GST Zero-Rated Supply Checker NZ

This checker helps you work out whether a specific supply qualifies for New Zealand's 0% GST rate rather than the standard 15%, a distinction that can be worth tens of thousands on a property or business sale if you get it wrong. Start by selecting the type of supply: export of physical goods, services to an overseas customer, sale of land, sale of a business as a going concern, financial services to a GST-registered business, sale of an aircraft or ship, duty-free goods, or a standard domestic sale. Depending on your choice, you'll answer a short set of follow-up questions, such as whether both parties are GST-registered, whether the goods left NZ within the required timeframe, or whether the land will become the buyer's home. Based on your answers, the checker returns a result banner showing zero-rated, standard 15% GST, or exempt, an explanation of why that treatment applies under sections 11 and 11A of the GST Act 1985, and a documentation checklist of the records you need to keep to support it. Below the tool you'll find a plain-English guide to the difference between zero-rated and exempt supplies, and to each qualifying category in more depth. This covers the general rules rather than advice for your specific transaction, so confirm unusual or high-value cases with your accountant or Inland Revenue before you file.

Updated  Tests sections 11 (goods) and 11A (services) of the GST Act 1985, including compulsory zero-rating on land.
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What kind of supply are you checking?


Zero-rated vs exempt - the critical difference

Zero-rated supplies attract GST at 0%, but you can still claim input tax credits on related expenses. Exempt supplies (financial services to consumers, residential rent) attract no GST at all and you cannot claim input tax credits on related costs. The distinction matters: a business making zero-rated exports gets full GST relief through input credits, while one making exempt supplies effectively bears the GST as a cost.

Common zero-rated categories

Exports (section 11)

Goods physically exported from NZ within 28 days are zero-rated. The exporter keeps shipping documents and customs records. Services performed for non-residents who are outside NZ at the time of supply are generally zero-rated under section 11A.

Land between GST-registered parties

Compulsory zero-rating applies to most land transactions between two GST-registered parties where the buyer intends taxable use and the land won't be a residence for the buyer or an associate. The sale and purchase agreement must specify the GST treatment.

Going concern sales

Sale of a business as a going concern is zero-rated if both parties are GST-registered, both agree in writing, and the buyer continues the same taxable activity. The going concern relief saves the buyer from financing GST on the purchase price up-front.

B2B financial services

Financial services supplied to a GST-registered recipient who makes 75% or more taxable supplies can be zero-rated rather than exempt. This rule (introduced 2014) lets the supplier claim input credits and gives the registered recipient a clean GST position.

Sources

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Frequently asked questions

What is a zero-rated supply for NZ GST?

A zero-rated supply has GST applied at 0% rather than 15%. The supplier doesn't collect GST from the customer but CAN still claim input tax credits on related expenses. This is different from an exempt supply (no GST collected and no input credits). Common zero-rated supplies include exports, land transactions between two GST-registered parties, and the sale of a business as a going concern.

When is a sale of land zero-rated for GST?

Compulsory zero-rating applies to a sale of land if both parties are GST-registered, the buyer intends to use the land for taxable supplies, and the land is not intended to be the buyer's (or an associate's) principal place of residence. The transaction must include some interest in land. The sale and purchase agreement should specify whether the supply is zero-rated, and the seller should not charge GST on a zero-rated transaction.

What is a 'going concern' for GST?

A going concern is the sale of a business as a continuing operation, with all assets and operations transferring such that the buyer can continue running the business. Both parties must be GST-registered, both must agree in writing that the supply is the supply of a going concern, and the supply must be the SAME taxable activity that the seller carried on. Asset-only sales are not going concerns.

Are exports always zero-rated?

Generally yes, but with conditions. Goods physically exported from NZ within 28 days (or longer with IRD approval) are zero-rated. Services supplied to a non-resident outside NZ are typically zero-rated. There are exceptions for services performed on goods inside NZ for a non-resident (zero-rated only if the goods are subsequently exported). Documentation requirements are strict: keep export shipping documents and customs records.