GST Exclusive vs Inclusive: How to Display and Charge Prices in New Zealand

If you’ve ever stared at your pricing page (or a quote template) and thought, “Do I show this with GST or without?” you’re not alone. Getting GST pricing wrong can frustrate customers, trigger disputes, and in some cases create compliance risk under New Zealand consumer law.

The tricky part is that there isn’t one single “always do this” rule. Whether you should display prices as GST inclusive or GST exclusive depends on who you’re selling to, where the price appears (ads, website, quotes, invoices), and how clearly you explain GST.

In this guide, we’ll break down the rules and best practices around GST exclusive vs inclusive prices in New Zealand, with practical examples for small businesses.

What Does “GST Inclusive” And “GST Exclusive” Actually Mean?

Before you lock in your pricing approach, it helps to get the language straight.

GST Inclusive Pricing

A price is GST inclusive when the amount shown already includes GST. For example:

• $115 (incl GST) means the customer pays $115 total, and GST is included in that amount.

This is often what everyday consumers expect because it matches what they’ll pay at checkout.

GST Exclusive Pricing

A price is GST exclusive when GST is not included in the amount shown. For example:

• $100 + GST means the customer will pay $115 total (if GST applies at 15%).

GST exclusive pricing is common in B2B settings where customers can often claim back GST (if they’re GST-registered and the purchase is claimable).

Why This Matters (More Than People Think)

Pricing is more than a “numbers” issue. In New Zealand, the way you advertise and present prices can raise issues under the Fair Trading Act 1986, especially if the pricing is unclear or likely to mislead.

It’s not just about whether GST is technically added later - it’s about whether your customer can easily understand what they’ll actually have to pay.

When Should You Display GST Inclusive Prices In New Zealand?

For many small businesses, a sensible default is: if you’re selling to the general public, GST-inclusive pricing is often the clearest approach.

Consumer-Facing Pricing Is Where You Need To Be Most Careful

If your marketing is aimed at everyday consumers (rather than trade customers), displaying GST exclusive prices can create real risk because consumers typically assume the advertised price is the final price.

Even where a business intends to add GST later, the question becomes: would a normal customer be misled about the real cost?

This is why many businesses choose to display:

• product and service prices inclusive of GST, and
• clearly state “including GST” (or similar wording) near the price.

If you’re advertising discounts or “from $X” deals, you’ll also want to ensure the GST treatment doesn’t undermine the offer (for example, a customer thinking the deal is $1,000 when it’s actually $1,150).

As a practical step, it can help to align your advertised price practices with consumer law expectations around advertised pricing and transparency, especially in online and promotional material.

For example, if you run sales promos or publish pricing comparisons, it’s worth staying consistent with principles discussed in advertised price compliance.

If You’re Not GST-Registered, Don’t “Add GST”

Another common issue: some businesses say “+ GST” out of habit, even when they’re not GST-registered.

If you’re not registered for GST, you generally shouldn’t charge GST at all. That means your advertised price should be the price the customer pays (subject to any shipping or other clearly disclosed fees).

If you’re close to the GST registration threshold or unsure about registration obligations, it’s worth getting tailored advice from an accountant or tax adviser, because your pricing, invoicing, and contracts should all match your tax position.

When Is GST Exclusive Pricing OK (And How Do You Do It Safely)?

GST exclusive pricing can absolutely be appropriate in New Zealand - particularly in B2B settings - but you need to be intentional and clear.

B2B Pricing Often Uses “+ GST”

If you mainly sell to other businesses (for example, you provide professional services, wholesale goods, trade services, or software subscriptions to companies), it’s common to show:

• $X + GST, or
• $X ex GST.

The key is making sure the GST position is obvious and not buried in tiny footer text.

Use Clear Wording Everywhere The Price Appears

Problems often happen when you’re consistent in one place (say, your invoice) but inconsistent elsewhere (like your website).

For example, if your pricing page says “$99/month” with no GST note, and your checkout later adds GST, customers may feel misled - even if your terms mention GST somewhere else.

A safer approach is to always label the price clearly, such as:

• “$99/month + GST”
• “$99/month excl GST”
• “$113.85/month incl GST”

Be Extra Careful With Mixed Audiences

Many small businesses sell to both:

• consumers (B2C), and
• business customers (B2B).

If that’s you, a common approach is to show GST inclusive prices by default and, where helpful, show the ex GST figure secondarily (for example “$115 incl GST ($100 ex GST)”).

This reduces friction for consumers while still giving business buyers the information they want.

Quotes, Invoices, And Contracts: How To Avoid Pricing Disputes

Even if your advertising is perfect, disputes can still happen if your quote, invoice, or contract doesn’t match what the customer thought they agreed to.

Quotes: Spell Out Whether GST Is Included

Your quote is often where your customer decides to buy - and where pricing misunderstandings start.

At a minimum, your quotes should clearly state:

• the quoted amount
• whether it is incl GST or + GST
• what is included in the scope (and what isn’t)
• any extra costs (delivery, travel, materials, after-hours rates)
• the quote expiry date

If your quote is accepted, it may become enforceable as part of your agreement - so clarity really matters. This is especially relevant where the customer later argues they thought GST was already included. You’ll often see this come up when businesses rely on informal emails or short PDF quotes.

It’s also worth remembering that, in many situations, a quote can create legal obligations once accepted. If you want to sanity-check that risk in your process, quotation legally binding is a useful concept to understand.

Invoices: Include The Right GST Information

If you’re GST-registered, your invoices should include the right GST information (so it’s clear what GST has been charged, and so GST-registered customers can claim correctly if they’re entitled to). In practice, many businesses show:

• the amount excluding GST
• GST charged
• the total including GST

Keep in mind that Inland Revenue’s requirements have changed over time, and invoices are often described in terms of providing “taxable supply information” rather than issuing a specific “tax invoice” format. If you’re unsure what you need to show for your particular transactions, it’s worth checking Inland Revenue guidance or speaking with an accountant or tax adviser.

Contracts And Terms: Make GST Treatment A Clear Clause

Your pricing approach should also be backed up in writing in your customer terms or contract. That way, if there’s a disagreement, you’re not relying on memory or “what we usually do”.

Common ways businesses document GST treatment include:

• “All prices are inclusive of GST unless stated otherwise.”
• “All prices are exclusive of GST. GST will be added to the invoice at the prevailing rate.”

This kind of clause is often included in Terms of Trade or a broader set of customer terms.

If you provide ongoing services (like marketing, consulting, IT support, or regular maintenance), it can also make sense to capture pricing and GST in a proper Service Agreement so your scope, payment terms, and tax treatment stay consistent as the relationship evolves.

Online Stores, Subscriptions, And “Hidden Fees”: Getting GST Right On Your Website

If you sell online, the way you display price matters even more - because customers make quick decisions based on what they see on-screen, and they’ll abandon checkout fast if the final price changes unexpectedly.

Make The Total Price Obvious Before Checkout

A common pain point is when customers see one price on a product page, but the cart/checkout adds GST later (without warning). Even if you technically disclosed GST somewhere, that experience can lead to complaints and chargebacks.

Better practice is to ensure:

• product listings clearly state “incl GST” (or “+ GST” where appropriate)
• the cart clearly shows a GST breakdown (if you want to show one)
• the final payable amount is obvious before payment is taken

Make Sure Your Website Terms Match Your Pricing Display

If your website terms say “all prices are inclusive of GST” but your product pages show “+ GST”, that mismatch can create confusion and weaken your position in a dispute.

For ecommerce businesses, it’s common to set this out in E-Commerce Terms and Conditions so your GST treatment, delivery fees, refunds, and order process are all in one place.

If You Collect Customer Data, Don’t Forget Privacy

Pricing and checkout design often goes hand-in-hand with data collection (names, emails, phone numbers, delivery addresses, payment details through a provider, and sometimes marketing preferences).

If you’re collecting personal information through a website, you’ll usually want a Privacy Policy that matches what you’re actually doing in practice. This isn’t a GST rule, but it’s one of those “legal foundations” that’s easy to miss when you’re focused on pricing and sales.

Key Takeaways

• GST inclusive vs exclusive pricing is context-dependent - what works for B2B may not be appropriate for consumer advertising.
• For consumer-facing pricing, GST-inclusive pricing is often the clearest option because consumers typically expect the advertised price to be the final price.
• If you use GST exclusive pricing, label it clearly (“+ GST” or “excl GST”) wherever the price appears, not just in the fine print.
• Keep your quotes, invoices, website pricing, and contracts consistent so customers aren’t surprised later (and you’re protected if there’s a dispute).
• Quotes and pricing emails can become binding in practice, so make sure GST treatment is clearly stated from the start.
• Back up your pricing approach in writing using customer terms (like Terms of Trade) or a Service Agreement so your GST position is clear “from day one”.
• Online businesses should avoid surprise price increases at checkout by making the GST treatment and final payable amount clear before the customer pays.

Important: This article is general information only and isn’t tax or accounting advice. GST can get technical quickly, so consider speaking with an accountant or tax adviser for advice on your specific situation.

If you’d like help tightening up your pricing terms, customer contracts, or ecommerce setup (so your pricing approach is clear and aligned with your legal documents), you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.