What goods and services are GST exempt?

There are exceptions to every rule. With GST, there are things called ‘zero-rated supplies’, which aren’t subject to GST. These include some exported and imported services, certain financial services, duty-free goods, exported goods, exported boats and aircraft, newly-refined fine metals…and a whole bunch of other specific goods, services and transactions. To understand them all, it’s best to refer to the IRD web-page about zero-rated supplies. 

The most common zero-rated situations relate to international transactions for selling and buying goods or services. 

If you have customers overseas who have no trading base in New Zealand, you aren’t required to charge GST on services or products you sell to them. For example, if you’re a freelance writer and you sell a story to a UK-based newspaper, don’t add GST to your invoice. If you buy something for your business from an overseas supplier who has no trading base in New Zealand, you shouldn’t have to pay GST on that purchase. Always check the invoice to see if there’s a GST component. This zero-rated rule also applies if you are purchasing physical materials for your business, such as cushion covers from a supplier in Istanbul for your home décor store.