GST on Truck Accessories in New Zealand: A General Guide for Online Sellers

What the tax does to your price

GST changes the amount a customer pays, but it is not the same as your store’s revenue. Inland Revenue (Te Tari Taake) states that GST in New Zealand is charged at a rate of 15% (GST). For a truck-accessories seller, the GST component is collected from the customer and reported to Inland Revenue. It should not be treated as money available to cover product cost, advertising, wages or owner drawings (Source: Inland Revenue (Te Tari Taake)).

That distinction matters when you assess a product. A bull bar, canopy or roof rack may generate a substantial customer payment, while the underlying sale revenue is the amount attributable to the goods or service before GST. Gross profit then depends on that underlying revenue less the product cost; gross margin is gross profit expressed against revenue. GST does not improve either measure. If you judge performance using the full customer payment, a GST component can make sales and margins appear larger than they really are.

Inclusive and exclusive prices

An exclusive price is the amount before GST. An inclusive price is the amount the customer pays, with GST already included. For a GST-registered truck accessories store, choose one basis for your price list, Shopify catalogue and internal margin calculations, then label it clearly. Inland Revenue (Te Tari Taake) states that New Zealand GST is charged at 15% (Source: Inland Revenue (Te Tari Taake)).

If a bull bar is priced at $1,000 exclusive, GST is $150 and the customer-facing price is $1,150 inclusive. To reverse the calculation, divide an inclusive price by 1.15: $1,150 ÷ 1.15 = $1,000 exclusive, leaving $150 GST. Do not subtract 15% from an inclusive price; $1,150 × 0.85 gives $977.50, which is the wrong result.

The right measure depends on the decision. Use the inclusive price when checking what a New Zealand consumer will see and pay. Use the exclusive price when comparing supplier costs, setting a trade price, or testing whether a product’s margin works consistently across GST calculations.

• Exclusive to inclusive: exclusive price × 1.15.
• Inclusive to exclusive: inclusive price ÷ 1.15.

Records worth keeping

Keep records that let you trace every GST figure back to an order, supplier document or payment. For sales, retain invoices and receipts showing the order date, products, freight, discounts, customer details where collected, total charged and GST treatment. Link each refund, return, credit or cancellation to the original order rather than recording it as an unexplained adjustment.

For purchases, keep supplier invoices for truck accessories, fitting materials, packaging, freight, software and advertising. Import purchases need their customs and shipping documentation, including any GST charged at import. A bank or card statement proves that money moved, but it does not by itself explain what was bought or whether the amount is a business expense. Keep both the transaction record and the supporting document.

Payment-provider and marketplace reports are useful for reconciling deposits after fees, refunds and chargebacks. Reconcile them to Shopify orders and your bank account so a payout is not mistaken for sales. Keep inventory records as well: product SKU, units received, units sold or returned, supplier cost and remaining stock. These records support margin and stock analysis, but they do not replace sales or purchase documentation for GST.

• Sales invoices and receipts: support GST charged on customer orders.
• Supplier and import documents: support GST paid on purchases and imported stock.
• Credit notes, refund records and chargebacks: support adjustments to sales.
• Bank, card, payment-provider and marketplace reports: reconcile cash movement to transactions.
• Inventory and landed-cost records: explain product margin and stock value, but are not substitutes for tax documents.

When to ask an adviser

Ask a tax adviser before you make a registration decision, particularly if your sales are approaching the threshold or your store has several sales channels. Inland Revenue (Te Tari Taake) says a business must register for GST if its turnover was at least $60,000 in the last 12 months or is expected to reach $60,000 in the next 12 months. An adviser can assess how that rule applies to your actual business, including irregular sales, related entities and planned growth (Source: Inland Revenue (Te Tari Taake)).

Get advice when you sell truck accessories to overseas customers, import stock, or use an overseas marketplace. Inland Revenue (Te Tari Taake) says a low-value good is a physical good valued at NZ$1,000 or less, excluding GST; overseas merchants, online marketplaces and redeliverers selling these goods to New Zealand consumers may need to register and collect GST. The correct treatment can depend on who sells the item, who imports it and how the transaction is structured (Source: Inland Revenue (Te Tari Taake)).

An adviser is also appropriate for unusual or high-value transactions: a business sale, asset purchase, damaged or returned stock, promotional bundles, finance arrangements, or a correction to a previous GST return. Ask before filing if you are uncertain about whether a transaction is taxable, how a cost should be apportioned, or whether a past treatment needs correcting. Keep the adviser’s conclusion with the relevant transaction documents so the decision can be revisited.

Use profitability reporting for a different decision. ORVX connects to Shopify, calculates realised revenue from delivered orders, applies your product cost model, and reports gross profit, net profit and margins. It can show how returns affect revenue and which products or collections produce contribution after advertising. That helps you decide where the commercial issue sits; it does not determine your GST treatment or file a return. For a tax position, ask a qualified adviser or contact Inland Revenue. For the commercial effect, compare the result with your store’s own numbers in ORVX’s New Zealand resources or use the product pricing calculator.

Registration and GST returns are separate decisions

GST registration and GST return settings are separate decisions. Inland Revenue (Te Tari Taake) says a business must register if its turnover was at least NZ$60,000 in the last 12 months or is expected to reach NZ$60,000 in the next 12 months. A truck accessories seller below that threshold can also register voluntarily, which may suit a store with substantial GST-bearing stock, freight, software or advertising costs. Registration creates the obligation to charge GST and file returns; it does not, by itself, determine how often returns are filed.

You select a taxable period, commonly monthly, two-monthly or six-monthly, and file and pay by the due date for that period. Each return compares output GST on taxable sales with input GST on eligible business purchases. For illustration only, NZ$10,000 of taxable sales at 15% creates NZ$1,500 output GST. If eligible purchases include NZ$600 of input GST, the net amount payable is NZ$900. If input GST exceeds output GST, the difference may be refundable, subject to Inland Revenue’s rules.