Property & Assets GST Hub: Land, Cars and Change of use

Property & Assets GST Hub is our New Zealand guide to GST on the things you buy, lease, rent out or sell: land, buildings, vehicles, home offices, mixed use assets, insurance payouts and second hand goods. The rate is still 15%, but the answer changes fast when use is private, exempt or shared.

This page is for the 2026/27 tax year (1 April 2026 to 31 March 2027). Inland Revenue (IRD) rules below are the map. The posts listed under this category go deeper on each asset type. It is not a substitute for advice on complex property deals.

Claiming GST only for taxable use

On IRD’s claiming GST page, you claim input tax to the extent goods and services are used in your taxable activity. You cannot claim for private use or for making exempt supplies. Hold taxable supply information for purchases that need it.

For items over $10,000 GST exclusive, IRD expects a fair percentage claim up front, then monitoring if use changes. For goods and services of $10,000 or less, you can use the principal purpose method: claim all or nothing based on whether the main purpose is taxable supplies, or keep apportioning if you prefer.

IRD’s GST adjustments page names the everyday mixed cases: a home office (often by floor area) and a vehicle (often by logbook kilometres). Practical walkthroughs: claiming GST on a car or home office and GST on motor vehicles. Day to day maths: free GST calculator.

Change in use and adjustment periods

If actual taxable use later differs from what you claimed, you may need a change in use adjustment. IRD’s change in use adjustments page sets out when an adjustment is not required, including where GST exclusive cost is $10,000 or less, or where the adjustment is under $1,000 and the change in taxable use is under 10%.

There are also wash up and final disposal adjustments in the same IRD guidance. Property developers have a special cap on the final adjustment. Guides: GST change of business use, GST on mixed use assets, and GST asset removal.

Residential rent vs short stay

IRD’s GST and renting out residential property page is blunt: there is no GST on long term residential rent, and you cannot claim GST on those landlord costs. That is an exempt supply.

Short stay accommodation is different. It is generally a taxable activity. From 1 April 2024, online marketplaces collect GST on many listed short stay bookings. Landlord guide: GST on residential rent in NZ. Hosts: Airbnb and short term rentals under industry specific GST.

Commercial property and compulsory zero rating of land

Commercial buildings and land used in a taxable activity sit in a different box from exempt residential rent. On IRD’s zero rated supplies page, a land transaction must be zero rated when made by a GST registered person if the supply wholly or partly includes land, it is made to another registered person, the recipient intends to use the goods for making taxable supplies, and it is not intended as a principal place of residence for the recipient or a relative. All those conditions must hold at settlement. If any fail, the supply is taxed at 15%.

Leases for dwellings and most commercial leases are excluded from that land definition. Tax Technical statement IS 17/08 is the detailed CZR guide. Practical pages: commercial property GST guide, GST on property sales NZ, and GST for property developers and investors. Agents: GST for real estate agents.

Buying vs leasing assets

Buying (including many hire purchase and finance lease style deals) can let you claim GST on the cash price earlier, subject to your accounting basis and taxable use. An operating lease is usually claimed payment by payment as you are charged. Finance charges on loans are generally exempt financial services, which is why the split between cash price and finance matters. Compare the paths in buying vs leasing assets in NZ and hire purchase and leases. Accounting basis choice: invoice basis vs payments basis.

Second hand goods credits

IRD’s special supplies page covers secondhand goods. If you buy from an unregistered seller, they will not charge GST. In some cases a GST registered buyer can still claim a secondhand goods credit. Land can be a secondhand good. You must make a payment before you claim, regardless of your normal accounting basis, and keep the records IRD requires.

Tax Technical statement IS 25/22 is the current detailed statement. Practical guide: GST on second hand goods NZ.

Insurance payouts on business assets

If you are GST registered (or required to be) and receive an insurance payment relating to your taxable activity, IRD’s other GST debit adjustments page says you must include the GST content as an adjustment in your return. The same idea appears on IRD’s business damages, losses and insurance guidance. Walkthrough: GST on insurance claims NZ.

Family court and relationship property transfers

Moving assets under a relationship property settlement is not the same as an ordinary sale. Whether GST applies depends on registration, taxable activity, and whether a special rule treats the transfer as a supply. Keep documents and get advice before you file. Sector note: GST on family court settlements. Related legal settlement rules sit under advanced GST rules in GST on legal settlements and awards.

Where related topics sit

Registration and filing first: GST Basics Guide and GST Guide NZ. Expense claims such as entertainment and bad debts: business and expenses GST. Employer use of a company vehicle can trigger fringe benefit tax: FBT calculator.

Invoices for asset sales: GST invoice generator. Late returns: late GST penalty calculator. Importing plant or stock: GST on imports calculator.

What this Property & Assets GST Hub page is checked against

Last full check: 25 August 2026. Claiming and apportionment, change in use thresholds and period counts, residential rent exemption, compulsory zero rating of land, secondhand goods, and insurance debit adjustments were matched to ird.govt.nz/gst, IRD claiming GST, change in use adjustments, special supplies, zero rated supplies, renting residential property, other GST debit adjustments, and GST guide IR375. GSTCalc.nz is a free New Zealand publisher of tax calculators and guides. Ads may fund the site. We are not Inland Revenue and this is not tax advice. Figures are working papers.

Publisher details: About us and Contact. Privacy: Privacy policy. The articles listed below this description are the detailed Property & Assets GST Hub posts.