GST for hospitality NZ
Cafes, restaurants, takeaways and hotels: who remits 15%, how menu and room rates work, and where the four week hotel rule changes the maths.
This guide is for New Zealand hospitality operators who sell food, drink or commercial accommodation every day. It covers the $60,000 registration line, who pays versus who remits GST, menu pricing at 15%, and how hotel room GST differs once a stay passes four weeks. 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 charging GST guidance, GST on short stay and commercial accommodation, special supplies rules, GST guide IR375, and the Goods and Services Tax Act 1985. Short stay marketplace hosts still need the separate Airbnb and listed services rules. NZQA hospitality qualifications are a training path, not a GST registration.
| Supply | If you are GST registered | Typical rate treatment |
|---|---|---|
| Dine in meal, takeaway, drinks (incl. alcohol) | Charge GST on the taxable supply | 15% (no NZ “GST free food” category for hospitality sales) |
| Hotel / motel room under 4 weeks | Charge GST on full domestic accommodation value | 15% |
| Same room after 4 weeks (domestic goods and services) | Charge GST on 60% of that domestic value | Effective 9% on the domestic portion |
| Breakfast, restaurant food, toll calls (with the stay) | Keep these separate from domestic room charges | Full 15% continues |
| Long term residential rent in a dwelling | Usually not a hospitality commercial dwelling sale | Often exempt (different rules) |
Who pays GST in NZ hospitality?
Customers pay the GST inclusive price on the till or folio. The GST registered operator remits output tax to IRD on the GST return and claims input tax on business purchases that support taxable supplies. If you are not registered, you generally must not add GST to prices. Threshold detail sits in the $60,000 GST threshold guide. Enrol steps are in how to register for GST in NZ. Broader sector topics live in Industry Specific GST.
Cafe, restaurant, takeaway
Once registered, every taxable menu line is at 15%: dine in, takeaway, coffee, soft drink and alcohol. There is no Australian style GST free basic food carve out for what you sell over the counter.
Hotel and commercial dwelling
Hotels, motels, boarding houses and similar commercial dwellings charge GST on accommodation. Short tourist stays stay at full 15%. Longer stays use IRD’s four week domestic goods and services rule below.
How to calculate GST on menu prices
Work GST exclusive, then add 15% (×1.15). If the board already shows inclusive prices, GST inside the price is 3÷23. Use the free GST calculator on the homepage to add or remove 15% on any line, or read GST maths NZ for worked formulas. Corporate catering invoices can be built in the GST invoice generator when you need taxable supply information on paper.
Board price $5.50 including GST.
GST = $5.50 × 3 ÷ 23 = $0.72 (rounded).
Exclusive = $5.50 minus $0.72 = $4.78.
Exclusive $4.78 × 1.15 = $5.50 inclusive again.
GST rate on hotel rooms and hotel services
IRD’s commercial accommodation page is the source of truth for hotels and similar commercial dwellings. For the first four weeks you charge GST on the full value of the accommodation. After four weeks you charge GST on only 60% of the value of domestic goods and services (the right to occupy, cleaning, power, heating, and similar). That is an effective 9% GST on that domestic portion. Food, toll calls and other non domestic items stay taxable at the full 15%. Split bed and breakfast packages so breakfast does not ride on the reduced domestic value.
If the commercial dwelling is a residential establishment and you agree up front that the stay will be four weeks or more, IRD allows the 60% domestic valuation from day one. Marketplace short stay bookings can follow listed services rules instead: see Airbnb and short term rentals when a platform collects GST.
Exclusive domestic room rate $200 per night after the first four weeks.
Taxable value = 60% × $200 = $120.
GST = $120 × 15% = $18 (effective 9% of $200).
Inclusive total for that night = $200 + $18 = $218 if you quote exclusive then add GST on the reduced value.
Pull highlight: Tourist hotel nights under four weeks are ordinary 15% GST. The reduced domestic valuation is a long stay commercial dwelling rule, not a second GST rate for every hotel guest.
What you can claim (and what bites operators)
Claim input tax on stock, packaging, kitchen equipment, merchant fees and other costs that support taxable sales when you hold taxable supply information. Overview: claiming GST NZ. Owner drawings of shop food or drink need a private use adjustment: private use of stock, samples and giveaways. Client entertainment you buy as a customer of another venue often lands in the 50% entertainment GST path: GST on entertainment expenses.
Cash sales and till discipline
Hospitality is a classic cash intensive sector. Record every till sale, reconcile POS to bank, and keep wage records that match rosters. Under reported sales and under the table wages are what IRD campaigns in this industry look for. Fix gaps with a voluntary disclosure if needed rather than hoping a sleep easy visit never comes.
Staff wages sit beside GST, not inside it
PAYE, KiwiSaver and ACC on employees are income tax and employment rules, not a GST supply. Use the PAYE calculator for take home maths on hourly kitchen and floor staff. Delivery riders on platforms follow listed services rules covered in Uber and gig economy GST; your restaurant’s own taxable meal sales still sit on your GST return when you are the supplier.
Service on the floor
Use case: Wellington cafe
Situation: GST registered sole trader, weekly sales about $4,200 inclusive. GST: $4,200 × 3 ÷ 23 ≈ $548 output for the week before purchase credits. Action: set that GST aside each week so the two monthly myIR payment is not a surprise.
Use case: Auckland takeaway
Situation: Exclusive food cost $80 on a catering tray quoted at $160 exclusive plus GST. GST: $24 on the sale; claim GST on the $80 stock invoice if registered and records are held. Action: price exclusive then add 15% so margin maths stay clean.
Use case: Queenstown hotel
Situation: Two night tourist stay at $250 exclusive per night, plus $40 exclusive breakfasts. GST: rooms $75; breakfasts $12; inclusive folio $627. Action: keep F&B lines separate from room so a later long stay never misapplies the 60% domestic rule to food.
FAQs
Who pays GST in NZ hospitality?
Customers pay a GST inclusive price on taxable meals, drinks and commercial accommodation. The GST registered business remits the output tax to Inland Revenue on its GST return. Unregistered businesses generally must not charge GST.
What is the GST rate on hotel rooms in New Zealand?
GST registered hotels and other commercial dwellings charge 15% GST on short stays. After four weeks, GST is charged on only 60% of the domestic goods and services value (an effective 9% on that portion). Food and other non-domestic charges stay at full 15%. Marketplace short stay rules can override the reduced rate when a platform collects GST.
Is there GST free food for cafes and restaurants in NZ?
No. New Zealand has no general GST free supermarket food category for hospitality sales. A GST registered cafe, restaurant or takeaway charges 15% on dine in, takeaway and drinks including alcohol.
Publisher path: About Us and Contact Us. Filing frequency changes: change GST filing frequency in myIR.
Last verified 31 August 2026 against Inland Revenue charging GST, GST on short stay and commercial accommodation, special supplies, GST guide IR375, and the Goods and Services Tax Act 1985. Ads may fund this free site. Not tax advice.