How is VAT in New Zealand Calculated?
To calculate the VAT in New Zealand, you will need to:
- First, take the total price in $
- Then, divide that by 100 (%) and multiply by 15 (if using the default New Zealand VAT rate %, or use another number if the rate is different)
- Lastly, the price minus or plus (based on if you want to add or deduct the VAT) the number above is equal to the final price
In the article below are more in-depth explanations and examples for each case. You can also check a full-length article where New Zealand VAT is explained in detail.
How to Add VAT in New Zealand?
If you want to add the VAT use this formula: $price + (($price / 100%) * 15%) = VAT-added $price.
For example, if the price before VAT is $1,200, and the VAT rate is 15%, we do as follows:
- $1,200 / 100% = $12
- $12 x 15% = $180
- $1,200 + $180 = $1,380
In the example above, after adding the 15% VAT, the final VAT-added price equals $1,380. If you want to see an example of deducting VAT, see the example below.
How to Deduct VAT in New Zealand?
So, if you want to remove the VAT, the price after VAT is $1,200, and the VAT rate is 15%, we do as follows:
- $1,200 / 100% = $12
- $12 x 15% = $180
- $1,200 - $180 = $1,020
The $1,020 in the example above is the VAT-deducted price after removing 15% VAT.
What is the VAT rate in NZ?
As of 2023, the VAT rate in the NZ is 15%.
We think these three links are helpful and related to the VAT Calculator NZ: Consumption Tax Trends, VAT (GST) Rates in New Zealand, and Goods and Services Tax (New Zealand).
