GST and E-Commerce

Sale of Physical Goods via the Internet
If a GST-registered person sells goods via the internet and the goods are physically supplied to a customer in New Zealand, GST is chargeable at 15%.

If goods are sold via the internet and physically supplied to customers overseas the sales can be zero-rated for GST purposes. It is important to prove the goods have been exported (entered for export by the supplier) and sufficient evidence should be held to prove the export.

Sale of Digital Goods via the Internet
If a GST-registered person sells digital products via the internet which are downloaded such as music, software or digital books, to a New Zealand customer they must charge 15% GST. (These products are treated as services for GST purposes).

If digital products are sold via the internet and downloaded by an overseas customer they can be zero-rated but it is important to prove that the products are "exported" otherwise GST must be charged.

Evidence required to prove products are exported

Scenario 1:
Physical goods are exported overseas by the supplier. The customer is located overseas.

Delivery evidence, for example, bill of landing showing export by sea, air waybill for export via air, packing list or delivery note showing overseas delivery address, insurance documents.
Purchase order showing overseas delivery address.

Scenario 2:
Physical goods are exported overseas by the supplier. The customer is located in New Zealand at the time of purchase.

Delivery evidence, for example, bill of lading showing export by sea, air waybill for export via air, packing list or delivery note showing overseas delivery address, insurance documents.
Purchase order showing overseas delivery address.

Scenario 3:
Digital products are downloaded by a customer who is located overseas.

The customer should make a declaration at the time of the transaction that they are located overseas and that the products will be used outside New Zealand. For example, "I declare that I am not in New Zealand at this time and will not be making use of this supply in New Zealand" and provide their name and full address.
Evidence of payment received from overseas customer. Credit card information may be a guide as certain credit card number series may only be issued in New Zealand. However, this process is changing and is not entirely reliable.

Email address may suggest that the customer is overseas but is not final proof as a New Zealand resident can obtain an overseas email address.
Internet Protocol (IP) address of the customer - although this is not final proof that the customer is overseas.

Note: In this scenario, as can be seen from the above list, it is unlikely that only one form of information will prove that the customer is overseas. It is expected that a reasonable attempt would be made to confirm the customer is overseas to support zero-rating. For more information refer to the E-Commerce and GST section on the IRD website.

What People Say About Us

Ian Gundensen 
Ian Nicholas and his team at "The Accounting Room" have been our accountants for 10 years simply because we believe they are the best for our situation. We learnt many years ago that to be successful you need a good team around you.

We needed someone who would listen, treat us as a person and not just a number. Above all someone who had the knowledge, skills and professionalism to help us achieve our goals.

Marion and I appreciated the advice they gave us when we set up "The Gundy Development Company" and we have no hesitation in strongly recommending their services to anyone who requires professional guidance with such complexities as taxation.


Ian Gundesen - Director. Author, Inventor, Licensed Auctioneer.



During the 3 years I worked out of NZ, Ian and the team from the Accounting Room kept me right with the New Zealand tax laws. The Accounting Room team worked closely with my Australian tax accountant and between them I was able to minimise my taxes. I found them to be a very professional team and would have no hesitation in recommending them as the accountants of choice.



Sandy Mutch - A B MUTCH CONSULTANCY PTY LTD



4 seasons
|| www.4seasons.co.nz ||

We have been clients of The Accounting Room (formally Everest and Vincent) since we purchased our business 10 years ago. As first time business owners we needed an accountant who would explain things in language we would understand, someone we could trust 100%. We found that and more with the staff at The Accounting Room, especially Anthony Vincent who has and still does look after us. Anthony is our accountant but we also regard him as a friend. Nothing is ever too much trouble for Anthony or any of the staff and when you call you are always greeted warmly. Without hesitation we have and would recommend The Accounting Room and wish the team every success in their endeavours.


Glynn and Debbie Taylor - Owner operators - 4 Seasons NP Ltd



Therapy Works
|| www.therapyworks.co.nz ||

Therapy Works has worked with Ian and The Accounting Room from the outset of starting up our business just over 10 years ago. We have greatly valued his advice and expertise in ensuring our financial systems are both efficient and easy to understand. Ian’s high standard of professionalism and attention to detail cements our high level of trust with the company. We look forward to an ongoing working relationship and have no hesitation in recommending The Accounting Room to other businesses!


Michelle McIntosh – Therapy Works Ltd



Guize Clothing
|| www.guize.co.nz ||

I have been a client of Anthony Vincent and the team at “The Accounting Room” for many years. I have found there financial scrutiny and customer service to be second to none. They are very approachable any time of the day whether to obtain advice or just to clarify taxation queries. I have found them to be very knowledgeable within their field and always up to date. Their manner is always professional and courteous. I am very happy to have Anthony and the team working for us, and look forward to many more years of this working partnership.


Brett Stokell – Managing Director – Guize Clothing Ltd



CSA Surfboards
|| www.csasurfboards.co.nz ||

The Accounting Room save our company time and money – just what you want. We are grateful to have an accountant that is up-to-date with technology, approachable, prompt and a clear communicator. We are a small business but Ian gives us the time, advice and respect to be big.


Bianca Aldridge | CSA Surfboards



The Cleaning Angels
|| www.angelswhoclean ||

I would highly recommend Anthony Vincent and The Accounting Room team to anyone needing accounting services. Anthony has helped my business grow and has been there for me anytime I had queries. Anthony is kind, patient and genuinely wants to help. All the staff I have encountered at The Accounting Room are like this, very helpful and genuine people who all do an extremely good job.


Glenwyn Flynn – The Cleaning Angels



Brokers Panel & Paint
|| www.brokerspnp.co.nz ||

The Accounting Room are a very professional and helpful group of people to deal with. When I started my business I had no knowledge of accounts or any of the processes involved in running the financial side of a business. The Accounting Room made this learning period very simple and were always available to explain and help me to learn. Now that my business has grown they are still helping me with new advice to help continue the growth of my business.


Kurt Broker – Owner/Manager , Brokers Panel and Paint Ltd