VAT and Sales Tax Rates in New Zealand for 2024

New Zealand VAT Rate

13.00%

About $13 tax on a $100 purchase

Exact tax amount may vary for different items

The current New Zealand VAT (Value Added Tax) is 13.00%.

The VAT is a sales tax that applies to the purchase of most goods and services, and must be collected and submitted by the merchant to the New Zealand governmental revenue department.

New Zealand has one of the lowest VAT tax rates in the world, charging a maximum VAT rate of 13%.Countries with similar VAT rates include Luxembourg with a VAT of 15%, Spain with a VAT of 16% and Mexico with a VAT of 16%.

VAT/Sales Tax	Reduced VAT Rate	World VAT Rank
13%	None	28th of 34

New Zealand VAT Refund For Visitors

Visitors to New Zealand may be able to get a refund of the New Zealand VAT tax paid on any goods bought for deportation. To get a VAT refund, you must present receipts for the goods purchased (and possibly proof of your deportation of the goods) to a New Zealand VAT refund station (which are often found in airports, tourist offices, or international travel hubs).

Some localities have a minimum purchase price for which a VAT refund can be claimed, or certain purchase types which cannot be made tax-free. A VAT refund of up to 13.00% of your total expenditures may be refunded for qualifying purchases. Regulations on VAT and sales tax refunds vary across countries and by region, so be sure to check ahead before expecting a New Zealand VAT refund.

New Zealand VAT Law For Businesses and Merchants

Businesses in New Zealand are required to collect a sales tax of 13.00% on behalf of the government, which they must submit to the applicable New Zealand revenue department in a periodical VAT tax return. Unlike the United States' sales tax, which is only charged on sales to end consumers, the VAT is collected on all sales - even of raw materials.

Businesses may be required to register for a New Zealand VAT number or other identifier to enable the government to track and verify VAT tax returns. VAT collection is a responsibility of the merchant, and failure to collect and submit the appropriate tax amounts may result in severe penalties.