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Updated June 2026

GST Zero-Rating on Exported Services from NZ

Genuine exports of services can be zero-rated under NZ GST, letting you charge 0% while still claiming back GST on related costs — but the conditions are specific.

Last updated: June 2026

Genuine export of services
Zero-rated
0% GST, input tax still claimable
Key condition
Recipient outside NZ
and not merely a local agent of an NZ-based entity
Zero-rated vs exempt
A meaningful difference
only zero-rating preserves your input tax claims

What qualifies as a genuine export of services

For a service to be zero-rated as an export, the recipient generally must be outside New Zealand at the time the service is performed, and the service must not relate to land or goods physically located in New Zealand. Simply invoicing a foreign-registered entity isn’t sufficient on its own if the real beneficiary of the service is actually in New Zealand — the substance of who genuinely receives and benefits from the service matters.

Why zero-rating matters more than exemption

Zero-rated exports let you charge 0% GST while still claiming input tax credits on your related business costs, unlike exempt supplies which generally don’t allow input tax claims at all. This is a meaningful practical difference for freelancers and consultants regularly exporting services — you get the benefit of not adding GST to invoices for genuinely offshore clients, while retaining your ability to claim back GST on business expenses.

Common situations to check carefully

Services related to NZ land or physical goods located in NZ generally don’t qualify for zero-rating even if the client is offshore, since the place-of-supply rules for these categories follow the location of the land or goods rather than the client’s location. Services provided to a non-resident who is nonetheless in New Zealand at the time the service is performed can also fail to qualify — the recipient’s physical presence at the time of supply is a meaningful factor.

Frequently asked questions

Do I need to charge GST on services sold to an overseas client?

Generally not, if the supply genuinely qualifies as a zero-rated export under the required conditions — recipient outside NZ, and the service isn’t related to NZ land or goods.

Does export income still count toward my NZ$60,000 threshold?

Yes, zero-rated export services still count as part of your taxable turnover for registration threshold purposes, even though 0% GST is actually charged.

Can I still claim GST back on costs related to zero-rated exports?

Yes, this is the key advantage of zero-rating over exemption — you retain full input tax credit claims on related business costs.

What if my offshore client is actually in New Zealand when I provide the service?

This can disqualify the supply from zero-rating, since the recipient’s physical presence in NZ at the time of supply is a relevant factor, regardless of where they’re normally based.

Does zero-rating apply to services related to NZ property?

Generally no — services connected to land or goods physically located in New Zealand typically follow the location of the property rather than the client’s residence, even for an offshore client.

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General guidance only. Zero-rating conditions have specific requirements worth checking carefully. Always verify with Inland Revenue (IRD) or consult a qualified accountant before making decisions.

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