VAT calculator for New Zealand
The standard VAT rate in New Zealand is 15%. To remove it from a gross price you divide by 1.1500, which is not the same as taking 15% off. GST with almost no exemptions, which is why it is often held up as a model.
- VAT to add
- 15.00
- Net price behind a gross one
- 100.00
- VAT inside a gross price
- 15.00
- Line total for the quantity
- 115.00
- VAT fraction of a gross price Multiply a gross figure by this to get the VAT directly.
- 0.130 435
- Gross-up multiplier
- 1.150 000
- How far the subtraction method goes wrong
- 2.25
Show the working
- Price excluding VAT = 100
- VAT rate = 15
- Price including VAT = 115
- Quantity = 1
- VAT to add = 100 * 15 / 100 = 15
- Price including VAT = 100 + 15 = 115
- Line total for the quantity = 115 * 1 = 115
- Net price behind a gross one = 115 / (1 + 15/100) = 100
- VAT inside a gross price = 115 - 100 = 15
- VAT fraction of a gross price = (1 + 15/100) > 0 ? (15/100) / (1 + 15/100) : 0 = 0.130 435
- Gross-up multiplier = 1 + 15/100 = 1.15
- wrong_way = 115 * (1 - 15/100) = 97.75
- How far the subtraction method goes wrong = 100 - 97.75 = 2.25
Values are shown to six significant figures here; the arithmetic itself runs on exact fractions and is only rounded where a number is printed.
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The formula
- gross = net x (1 + rate)
- net = gross / (1 + rate)
- VAT fraction of a gross price = rate / (100 + rate) = 0.130435
The VAT fraction is the shortcut accountants use: at 15% you multiply a gross figure by 0.130435 to get the VAT straight out.
Rates and reduced-rate categories change by legislation. The rate here is a default; check the current one before invoicing.
GST with almost no exemptions, which is why it is often held up as a model.
Frequently asked
What is the VAT rate in New Zealand?
The standard rate is 15%.
How do I remove VAT from a price?
Divide by 1.1500. Subtracting 15% instead undercharges the net figure every time.
Where the numbers come from
- Standard rates as published by the national tax authorities; reduced and zero rates are not modelled.