How GST works for sole traders.
GST is a tax on consumption. If you are in the system, you collect it on sales and claim it on business purchases — then square up with IRD.
Are you in the GST system?
GST is 15% on most goods and services in New Zealand. If you are registered, you collect GST on sales, claim GST on eligible business purchases, and file returns with IRD.
Many sole traders register when turnover crosses the threshold IRD publishes. Read ird.govt.nz/gst for the current number and rules — we do not quote thresholds here because they move.
On the invoice
Show GST as its own line, or state that prices include GST and split it on the total. Mixed quotes confuse customers; pick one style per document.
The GST calculator shows add vs remove with the working: $800 + GST = $920, or $920 incl. → GST component $120 (× 3/23).
When money hits the bank
An inclusive payment contains GST you will later pass to IRD. Treat that slice as not yours to spend — separate bank account for GST helps, but even a clear label on the invoice beats mental arithmetic at EOFY.
Daybook Free shows yours vs GST on cash received. It does not move money for you on Free.
Returns and records
You still file with IRD. Daybook Standard will lodge GST when live billing ships; until then, use your accountant or myIR and export PDFs from Daybook as support.