Understanding GST Rates: Which Products and Services Are Taxed

In New Zealand, most goods and services are taxed at a standard GST rate of 15%. Here’s what you need to know about what is and isn’t taxed.

Standard Rate: 15%

Most products and services, from groceries to electronics, include GST at 15%. This rate applies across most sectors to simplify the tax system.

Zero-Rated and Exempt Services

Certain items, like exports, are zero-rated, meaning GST is not charged but they are still reported. Some financial services are also exempt from GST, meaning GST is not charged or reported on these transactions.

Why Do Some Items Have Different GST Treatment?

Zero-rating for exports helps New Zealand businesses stay competitive abroad, and exemptions for financial services simplify tax reporting for complex transactions.