Verified for 2026 Tax Year

Exporting Goods: The 0% GST Rule

Selling physical products overseas? Learn how to legally charge 0% GST and the exact paperwork required by the IRD.

When you export physical goods from New Zealand, the sale is generally "Zero-Rated." This means you charge 0% GST to your overseas customer, but you can still claim back the 15% GST on your business costs and raw materials.

Because this creates a situation where the IRD owes you a refund, they have very strict evidence requirements to prove the goods actually left the country.

The 28-Day Rule

To qualify for the 0% GST rate, the goods must generally be exported within 28 days of the time of supply (which is usually the date you issue the invoice or receive payment, whichever is earlier).

The Zero-Rating Export Process

1. Overseas customer buys product

2. You issue a "Tax Invoice" showing 0% GST

3. You ship goods out of NZ within 28 days

4. Keep Waybill/Customs Entry on file for 7 years

Required Evidence for Zero-Rating

You cannot simply take the customer's word that they live overseas. You must hold official documentation proving the goods physically left New Zealand:

✓
Bill of Lading or Air Waybill: The official shipping document showing the destination is outside NZ.
✓
Customs Export Entry: The official government record generated when goods over $1,000 are exported.
✓
Courier Tracking Summary: For smaller items sent via international post (e.g., NZ Post eShip tracking).

The "Hand-Carried" Tourist Trap

If a tourist buys a product in your NZ shop and tells you they will take it overseas in their suitcase, you MUST charge them 15% GST.

Zero-rating only applies if YOU (the seller) arrange the export. If the buyer takes physical possession of the item in New Zealand, the sale is subject to 15% GST.

What about Duty-Free Stores?

Licensed duty-free stores operate under highly specific customs rules. Because they sell goods to departing passengers who have passed through security and are effectively leaving the country, they are legally allowed to sell items without GST. Standard retail stores cannot do this.

Frequently Asked Questions

Do I charge GST on sales to Australia or the USA?

No. If you are physically shipping the goods from New Zealand to an overseas destination, the sale is zero-rated (0% GST).

What happens if I don't have proof of export?

If the IRD audits you and you cannot prove the goods left the country, they will re-assess the sale at 15% GST and charge you back-tax and penalties.

Can I zero-rate an item if a tourist buys it in my shop and takes it in their suitcase?

No. The 'Hand-Carried' rule states that if the customer takes possession of the goods in New Zealand, you must charge 15% GST. Zero-rating only applies if YOU (the seller) arrange the export.

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