Managing taxes and compliance is rarely why entrepreneurs start an e-commerce business, but failing to configure your tax and invoicing settings correctly from day one creates catastrophic accounting nightmares at tax time. In New Zealand, Inland Revenue (IRD) enforces strict rules regarding the 15% Goods and Services Tax (GST) and buyer tax invoice requirements. Here is everything Kiwi online store owners must know.
Under New Zealand tax law, you must register for GST with Inland Revenue if:
If your turnover is below $60,000, GST registration is optional. However, voluntary registration allows you to claim back the 15% GST paid on setup costs, inventory purchases, web development fees, and commercial shipping expenses.
One of the most common mistakes overseas templates make is displaying net prices and adding GST at checkout. In New Zealand, Section 9 of the Fair Trading Act 1986 strictly mandates that prices displayed to consumers must be inclusive of 15% GST unless clearly marked otherwise for trade/B2B buyers.
Ensure your store settings explicitly calculate tax as inclusive, preventing confusing price jumps at checkout that alienate Kiwi customers.
When selling to New Zealand customers, Inland Revenue requires specific 'Taxable Supply Information' on all receipts and invoices:
| Order Value (NZD) | Required Invoice Information |
|---|---|
| Under $50 | Seller name, date of supply, description of goods, total amount paid. |
| $50 to $1,000 | Seller legal name, GST number, date, description of goods, total price indicating GST is included. |
| Over $1,000 | All above plus: Buyer's legal name, physical address, and detailed itemization. |
Ensure your automated order confirmation emails include your legal business name and GST number formatted as an official tax invoice.
Manually copying order details from Shopify or WooCommerce into your accounting software wastes valuable time and introduces human error:
Infynt engineers e-commerce websites with rock-solid tax compliance from day one. We configure inclusive 15% GST tax matrixes, custom PDF invoice generators delivering full IRD compliance, and automated webhooks that sync cleanly with Xero, allowing you to operate with complete financial peace of mind.
We engineer custom, blazing-fast websites and Shopify stores for Palmerston North and New Zealand businesses. Transparent fixed pricing, 40/30/30 milestone payments, and 100% code ownership.
No. Goods exported from New Zealand to an overseas destination are classified as 'zero-rated' for GST purposes (0% GST), provided you maintain export shipping documentation.
Inland Revenue can back-date your GST registration to the date you crossed the threshold and demand 15% of your gross sales, plus penalties and interest, even if you never collected GST from customers.
Yes. Overseas software providers selling remote services to New Zealand residents must charge 15% NZ GST unless you provide a valid New Zealand GST registration number in your billing profile.