What Does “Ex GST” Mean? Pricing, Quotes And Invoices In New Zealand

If you run a small business in New Zealand, you’ll see “ex GST” everywhere - supplier catalogues, wholesale price lists, quotes, invoices, and even on your own website if you sell to other businesses.

But the meaning matters. If you misunderstand “ex GST” (or use it inconsistently), you can accidentally undercharge, confuse customers, or end up in disputes about what was actually agreed.

In this guide, we’ll break down what “ex GST” means in plain English, show you how it works in real pricing examples, and explain how to quote and invoice clearly in NZ so you’re protected from day one.

What Does “Ex GST” Mean In New Zealand?

“Ex GST” means “excluding GST”.

So if a price is stated “ex GST”, it’s the amount before GST is added. In New Zealand, GST is generally 15%. That means the final amount payable is usually higher than the ex GST price.

Ex GST Meaning (In One Line)

Ex GST = the base price, before GST is added.

How Is “Ex GST” Different From “Inc GST”?

• Ex GST: the listed price does not include GST (you add GST on top if applicable).
• Inc GST: the listed price already includes GST (GST is “inside” the total).

This distinction is especially important when you’re dealing with:

• wholesale suppliers and B2B pricing lists
• quotes for services (trades, consultants, agencies, construction)
• online stores that sell to both consumers and businesses
• project-based work where scope changes and variations occur

Do You Always Add GST On Top Of An Ex GST Price?

Not always. Whether you charge GST depends on whether you’re GST-registered and whether the supply is taxable in NZ.

Most small businesses will face one of these scenarios:

• You are GST-registered: you generally charge GST on taxable supplies, and you must account for it to Inland Revenue.
• You are not GST-registered: you generally cannot charge GST (and you should be careful not to represent that you are).

Note: This article is general information only and isn’t tax advice. If you’re unsure whether GST applies to what you sell, or whether you should register, it’s best to speak with an accountant or tax adviser.

How To Calculate GST From An Ex GST Price (With Simple Examples)

Once you understand what “ex GST” means, the next step is being able to convert it quickly (especially when you’re quoting over email or on the phone).

Formula: Ex GST To Inc GST

• GST amount = Ex GST price × 0.15
• Inc GST price = Ex GST price × 1.15

Example 1: $100 Ex GST

• Ex GST price: $100
• GST (15%): $15
• Total (inc GST): $115

Example 2: $1,250 Ex GST Quote

• Ex GST price: $1,250
• GST (15%): $187.50
• Total (inc GST): $1,437.50

Formula: Inc GST Back To Ex GST

Sometimes you’re given a total price and you want to know the ex GST amount (for bookkeeping or margin calculations).

• Ex GST price = Inc GST price ÷ 1.15

Example: if the total is $115 inc GST, the ex GST component is $115 ÷ 1.15 = $100.

A Quick Note On Rounding

In practice, rounding can matter (especially with high volumes of small transactions). If you’re putting prices on a website or issuing invoices, choose a consistent rounding approach and stick with it. Consistency reduces customer confusion and makes your accounting cleaner.

How To Price Your Products Or Services When GST Applies

Pricing is more than just a math exercise. The real risk for small businesses is setting prices that look profitable “ex GST” but don’t work once GST, costs, and overheads are taken into account.

A practical approach is to decide whether your business prices should be built around:

• your margin ex GST (common for B2B pricing and supplier-style pricing), or
• your customer-facing total inc GST (common for consumer-facing pricing).

If You Mainly Sell To Consumers (B2C)

If you’re advertising to the general public, you’ll usually want to display prices including GST. That’s what customers expect, and it reduces friction at checkout.

From a legal perspective, you also want to be careful about how you represent pricing. The Fair Trading Act 1986 generally requires pricing not to be misleading. If the headline price looks like the final price but GST gets added later, that can create problems (and upset customers).

If you sell online, your overall website terms and pricing practices should line up with your Website Terms And Conditions, especially around payment, cancellations, and how totals are calculated.

If You Mainly Sell To Businesses (B2B)

In B2B, it’s common to list prices ex GST because the buyer might be GST-registered and can claim GST back (subject to usual tax rules).

That said, “common” doesn’t mean “risk-free”. You still need to be crystal clear on quotes and invoices about whether GST is included, because a misunderstanding can easily turn into a payment dispute.

Don’t Let “Ex GST” Accidentally Shrink Your Margins

One common trap is pricing something at (say) $1,000 ex GST because it “feels” like a four-figure job, but forgetting that customers will see $1,150 inc GST - which can affect how competitive you look.

The opposite trap also happens: you advertise “$1,000” meaning $1,000 inc GST, but then your internal numbers were based on $1,000 ex GST. That’s a direct hit to your margin.

If you want your pricing to scale as you grow, it helps to set internal pricing rules early and document them in your quoting and invoicing process.

How To Write Quotes In NZ That Clearly Handle GST

Quotes are where GST confusion often starts. You might have had the experience where the customer says, “I thought that price included GST,” while you assumed “ex GST” was obvious.

Even if you’re right, that kind of dispute costs you time, goodwill, and cashflow.

What Should A Good Quote Include?

A practical NZ small business quote typically includes:

• a clear description of what you’re supplying (products/services)
• the price ex GST and the GST amount (if you’re charging GST)
• the total inc GST
• any assumptions, exclusions, or limits (scope boundaries)
• timeframes (delivery or completion estimates)
• payment terms (deposit, progress payments, due dates)
• validity period (e.g. quote valid for 14 days)

Example Quote Wording (Clear And Simple)

You don’t need fancy language. You do need clarity. For example:

• “Price: $2,000 + GST (15%). Total: $2,300 (inc GST).”
• “All prices are stated in NZD and are exclusive of GST unless otherwise specified.”

If you use a “quote acceptance” process (email approval, online acceptance button, signed acceptance), make sure your terms are presented at the point of acceptance. This is where clear business Business Terms can help - not just for GST clarity, but also for variations, late payments, and liability management.

Be Careful With “Estimates” And Scope Changes

If your quote is really an estimate (because the scope might change), say so. If you do project work, it’s also smart to state how variations will be priced and whether variation prices are ex GST or inc GST.

This is one of those “set the rules before things get stressful” steps that can save you a lot of headaches later.

How To Invoice Properly When You’re Charging GST

Once the work is done (or a milestone is reached), the invoice is what you rely on to get paid. If your invoice doesn’t clearly set out GST, you can end up with delays, questions, or the customer refusing to pay the extra 15%.

Also, if you are GST-registered, invoicing is part of your tax compliance. You want your records to support what you’re reporting to Inland Revenue.

What Should A GST Invoice Include In Practice?

Inland Revenue’s rules are generally framed around providing the right taxable supply information (and the required information can vary depending on the type and value of the supply). As a general guide, if you’re charging GST, your invoice should clearly show:

• your business name (and trading name, if applicable)
• your contact details
• the customer’s details (commonly included, especially for B2B)
• the invoice date and a unique invoice number
• a description of what you supplied
• the amount payable (and whether amounts are ex GST or inc GST)
• the GST amount (or a statement that GST is included, if you show only the total)
• payment due date and payment instructions

Note: This is general information only. For up-to-date requirements for your situation, it’s best to check Inland Revenue guidance or speak with your accountant or tax adviser.

If you’re in a service-based business, it’s also worth making sure your invoicing approach lines up with your Service Agreement (for example, when invoices are issued, whether deposits are refundable, and what happens if a customer pauses the project).

Should You Show Ex GST And Inc GST On The Invoice?

Showing both is often the clearest approach, especially for B2B customers:

• Subtotal (ex GST)
• GST (15%)
• Total (inc GST)

It reduces “surprise” and makes the GST component explicit.

What If You’re Not GST-Registered?

If you’re not GST-registered, you generally shouldn’t be using wording that implies GST is being charged (like “+ GST” or “GST included”). Instead, you can simply state:

• “Price: $___ (GST not applicable).”

If this is relevant to your business, it’s worth getting advice so your pricing and documentation match your actual tax position.

Common “Ex GST” Mistakes (And How To Avoid Them)

Most ex GST issues aren’t caused by bad intentions - they’re caused by rushed quoting, template invoices, or inconsistent website pricing.

Here are some common mistakes we see small businesses run into, and how you can avoid them.

Mistake 1: Advertising A Price Without Saying Whether GST Applies

If a customer reasonably thinks the displayed price is the final price, but you add GST later, you can create disputes and potential legal risk under the Fair Trading Act 1986 (because the price presentation may be misleading).

Fix: Make your pricing labels consistent:

• Consumer-facing: show “inc GST” wherever possible.
• B2B-facing: if you show “ex GST”, make it prominent and repeat it at checkout/acceptance.

Mistake 2: Quoting Ex GST, Then Invoicing Inc GST (Without Warning)

If your quote was $5,000 and didn’t clearly state “ex GST”, and your invoice arrives at $5,750, the customer may push back - even if you assumed they understood.

Fix: On your quote, spell it out as “$5,000 + GST (15%)” and show the total.

Mistake 3: Using A Trading Name But Not Being Clear Who The Supplier Is

Sometimes small businesses quote under a trading name, invoice under a different legal entity name, and the customer gets confused about who they’re paying (or who is responsible if something goes wrong).

Fix: Keep your documentation consistent and make sure your terms and invoices align with your business structure. If you’re setting up or changing your structure, having it properly documented (including a Company Set Up if you’re incorporating) can help keep things clean from the start.

Mistake 4: Not Having Clear Payment Terms Or Late Payment Consequences

GST confusion often shows up alongside other invoicing issues, like unclear due dates or disputes about what was included.

Fix: Use consistent payment terms across your quotes, invoices, and contracts.

Mistake 5: Taking Online Payments Without Matching Policies

If customers pay online and later dispute the amount (for example, because GST was added at checkout), your written terms become very important. Your customer-facing terms should match what the customer actually sees and pays.

Fix: Make sure your website and checkout pricing aligns with your legal documents, including a clear set of E-Commerce Terms And Conditions.

Key Takeaways

• “Ex GST” means the stated price does not include GST, and GST (usually 15% in NZ) may be added on top if applicable.
• If you’re GST-registered, you generally need to show GST clearly on quotes and invoices and ensure you’re charging it correctly on taxable supplies (get tax advice if you’re unsure).
• If you sell to consumers, it’s usually safer (and clearer) to advertise prices inclusive of GST to avoid misunderstandings and potential issues under the Fair Trading Act 1986.
• Quotes should clearly state the price ex GST, the GST amount, and the total inc GST, along with key scope and payment terms to reduce disputes.
• Invoices should match your quote and contract terms, and should set out GST clearly so customers know exactly what they’re paying for.
• Consistency is everything - use the same GST language across your website, quotes, invoices, and terms so your pricing isn’t misleading or confusing.
• If your pricing, terms, or structure are changing as you grow, getting tailored legal advice early can help you stay compliant and protected from day one.

If you’d like help reviewing your customer terms, service agreements, or the way your business quotes and invoices (so your pricing is clear and enforceable), you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.