GST for health professionals NZ
GPs, dentists, physiotherapists and allied health: what is taxable at 15%, what is actually exempt, and how mixed practices split their GST return.
This guide is for New Zealand health professionals who invoice patients, ACC, insurers, or public funders, or who run a clinic alongside other income. It covers the exempt versus taxable mix that trips up GPs, dentists and physios after reading Australian blogs. 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 exempt supplies guidance, charging GST, GST guide IR375, registering for GST (IR365), Health New Zealand provider payment rules, and the Goods and Services Tax Act 1985. Medical Council or Physiotherapy Board registration fees are professional costs, not a substitute for GST registration.
The Australia myth
Australian blogs often say GP, dental and physio services are GST free. That is Australian law. New Zealand has no equivalent blanket exemption. If you are GST registered here, a standard consultation, filling, adjustment or ACC treatment session is usually a taxable supply at 15%. Treat Australian checklists as wrong for NZ unless IRD says otherwise.
Story on the ground
A Christchurch GP locum invoices three practices as a company. Turnover passes $60,000. She assumed clinical work was GST free because her Australian colleague said so. IRD’s view: she carries on a taxable activity in the form of a profession, must register, and should have been charging 15% on locum fees plus holding taxable supply information. The fix: register, reprice or add GST to future invoices, and use the payments basis if cash timing hurts.
Quick decision: does GST apply to this income?
| Supply in a health setting | Typical GST treatment (NZ) | Claim input tax on related costs? |
|---|---|---|
| GP, dental, physio consultation or treatment fee | Taxable 15% when GST registered | Yes, on business share of clinic costs |
| ACC or insurer billed treatment (provider invoice) | Taxable 15% when GST registered | Yes, if used in taxable activity |
| Cosmetic or elective procedures (private pay) | Taxable 15% | Yes on equipment and consumables |
| Retail products (toothpaste, supplements, skincare) | Taxable 15% | Yes on stock purchases |
| Salary or wages as hospital employee | Outside GST (not a taxable activity) | No |
| Long term residential rent from a flat upstairs | Exempt | No on exempt portion (apportion) |
| Penalty interest on overdue patient accounts | Exempt financial supply | No on interest itself |
GPs and locums
A general practice taxable activity includes capitation managed by a PHO, private consultation fees, after hours surcharges, and locum invoices to other practices. Health New Zealand provider payment guidance expects a valid GST tax invoice before paying many claims. That only works if you are registered and show GST correctly. Employee GPs on PAYE do not charge GST on wages. Locum companies and contractor GPs do. Threshold detail: $60,000 GST threshold guide. Broader sector hub: Industry Specific GST.
Schedular withholding on locum pay is income tax, not a GST exemption. If you receive schedular payments and are GST registered, you still add 15% GST on the fee base. See withholding tax calculator and GST for contractors.
Dentists and oral health
Routine dental work, hygienist fees, and surgical procedures in a private clinic are taxable supplies at 15% when you are registered. Cosmetic whitening sold as a standalone aesthetic service is still taxable in New Zealand (unlike Australian GST free treatment tests). Split retail sales of brushes or kits on the same invoice so stock lines stay visible for both income tax and GST records.
Physiotherapists and allied health
Private patients and ACC billed treatment sessions are taxable when you are GST registered. ACC weekly compensation paid to an injured worker is a different payment type: it is not your clinic invoicing ACC for treatment. Do not confuse patient treatment fees with personal ACC income protection. Exempt versus taxable definitions: exempt vs zero rated supplies.
Treatment fee $95.00 exclusive.
GST = $95.00 × 15% = $14.25.
Invoice total = $109.25 inclusive.
Use the free GST calculator to check inclusive board fees, or build the PDF in the GST invoice generator.
Pull highlight: Being a registered health professional does not automatically make your services exempt. IRD exempt supplies are a short statutory list. Ordinary clinical income sits outside it.
Mixed practice audit checklist
Use this before each GST return when more than one supply type runs through the same bank account.
- ✓Separate clinic fees from residential rent in accounts if you own the building and lease a flat upstairs.
- ✓Tag retail product sales separately from treatment lines on invoices.
- ✓Hold taxable supply information for equipment, software and fitout before claiming input tax in claiming GST NZ.
- ✓Apportion shared costs (power, insurance, reception wages) when part of the building supports exempt rent.
- ✓Confirm locum or contractor status before registering: employees stay on PAYE only. See contractors vs employees.
On the ground
Use case: Auckland dental clinic
Situation: $420,000 annual fees plus $18,000 retail product sales, all GST registered. GST: output tax on the full taxable turnover before credits. Action: run product lines separately in POS so stock shrinkage adjustments do not muddy treatment GST.
Use case: Wellington physio ACC mix
Situation: 60% ACC invoices, 40% private EFTPOS, turnover $72,000. GST: 15% on both streams once registered. Action: invoice ACC with the same GST treatment as private clients unless a specific contract says otherwise.
Use case: Dunedin GP landlord
Situation: Practice company earns $500,000 clinical income and $24,000 residential rent from a flat. GST: clinic income fully taxable; rent exempt. Action: apportion building insurance and rates between taxable and exempt use before claiming input tax.
FAQs
Are GP and dentist services GST exempt in New Zealand?
No. New Zealand does not have a general GST exemption for medical, dental or physiotherapy services like Australia does. When you are GST registered, standard consultations and treatments are usually taxable at 15%. IRD exempt supplies are things like residential rent and many financial services, not ordinary clinical fees.
Do salaried hospital doctors need to register for GST?
Usually no. Salary and wages are not a taxable activity for GST. A DHB or hospital employee on PAYE does not charge GST on wages even at high income. GST registration applies when you carry on a separate taxable activity, such as a locum company, private practice, or clinic you operate.
Is ACC treatment income subject to GST?
When a GST registered physiotherapist, dentist or other treatment provider invoices ACC or a patient for treatment services, those fees are generally taxable supplies at 15%. That is separate from ACC weekly compensation paid to an injured worker, which follows income tax rules and is not a GST supply by the worker.
Publisher path: About Us and Contact Us. Taxable activity test: what is a taxable activity NZ.
Last verified 1 September 2026 against Inland Revenue exempt supplies, charging GST, GST guide IR375, registering for GST IR365, Health New Zealand provider payments, and the Goods and Services Tax Act 1985. Ads may fund this free site. Not tax advice.