GST Included Or Not? How To Display Prices In New Zealand

If you’ve ever stared at your website, menu, invoice template or Instagram price list and thought: “Do I need to say GST included or not?” - you’re not alone.

For small businesses, pricing isn’t just a marketing decision. It’s a legal compliance issue too. If you display prices the wrong way, you can accidentally mislead customers (even if you didn’t mean to), create disputes at checkout, or trigger complaints that waste time and money.

This guide breaks down what “GST included or not” means in practice, when it’s best to show GST-inclusive pricing, how the rules tend to play out for B2C vs B2B sales, and how to write prices clearly across websites, quotes, invoices and promotions.

What Does “GST Included Or Not” Actually Mean For Your Business?

In New Zealand, GST (Goods and Services Tax) is generally charged at 15% on most goods and services (with some exceptions and special categories).

When people ask whether GST is included or not, they’re usually trying to figure out:

• Is the displayed price the final price the customer will pay?
• Or will GST be added on top at checkout / invoicing?
• Is the seller GST-registered (and therefore charging GST)?

From a legal and practical point of view, the key issue is clarity. Customers (and other businesses) should not have to guess whether the price includes GST.

If your pricing presentation causes confusion, you can run into issues under consumer protection rules - especially the Fair Trading Act 1986, which prohibits misleading or deceptive conduct in trade (including misleading pricing).

And even where your customers are other businesses (not “consumers”), unclear pricing can still create contract disputes: was the agreed price GST-inclusive, or plus GST?

Do You Have To Display GST-Inclusive Prices In New Zealand?

It depends on who you’re selling to and how you’re advertising the price. In many consumer-facing situations, showing a single, GST-inclusive total is the lowest-risk approach - but the key legal requirement is that your pricing is not misleading and the GST treatment is clear.

When You’re Selling To Consumers (B2C)

If you sell to the general public (think retail, hospitality, online stores, gyms, salons, tradies doing residential work), a common and safer approach is:

• Display prices as GST-inclusive by default (so the sticker/menu price is what people actually pay).
• If you mention GST separately, make it very clear and not confusing.

This aligns with the basic consumer expectation that the advertised price is the total price.

In practice, many consumer-facing businesses treat “GST included” as the default, and only say otherwise in genuine edge cases. If you’re showing “$100” to everyday customers and then adding GST at checkout, you’re much more likely to face complaints or refund disputes (even if your terms say “plus GST”).

When You’re Selling To Other Businesses (B2B)

If you mainly deal with business customers who are GST-registered, it’s common to display:

• Prices excluding GST (e.g. “$1,000 + GST”), because the buyer may claim GST back.
• Or show both figures (e.g. “$1,000 + GST ($1,150 incl. GST)”).

The main point is you need to be consistent and explicit. If your quote says “$1,000” with no wording, you may end up arguing later about whether the agreed price was GST-inclusive.

If You’re Not GST-Registered

If you’re not registered for GST, you generally cannot charge GST on top of your prices.

That means your displayed price is the total price (but it’s not “GST inclusive” in the sense of “includes GST charged by you”). You may still see some small businesses say “GST included” out of habit - but if you’re not GST-registered, it’s better to avoid phrasing that could confuse customers.

If you’re uncertain whether you should register (or what your obligations are once you do), it’s worth getting advice early - pricing mistakes tend to show up later, when it’s painful to correct them.

How To Display Prices Clearly (Websites, Social Media, Menus, Quotes And Invoices)

There isn’t one perfect format for every business - but there are clear “best practice” patterns that reduce legal risk and cut down customer confusion.

1) Websites And Online Stores

For consumer-facing online sales, aim for a price display that makes the final payable amount obvious. Examples that are generally clear:

• $115 (incl. GST)
• $115 GST inclusive
• $115 with a nearby site-wide note: “All prices include GST unless stated otherwise.”

If you sell both to consumers and businesses, you might include a toggle or show both values. Just be careful that the “default” view a typical customer sees isn’t misleading.

Also consider where your legal terms sit in the customer journey. If your pricing is GST-exclusive for any reason, your checkout and your Website Terms And Conditions should match what you’re displaying.

2) Social Media Price Lists (Instagram, Facebook, TikTok)

Social media pricing causes problems because it’s often “quick and casual”, which is exactly how misunderstandings happen.

If you post prices on social media, keep it simple and repetitive:

• Use a consistent label: “incl. GST” or “+ GST”.
• If you’re running a special (“$99 this week”), make sure the GST treatment is clear on the same post or image.
• Avoid tiny fine print that can’t reasonably be read on mobile.

Remember: under the Fair Trading Act 1986, it’s not just what you intended - it’s the overall impression your advertising gives to a reasonable customer.

3) Menus, In-Store Signage And Price Tags

For cafes, restaurants, retail shops and other customer-facing locations, the cleanest approach is:

• Display the GST-inclusive price as the main price.
• If you want to show the GST component (some businesses do for transparency), do it as additional info - not as a surprise extra charge.

Customers should not need to do mental maths at the counter.

4) Quotes And Estimates

Quotes are where “gst included or not” disputes most often show up - especially for project work (marketing services, design, trades, consulting, events, construction and software).

To reduce risk, write quotes like this:

• Option A (GST exclusive): “Total: $5,000 + GST”
• Option B (both shown): “$5,000 + GST ($5,750 incl. GST)”

If you’re dealing with consumers, it’s usually better to give the GST-inclusive total so the customer can budget properly. If you’re dealing with GST-registered businesses, either format can work - but it must be explicit.

It’s also wise to align your pricing language with your contract. If you’re providing services, your Service Agreement should clearly explain whether fees are GST-inclusive or exclusive, and what happens if GST status changes.

5) Invoices

Your invoices should clearly set out:

• The price (or line items)
• The GST amount (if applicable)
• The total payable

Even if your public pricing is GST-inclusive, your invoice still needs to be clear about the GST component if you’re GST-registered (especially because many business customers need it for their own records).

Common Pricing Mistakes Small Businesses Make (And How To Avoid Them)

A lot of pricing issues aren’t caused by “bad behaviour” - they happen because business owners are juggling a hundred things and copying what they’ve seen others do.

Here are some common mistakes we see, and how you can avoid them.

Using “+ GST” In Consumer Advertising

If your target customer is the general public, “+ GST” can be a red flag because it creates a mismatch between the advertised price and the amount they actually pay.

Even if you put “+ GST” somewhere on the page, ask yourself: is it genuinely prominent, or could a customer reasonably miss it?

Hiding GST Details In Terms Only

If your headline price looks GST-inclusive but you rely on your terms to say “prices are exclusive of GST”, you’re setting yourself up for complaints.

Your terms should support your pricing - not fix it after the fact.

Where you’re selling online, it’s a good idea to have both your pricing display and your Website Terms And Conditions working together, so customers aren’t surprised at checkout.

Inconsistent Pricing Across Channels

This one is sneaky. You might have:

• Instagram prices listed “incl. GST”
• A PDF brochure showing “+ GST”
• A website product page showing no GST note at all

That inconsistency creates confusion and increases the chance someone claims they were misled.

A practical fix is to decide on one default approach (often GST-inclusive for consumers) and then apply it across all templates and channels.

Not Updating Pricing Language When You Register For GST

If you start out not GST-registered and later register, you may need to update:

• Your website pricing pages
• Your quote templates
• Your invoices
• Your customer contracts

If you don’t, you can end up in awkward conversations where you’re either undercharging (absorbing GST you didn’t account for) or overcharging (charging GST incorrectly).

This is also where strong contracts help. If your agreement is properly drafted, it can reduce uncertainty when circumstances change.

What Laws Apply To Price Displays In New Zealand?

When we talk about “GST included or not”, there are two main legal angles:

• Tax compliance (are you charging/returning GST correctly?)
• Consumer and trading compliance (are you advertising prices in a way that’s clear and not misleading?)

Fair Trading Act 1986 (Misleading Pricing)

The Fair Trading Act 1986 is the big one for advertising and pricing conduct. In simple terms, it means you must not mislead (or be likely to mislead) customers through the way you present pricing.

This can include:

• Showing one price prominently, but charging another price at checkout
• Failing to clearly disclose that GST is additional (where relevant)
• Advertising a special price in a way that creates a false impression about the total cost

Even if you’re not trying to trick anyone, you can still get it wrong if the overall impression isn’t clear.

Consumer Guarantees Act 1993 (Consumer-Facing Sales)

The Consumer Guarantees Act 1993 is mostly about product and service guarantees (acceptable quality, reasonable care and skill, etc.). While it’s not a “GST law”, it matters because consumer disputes often bundle together: pricing confusion, refund requests, complaints about service, and so on.

If a customer feels misled about price, it can escalate a disagreement quickly - and it’s rarely worth the time and reputational hit.

Your Contract Terms Still Matter (Even With “Simple” Pricing)

Even if you display prices perfectly, you still want your written terms to back you up - especially for custom work, deposits, variations, cancellations, and late payments.

Depending on your business model, that could be covered through:

• A tailored Service Agreement for project-based services
• Strong Business Terms that apply to all jobs and customers
• Clear terms for online sales in your Website Terms And Conditions

Practical Examples: Wording You Can Copy

Sometimes you just need the exact wording. Here are examples that are commonly used and usually clear (but you should still tailor them to your business and audience).

Consumer-Facing Retail Or Online Store

• “All prices are in NZD and include GST.”
• “$59.00 (incl. GST)”

Business-To-Business Services

• “Fees: $2,000 + GST (if any).”
• “Total: $2,000 + GST ($2,300 incl. GST).”

Mixed Audience (Both Consumers And Businesses)

• “Displayed prices include GST unless stated otherwise. Trade accounts may be quoted ex GST.”

The goal isn’t to use fancy wording - it’s to make sure someone skimming the page understands the total cost.

Key Takeaways

• If you’re wondering whether GST is included or not, the main issue is making sure your displayed pricing is clear, consistent, and not misleading.
• For consumer-facing businesses, displaying GST-inclusive prices is often the safest approach because customers commonly expect the advertised price to be the final price.
• For B2B sales, it’s common to show prices excluding GST (e.g. “+ GST”), but you still need to be explicit to avoid disputes over what was agreed.
• Make your GST treatment consistent across your website, social media, menus, quotes and invoices - inconsistent wording is a common source of complaints.
• The Fair Trading Act 1986 is a key law for price displays, and unclear pricing can create real risk even when the mistake is accidental.
• Backing up your pricing with properly drafted terms (like Website Terms And Conditions, Business Terms, or a Service Agreement) can help prevent misunderstandings and payment disputes.

Important: This article is general information only and isn’t tax, accounting or legal advice. GST obligations can depend on your specific circumstances. If you’re unsure about GST registration, charging GST, or invoicing requirements, consider speaking with your accountant or checking guidance from Inland Revenue (IRD).

If you’d like help reviewing how you display prices (including GST wording on your website, quotes, invoices, and customer terms), or you want to put the right legal documents in place from day one, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.