GST on subscriptions, software and SaaS NZ

What counts as a remote service subscription?

IRD treats many online products as remote services supplied from outside New Zealand. Examples include digital content, games and apps, software and software maintenance, website services, and online professional services. Monthly SaaS seats sit in that bucket when the supplier is offshore.

Since October 2016, non resident suppliers that sell remote services into New Zealand above the registration threshold must generally register and collect GST on consumer sales. The live IRD page is supplying remote services into New Zealand. Broader expense claiming sits in claiming GST NZ and the Business and Expenses GST category. Consumer style digital rules are also covered in GST on digital services (Netflix Tax).

Is there GST on overseas subscriptions?

Yes for many B2C buys. An overseas SaaS vendor must register when total supplies to New Zealand customers were NZ$60,000 or more in the last 12 months, or are expected to be in the next 12 months. Consumers then usually see 15% GST on the bill.

IRD also says non resident suppliers do not need to register for GST if they only supply remote services to New Zealand businesses that are already GST registered, and the services are for business use. Suppliers should treat NZ customers as unregistered unless the customer states they are GST registered or provides a GST registration number or NZBN.

GST plus IR546 puts the buyer side plainly: non resident businesses are not required to charge and return GST on remote services supplied to New Zealand GST registered businesses. Those supplies can be treated as zero rated (0%). The supplier is also not required to provide taxable supply information for that zero rated remote service path.

GST on Microsoft, Adobe, Zoom and Apple subscriptions

Brand names change billing portals, but the GST pattern is the same.

• Microsoft 365 / Azure: Business admin or billing profiles usually let you enter a NZ GST number. Once accepted, invoices should show no NZ GST (or 0%). Personal Microsoft accounts often still attract GST.
• Adobe Creative Cloud: Same idea through Adobe’s business or tax profile settings. Supply your GST number so B2B remote services are not charged at 15%.
• Zoom and similar SaaS: Check billing settings for tax ID / GST / VAT. Consumer plans without a GST number are treated like B2C.
• Apple subscriptions: App Store and Apple Media Services often sit behind marketplace style billing. Personal Apple IDs commonly include NZ GST. Organisation or business purchasing paths that capture GST registration are the place to stop consumer charging where the rules allow.

Always read the invoice. If GST is not shown, there is nothing to claim as input tax. If GST is shown, decide whether it is a normal NZ taxable supply you can claim, or a remote services charge that should have been zero rated for your GST registered business.

How to stop GST being charged on SaaS

1. Confirm you are GST registered and the subscription is for business use in your taxable activity.
2. Log into each vendor’s billing or admin portal.
3. Add your NZ GST registration number (and NZBN if the form asks).
4. Save, then check the next invoice or tax receipt for 0% GST / no GST line.
5. Keep a screenshot or confirmation email with your GST records for seven years.

If a supplier still charges 15% after you gave your number, contact their support and ask for a credit. That is cleaner than guessing a claim in myIR.

Can you claim GST on software subscriptions?

Local NZ software (for example many NZ accounting, payroll, or practice tools billed by a NZ GST registered company): yes, claim input tax in the usual way when the cost is for taxable supplies and you hold taxable supply information. See taxable supply information.

Overseas remote SaaS with your GST number on file and no GST on the invoice: do not claim. You did not pay NZ GST. Inventing 3÷23 on a zero rated bill is a common error.

Overseas remote SaaS that charged you GST as if you were a consumer: first fix the account and seek a refund from the supplier. Claiming that GST as ordinary input tax is not always straightforward for remote services suppliers on the simplified non resident path, because IRD says they need not issue taxable supply information for zero rated B2B remote services. Get advice if large amounts are involved.

NZ presence suppliers that charge GST under ordinary NZ rules with proper taxable supply information: claim like any other business expense. Some platforms you think of as “overseas” bill through a NZ entity. The invoice entity name and GST number decide the treatment more than the brand logo.

Reverse charge when use is not fully taxable

IR546 explains that if you receive a zero rated remote service and you use it for something other than your taxable activity, you may need a GST adjustment. If estimated or actual taxable use is less than 95%, you work out the GST that would have been charged at 15% and adjust for the non taxable share. That is the reverse charge style outcome for imported remote services.

A business that uses software 100% for taxable supplies usually has no net GST to pay on that adjustment. Mixed private use, exempt activities (for example residential rent), or heavy non taxable use can create a real GST cost. More detail sits in GST on imported services: the NZ reverse charge rules.

App stores and marketplace style billing

IRD’s remote services page notes that online marketplaces such as app stores may have to register and return GST on supplies made through the marketplace instead of the underlying supplier. That is why Apple or Google Play style personal purchases often show NZ GST even when the app maker is overseas.

Listed services rules for rideshare, delivery, and short stay platforms (from 1 April 2024) are a different regime. Do not mix those platform rules with ordinary SaaS seat billing. If you sell through such platforms, read the platform GST statements carefully.

Income tax note (not GST)

GST asks whether 15% was charged and whether you can claim it. Income tax asks whether the software cost is deductible now or capitalised. Cloud configuration and customisation can sit in a grey zone for income tax. That is separate from the GST invoice. IRD has consulted on software expenditure treatment. Speak to your tax agent for large implementation projects.

Practical checklist for NZ businesses

• List every recurring software and SaaS cost.
• Mark each as NZ supplier vs overseas remote service.
• Add GST number / NZBN to every overseas business account.
• Code accounting software: GST on local invoices; no GST on zero rated remote invoices.
• Do not claim GST when the invoice shows none.
• Apportion or reverse charge if taxable use is under 95%.
• Keep invoices and portal confirmations for seven years: GST record keeping.

For add or remove maths on a GST inclusive NZ invoice, use the free GST calculator. File in myIR. Publisher path: About Us and Contact Us.

FAQs

Is there GST on overseas software subscriptions in New Zealand?

Often yes for private consumers. Overseas suppliers of remote services may charge 15% GST once their NZ sales hit the $60,000 threshold. GST registered businesses buying for business use should usually receive a zero rated supply after they give their GST number or NZBN, so no GST is charged.

Is there GST on Microsoft, Adobe, Zoom or Apple subscriptions?

It depends on the account type and whether you are treated as a consumer or a GST registered business. Personal App Store or consumer accounts often include NZ GST. Business accounts that hold your GST number should usually be zero rated by remote service suppliers. Always read the invoice line for GST.

Can I claim GST on an overseas SaaS invoice?

Only if NZ GST was actually charged and you are entitled to input tax with supporting records. If you gave your GST number and the invoice shows no GST, do not invent a claim. If GST was charged by mistake on a B2B remote service, ask the supplier for a credit first.

What is the reverse charge on software subscriptions?

If you receive a zero rated remote service and use it less than 95% in your taxable activity, IRD expects a reverse charge style adjustment for the non taxable portion. Fully taxable businesses usually have no net GST cost from that adjustment.

Do NZ accounting apps charge GST I can claim?

Yes. Local NZ GST registered suppliers charging 15% on a business software subscription are normal taxable supplies. Claim input tax in the usual way if the software is used in your taxable activity and you hold taxable supply information.

Last verified 29 August 2026 against Inland Revenue supplying remote services into New Zealand, GST plus IR546 remote services and reverse charge guidance, claiming GST, charging GST, GST guide IR375, and the Goods and Services Tax Act 1985. Ads may fund this free site. Not Inland Revenue. Not tax advice.