GST on Services to Overseas Clients
Working with international clients? Here's exactly when you can charge 0% GST and what evidence you need to prove it to the IRD.
If you provide services to overseas clients and those services are consumed outside New Zealand, you can zero-rate them — meaning you charge 0% GST to your international client.
The Best Part: GST Refunds
Unlike "exempt" supplies, zero-rated supplies still allow you to claim back 15% GST on all your New Zealand business expenses. Because you are charging 0% but claiming 15%, you will frequently receive GST refunds from the IRD.
The "Consumed Outside NZ" Test
Common Freelancer Scenarios
You build software in NZ for a client based in California. They use it in their US business.
0% GSTYou provide business strategy advice via Zoom to a Sydney-based company.
0% GSTYou create logos and branding materials for a London marketing agency.
0% GSTThe NZ Property Trap (Exception)
Services directly connected to land or property in New Zealand are NOT zero-rated — even if the client paying the bill lives overseas. For example, if an overseas investor hires you to manage or renovate their Auckland rental property, you must charge them 15% GST.
Proof Requirements
To legally zero-rate your services, you must be able to prove your client is not a New Zealand resident. The IRD requires at least two pieces of evidence from this list:
- ✓ Billing address: Client's physical invoice address is overseas.
- ✓ IP address / geolocation: Website analytics or Stripe/PayPal payment data.
- ✓ Bank details: Swift code or payments arriving from an overseas bank account.
- ✓ Mobile country code: Phone number with an international prefix.
- ✓ Business registration: Company registered overseas (e.g. ABN in Australia, EIN in the US).
What About Services Performed IN New Zealand?
Services physically performed in NZ for someone who is in NZ at the time are typically not zero-rated, even if they're paid for by an overseas entity.
Example: A training course delivered in an Auckland conference room to employees of an Australian company would be subject to 15% GST because the service is consumed in NZ. But the exact same training delivered via Zoom to employees sitting in a Sydney office would be 0% GST.
Frequently Asked Questions
Yes. Only GST-registered businesses can zero-rate supplies and claim input tax credits. If you're not registered, you don't charge GST at all — but you also can't claim any back.
If you're invoicing the NZ subsidiary (a NZ-registered entity), you generally charge 15% GST. If you're invoicing the overseas parent company directly, it may be zero-rated — confirm exactly who the actual customer is.
Yes. Show the line item as zero-rated (e.g., 'GST 0%' or 'Zero-rated export') so it's clear you've applied the correct treatment. Don't just leave GST off entirely, as this can look like a mistake.
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