GST for beauty, hair and personal services NZ
Salon owners, chair renters, mobile beauticians and barbers: 15% on services and retail, the $60,000 line, gift vouchers, and what you can claim on colour stock and rent.
This guide is for New Zealand hair salons, barbers, nail bars, day spas, beauty therapists, massage studios and mobile personal service operators. It covers taxable treatment and retail sales, registration timing, chair rental versus employment, voucher rules, and common price list traps. Figures are working papers for the 2026/27 year (1 April 2026 to 31 March 2027). GSTCalc.nz is not Inland Revenue (IRD). Ads may fund this free site. This is not tax advice.
Checked against IRD GST overview, registering for GST, charging GST, claiming GST, voucher and gift card rules, entertainment expense guidance, GST guide IR375, and the Goods and Services Tax Act 1985. Clinical health services billed through ACC sit in the separate health professionals guide.
Three NZ businesses, three GST paths
Use case: Auckland salon owner
Situation: GST registered company, $18,000 monthly takings (services plus retail), two employed stylists on PAYE, two chair renters invoicing their own clients.
GST: Salon remits output tax on all till and EFTPOS sales it controls; claims input tax on colour, rent, Timely subscription and merchant fees.
Action: reconcile POS to bank weekly and keep chair agreements showing who invoices which client.
Use case: Christchurch chair renter
Situation: Sole trader stylist, $72,000 client billings in 12 months, pays $800 monthly chair rent inclusive of GST.
GST: Must register, charge 15% on services, claim GST on chair rent, colour bought personally, and training courses.
Action: issue taxable supply information for every client payment; do not rely on the salon’s GST number for your own turnover.
Use case: Wellington mobile beautician
Situation: Home based lashes and brows, $48,000 turnover, high product spend, no employees.
GST: Under mandatory registration but voluntary registration may recover GST on lash kits and vehicle costs.
Action: model whether adding 15% to menu prices beats silent GST on inclusive quotes before registering early.
Quick take for the salon floor
Personal services are ordinary taxable supplies at 15% in New Zealand. There is no Australian style GST free carve out for haircuts or beauty treatments. Once registered, add GST to services and retail together, keep receipts for stock and rent, and set output tax aside before the myIR due date.
What attracts 15% GST?
| Supply | Typical GST treatment | Note |
|---|---|---|
| Haircut, colour, blow dry, barbering | 15% when registered | Taxable personal service |
| Nails, lashes, brows, facial, waxing | 15% when registered | Not exempt health unless a separate clinical rule applies |
| Retail shampoo, styling product, tools sold to clients | 15% when registered | Same return as services; track stock shrinkage |
| Generic $50 salon gift card | Usually GST at redemption | Not at initial sale |
| Specific voucher for one defined service | 15% when voucher sold | Do not double tax at redemption |
| Employed stylist wages | No GST on wages | PAYE employer handles income tax |
Registration and the $60,000 threshold
IRD’s registering for GST page says you must register if you carry on a taxable activity and turnover was at least $60,000 in the last 12 months, you expect it will be in the next 12 months, or you add GST to your prices. Salon turnover includes service fees and retail product sales together. The test is rolling, not tied to 1 April alone. Detail: $60,000 GST threshold guide. Enrol in how to register for GST in NZ. Sector hub: Industry Specific GST.
Salons buy colour, retail lines and disposables with GST included. Voluntary registration can unlock input tax before you hit the mandatory line, but you must then charge GST, file returns, and keep taxable supply information. Weigh it in should I register for GST voluntarily.
Salon owner, employee or chair renter?
A stylist on PAYE wages is an employee. They never charge GST on wages. The salon owner remits GST on services the business sells through its till, POS or merchant account. A chair or booth renter who invoices their own clients runs a separate taxable activity. If their turnover crosses $60,000 they register in their own name even when working inside someone else’s shop. Employment status is an IRD and employment law question: see contractors vs employees: the GST trap. Salon payroll staff: PAYE calculator.
Quoting services and retail on the menu
Work GST exclusive, then add 15%. If the price board shows inclusive figures, GST inside the price is 3÷23. A cut quoted $60 exclusive becomes $69 inclusive. Retail add ons at checkout follow the same rule. Use the free GST calculator on the homepage or read GST maths NZ. Appointment receipts with GST shown can be built in the GST invoice generator.
Cut $45 + colour $85 = $130 exclusive subtotal.
GST at 15% = $19.50
Inclusive total = $149.50
Retail product add on $28 inclusive → GST = $28 × 3 ÷ 23 = $3.65
The price list trap
Many stylists cross $60,000 on a busy year but keep old wall prices that never included GST. About $8,700 of every $65,000 inclusive turnover is GST owed to IRD. If you do not reprice or add GST at checkout, that slice comes from margin, not from clients. Raise prices or show GST clearly before IRD backdates registration.
Gift vouchers and prepaid packages
Salon Christmas vouchers and prepaid packages need correct timing. Generic dollar value cards usually defer GST until redemption. Specific service vouchers trigger GST when sold. Configure Timely, Fresha or your POS so redemption does not charge GST twice. Expired unredeemed value may need GST in the period of expiry. Full rules: GST on vouchers and gift cards.
Pull highlight: A $100 “any service” gift card is not $15 GST on the day you sell it. GST lands when the client actually has the cut, colour or facial.
What salons can claim
Claim input tax on costs that support taxable supplies when you hold taxable supply information. Common salon claims include colour and retail stock, chair or shop rent, laundry, tools, Timely or Fresha fees, marketing, training courses, and merchant service charges. Overview: claiming GST NZ. Taking retail product home for personal use needs a private use adjustment: private use of stock, samples and giveaways. Wine, coffee and nibbles for client entertainment often follow the 50% entertainment path: GST on entertainment expenses.
Salon GST compliance checklist
High retail mix salons often suit invoice basis so GST on stock is claimed when supplier invoices arrive. Mobile operators with slow paying corporate clients may prefer payments basis so GST follows cash. Compare in invoice basis vs payments basis and the retail versus contractor case study at retail vs contractor GST.
FAQs
Do hair salons and beauty therapists charge GST in New Zealand?
Yes. Haircuts, colour, nails, facials, massage for relaxation, barbering and most personal grooming services are taxable supplies at 15% once the business is GST registered. New Zealand does not treat ordinary salon work as GST free health care.
Does a chair renter need their own GST registration?
If the stylist runs their own taxable activity and turnover reaches $60,000 in a rolling 12 months, or they add GST to prices, they must register separately from the salon owner. Employed stylists on PAYE wages do not charge GST. Chair rent paid to a GST registered salon owner includes GST the renter may claim if registered.
When is GST due on salon gift vouchers?
A generic dollar value gift card usually triggers GST when redeemed, not at sale. A specific voucher for a defined service such as a one hour facial triggers GST when sold. Unredeemed expired vouchers may need GST accounted for when they expire.
Publisher path: About Us and Contact Us. Taxable activity test: what is a taxable activity NZ. Record keeping: GST record keeping.
Last verified 1 September 2026 against Inland Revenue GST overview, registering for GST, charging GST, claiming GST, voucher rules, entertainment expenses, GST guide IR375, and the Goods and Services Tax Act 1985. Ads may fund this free site. Not tax advice.