How is GST calculated in NZ?
In New Zealand, Goods and Services Tax (GST) is a consumption tax
that is applied to most goods and services.
Currently, the rate of GST is 15% and this is typically added to the
base price of goods or services.
Example: An electrician who is GST registered provides their service
at $100 per hour, they will typically add a GST of 15% on this
service per hour i.e. $15 per hour, so the total cost for this
service becomes $115 per hour.
Similarly, GST is also applied to the sale of products.
So, to calculate the GST amount, we multiple the base amount by 0.15
i.e. 15%. This GST amount is then added to the base price and the
final amount including GST is calculated.