GST on membership fees NZ

What a membership fee is for GST

A membership fee (subscription, levy, or joining fee) is money paid so someone becomes or stays a member and gets the benefits that go with that status: access to facilities, voting rights, newsletters, member rates, networking, accreditation, or other services. That payment is consideration for a supply of services.

It is not the same as an unconditional donation. A donation is a gift with nothing expected in return. If the payer gets membership benefits, newsletters, discounts, or networking, it is subscription income, not a donation. Broader expense topics sit in the Business and Expenses GST category. Software SaaS “subscriptions” are a different topic: see GST on subscriptions, software and SaaS.

Is there GST on membership fees?

If the organisation is GST registered, membership fees are normally taxable at 15%. IRD’s GST for not for profits page tells registered NFPs to include these income types in the GST return (and claim related input tax):

• Subscriptions
• Affiliation fees
• Admission fees
• Trading activities, hall hire, advertising or sponsorship, and other listed items

IRD’s exempt list for NFP GST returns is short: sale of donated goods or services, residential rent, and interest or dividends. Membership fees are not on that exempt list. Once registered, charge GST on subscriptions unless a specific rule zero rates the supply (for example some supplies to non residents).

GST on club membership fees

Sports clubs, hobby clubs, and community clubs sit inside the GST Act definition of taxable activity. Section 6 and IRD’s IS 25/21 say a taxable activity can be carried on as an association or club, whether or not for profit. If the club supplies membership for a fee on a continuous or regular basis, that is a taxable activity.

IRD’s sports clubs and societies page is clear that an income tax exemption does not cancel GST or PAYE. Clubs may still need to register for GST, and if registered they must charge GST on sponsorship receipts. The same logic applies to membership subscriptions once the club is registered. More on clubs and associations is in what is a taxable activity NZ and non profit and charities GST rules.

GST on gym membership fees

A commercial gym selling month to month or annual access is a textbook taxable supply of services. If the gym is GST registered (or must be, because taxable supplies hit $60,000), membership fees include GST. Quote fees exclusive or inclusive, but return the tax correctly. Work inclusive amounts with 3÷23 on the GST calculator or GST maths NZ.

From the member’s side: a personal gym membership is private use. A GST registered sole trader or company generally cannot claim that 15% as input tax. Staff gym perks can also raise fringe benefit tax issues. Do not treat a personal gym fee like a deductible business cost.

GST on membership fees of a society or not for profit

Incorporated societies and other NFPs often hear that mutuality makes member subscriptions “tax free”. That is mainly an income tax idea. GST is separate. Charity registration, donee status, or an amateur sports income tax exemption does not wipe GST off membership fees.

If the society is GST registered, IRD expects subscriptions and affiliation fees in the GST return. Real world fee pages for industry and professional bodies in New Zealand commonly quote fees exclusive of GST or state that GST is charged on all subscriptions, including some overseas members (subject to zero rating rules). Keep member invoices as taxable supply information. Compare sponsorship and pure gifts in GST on sponsorship vs donations and grant income in GST on grants and subsidies.

Do membership fees count toward the $60,000 threshold?

Registration turns on taxable activity plus taxable supplies of $60,000 or more in a 12 month period (looking back or forward), or charging GST when you are not yet registered. Detail is in the $60,000 GST threshold guide and how to register for GST in NZ.

Membership fees paid for benefits generally count. IRD Tax Technical QB 19/11 confirms that an unincorporated body providing administrative or management services to its members must include the value of those supplies to members when testing the $60,000 threshold. Unit title bodies corporate have a special statutory carve out; ordinary clubs and societies do not get that carve out.

Do not mix this with total cash through the bank. Unconditional donations and some non taxable flows may sit outside the GST threshold maths. A society that only receives pure gifts may sit under the threshold even with large bankings. A club whose main income is member subscriptions for access and services usually must count those fees.

Charging GST and paperwork

Once registered:

• Include GST in (or on top of) membership fees unless a zero rating rule applies.
• Issue taxable supply information for membership sales that need it.
• Return output tax in the period that matches your accounting basis (invoice or payments).
• Claim input tax only on costs used to make taxable supplies (clubhouse utilities used for taxable membership activity, software used to run the membership system, and so on).

Record keeping sits in taxable supply information and GST record keeping. Sale of donated goods by a non profit body remains outside GST even if membership fees are in.

Claiming GST when your business pays membership fees

If your GST registered business pays a professional institute, industry association, or Qualmark style membership, and the supplier charges 15%, you can usually claim the GST as input tax when the membership is used in your taxable activity and you hold taxable supply information. That is the same path as other business expenses in claiming GST NZ.

Personal club dues, social memberships, or gym fees for private fitness stay private. Do not claim them. If an employer pays a staff membership as a perk, check fringe benefit tax as well as GST.

Overseas members

Some New Zealand associations zero rate membership for non resident members who receive the services outside New Zealand. That follows export of services / remote services style rules, not a blanket “membership is GST free” rule. Domestic members still pay 15% if the body is registered. Confirm the association’s invoicing practice and IRD zero rating conditions before assuming 0%.

Worked examples

Example 1: GST registered sports club. Annual adult fee is $230 including GST. Output tax per member is $30 ($230 × 3 ÷ 23). Include subscriptions in the GST return for the period the fee is accounted for under your basis.

Example 2: Commercial gym. Monthly fee $69 including GST. The gym returns GST on every period’s membership income. A sole trader who uses the gym for personal training cannot claim that GST on their business return.

Example 3: GST registered society. Professional membership $599 exclusive of GST. Invoice shows $599 plus $89.85 GST. A GST registered member business claims $89.85 if the membership supports taxable work.

Example 4: Small community group. Only income is unconditional koha with no membership benefits. That is not a membership fee supply. Compare that carefully with a “membership” that still buys newsletters, events, or voting rights.

Common mistakes

• Assuming income tax mutuality or charity status means no GST on subscriptions.
• Leaving subscriptions out of the GST return when IRD lists them as includable for registered NFPs.
• Counting all bank deposits as taxable supplies, including pure donations.
• Claiming personal gym or social club GST on a business return.
• Mixing software SaaS subscriptions with club or society membership fees.
• Forgetting sponsorship and admission fees are also usually taxable if you are registered.

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FAQs

Is there GST on membership fees in New Zealand?

Usually yes if the organisation is GST registered and the fee is paid for membership benefits or access. Inland Revenue lists subscriptions and affiliation fees as income to include in a not for profit GST return. Unconditional gifts with no benefit in return are different and sit outside GST.

Is there GST on gym membership fees?

Yes when the gym is GST registered. A commercial gym membership is a taxable supply of services. The gym charges 15% and returns it. A business usually cannot claim a personal gym fee as input tax.

Do not for profit societies charge GST on membership fees?

If the society is GST registered, yes. IRD’s GST for not for profits page tells registered NFPs to include subscriptions and affiliation fees in the GST return. Charity or income tax exempt status does not remove that GST duty.

Do membership fees count toward the $60,000 GST threshold?

Yes when they are consideration for supplies made in a taxable activity. Clubs and associations sit inside the GST Act taxable activity definition. Supplies of services to members generally count toward the threshold, unlike unconditional donations.

Can a GST registered business claim GST on professional membership fees?

Yes if the membership is used in the taxable activity, the supplier charged GST, and you hold taxable supply information. Personal gym or club fees for private use are not claimable.

Last verified 30 August 2026 against Inland Revenue GST for not for profits, sports clubs and societies, registering for GST, IS 25/21, QB 19/11, GST guide IR375, and the Goods and Services Tax Act 1985. Ads may fund this free site. Not Inland Revenue. Not tax advice.