missing the registration threshold — IRD can back-date your registration and send a bill