The rule in New Zealand
Unlike Australia, New Zealand has no law that says a price must include GST. What it has is the Fair Trading Act, which makes it illegal to mislead people about price, including by leaving things out. So:
- A price that excludes GST must say so clearly, next to the price, not in the fine print. Businesses have been prosecuted for advertising GST-exclusive prices without making that clear.
- If a quote or advertised price doesn't mention GST, the customer can argue that the figure quoted is what they should pay.
- Fine print can add detail, but it can't contradict the headline price.
Homeowners and other consumers
Quote the total, including GST. It's the number they'll compare, the number they'll pay, and the version nobody can argue with. If you want to show the breakdown, put it underneath: "$2,300.00 including GST of $300.00".
Business customers
"+GST" is normal and expected. GST-registered businesses claim the GST back, so they compare prices without it. Say it on every line, or once in a clear note such as "All prices exclude GST". If the same price list goes on your website where consumers can see it, show the GST-inclusive prices too.
If you're not registered
There's no GST to add or include. Quote the full price and, if it helps, add "Not registered for GST". Writing "+GST" when you can't charge it is the one thing to avoid.
Worked example
The same $2,000 quote, three ways, from a builder who is registered for GST.
| Quote said | Customer | Invoice total | GST in it | Builder keeps |
|---|---|---|---|---|
| "$2,000 incl. GST" | anyone | $2,000.00 | $260.87 | $1,739.13 |
| "$2,000 + GST" | a business | $2,300.00 | $300.00 | $2,000.00 |
| "$2,000" | a homeowner | $2,000.00 | $260.87 | $1,739.13 |
The last row is the expensive one. The homeowner can argue that $2,000 was the price, so the GST comes out of the builder's pocket.
Wording that ends the argument
Put one of these on every quote, and say it out loud when you quote over the phone:
- Registered, quoting a homeowner: "Total $2,300.00 including GST."
- Registered, quoting a business: "All prices exclude GST. GST of 15% ($300.00) applies; total $2,300.00."
- Not registered: "No GST included. This business is not registered for GST."