GST on Shopify in New Zealand: The Complete Setup Guide

GST mistakes on a Shopify store are rarely dramatic. They are quiet: prices that jump at checkout, export orders taxed 15% they should not carry, or a Xero feed where every order lands with the wrong tax rate and someone spends a weekend fixing a GST return. All of it is avoidable with a correct setup, which takes about an hour.

This guide assumes you are a New Zealand business selling on Shopify. It is practical configuration guidance, not tax advice; for edge cases, your accountant is the authority.

Step 0: Do you need to register?

GST registration is compulsory once your turnover exceeds $60,000 NZD in any 12-month period, and optional below that. Registering early can make sense if you buy significant stock or services with GST on them and want to claim it back. Once registered, you charge 15% on all taxable supplies to NZ customers, and you file returns monthly, two-monthly, or six-monthly depending on your size and preference.

Step 1: Tax-inclusive pricing (the NZ convention)

New Zealand shoppers expect the price on the product page to be the final price. In Shopify: Settings, then Taxes and duties, then enable "Include tax in prices." A product priced at $115 is then treated internally as $100 plus $15 GST, and the checkout shows no surprise additions.

Two cases where GST-exclusive display is correct instead:

• B2B and wholesale stores, where trade buyers think in exclusive prices and claim the GST back anyway. If you run wholesale pricing through an app like our own Miko B2B Wholesale Pricing, decide the display convention before you load prices, not after.
• Mixed B2B and retail stores, where Shopify can display both inclusive and exclusive prices depending on configuration and market settings.

Step 2: The 15% rate on NZ orders

In Settings, then Taxes and duties, then New Zealand, Shopify applies the standard 15% GST rate for deliveries to NZ addresses. Verify it rather than assume it: place a test order to an Auckland address and check the tax line is exactly 15% of the GST-exclusive subtotal.

Also enable "Charge tax on shipping rates." For domestic orders, delivery you charge the customer is part of the taxable supply and carries GST. Miss this and every order under-collects by the GST on its shipping.

Step 3: Exports are zero-rated, and Shopify handles it if you let it

Orders shipped from New Zealand to an overseas address are zero-rated: 0% GST, not "no tax line." With tax regions configured correctly, Shopify applies 15% to NZ delivery addresses and nothing elsewhere, automatically, per order. Do not create manual workarounds like duplicate products or separate export collections; they break reporting and are never needed.

Keep evidence that export orders actually left the country (courier tracking is fine). Zero-rating depends on it, and it is the first thing checked if a return is ever queried.

Step 4: Invoices under the taxable supply information rules

Since 2023, the old "tax invoice" wording has been replaced by taxable supply information. For sales over $200 you must be able to provide the required details, including your GST number, and Shopify's default order confirmation does not include it. Options, from lightest to most robust:

• Add your GST number and business details to the order confirmation email template.
• Use an invoicing app that generates compliant PDF invoices per order.
• Connect Shopify to Xero and let your accounting system be the source of truth. This is what most established NZ merchants do, and what we recommend once you are past a handful of orders a week.

Step 5: Get the Xero (or ERP) mapping right

The Shopify order data is only as useful as the tax mapping on the other end. When we wire Shopify into Odoo or Xero for NZ merchants, the GST checklist is always the same: domestic sales map to 15% GST on income, zero-rated exports map to zero-rated income (not exempt, they are different boxes on the return), and shipping income follows the same split. Then we place three test orders, domestic, export, and discounted, and trace each one through to the draft GST return before going live.

Selling INTO New Zealand from overseas? Different rules

One paragraph for the reverse case, because it comes up constantly: overseas sellers shipping low-value goods (under $1,000 NZD) to NZ consumers must register for and charge NZ GST once their NZ sales exceed $60,000 NZD in 12 months. Shopify supports this with tax registration settings for New Zealand. If you are an Australian or US brand with growing NZ sales, this threshold is worth watching before IRD watches it for you.

The one-hour checklist

• GST registered (compulsory over $60,000 NZD turnover), number on file
• "Include tax in prices" matches how your catalogue prices were loaded
• 15% applying on a test order to a NZ address
• "Charge tax on shipping rates" enabled
• Test export order shows zero GST
• GST number appears on order paperwork, or Xero generates compliant invoices
• Accounting feed maps domestic, export, and shipping lines to the correct GST rates

Tripster Developers is a GST-registered, Auckland-based Shopify agency. Tax configuration, Xero and ERP integration, and NZ payment and shipping setup are part of every New Zealand store we deliver. If your GST setup has never been verified with test orders, get in touch and we will check it properly.