How to Add 15% GST to a Price in New Zealand

How to add 15% GST to a price in New Zealand?

Quick Summary

To add 15% GST to a GST-exclusive price in New Zealand, simply multiply the original amount by 15% (or 0.15) to find the GST amount, then add that to the original price. For example, $100 + ($100 * 0.15) = $115.

Details

Adding GST to Your Prices

When a GST-registered business needs to calculate the GST-inclusive price for goods or services, the process is straightforward.

Here's how to do it:

  1. Identify the GST-exclusive price: This is the base price of your goods or services before GST is added.
  2. Calculate the GST amount: Multiply the GST-exclusive price by the current GST rate, which is 15% (or 0.15 as a decimal).
    • Formula: GST Amount = Price (exclusive of GST) × 0.15
  3. Add the GST amount: Add the calculated GST amount to the original GST-exclusive price.
    • Formula: GST-Inclusive Total = Price (exclusive of GST) + GST Amount

Example:

  • Product price (exclusive of GST): $100
  • GST amount ($100 × 0.15): $15
  • GST-inclusive total: $100 + $15 = $115
Source: GST guide (IR375)