GST compliance is non-negotiable for NZ restaurants above the $60,000 annual turnover threshold. Below that, registration is optional. Above it, every NZ business must be GST-registered and file returns with Inland Revenue. For most operating restaurants, this is a given.
What is less given is whether the GST and broader tax position is being managed correctly. Many NZ venue operators are compliant but suboptimal in their tax position. Here is what to know.
GST Basics for Restaurants
New Zealand’s Goods and Services Tax rate is 15%. For a restaurant, this means:
- Your prices to customers include GST (your $30 main includes $3.91 in GST that you collect on behalf of the government)
- Your supplier invoices include GST that you can claim back as an input tax credit
- The net GST payable is the difference between GST collected and GST paid
Filing frequency options:
| Annual revenue | Filing option |
|---|---|
| Under $500,000 | Six-monthly or monthly |
| $500,000–$24 million | Two-monthly or monthly |
| Over $24 million | Monthly only |
Most NZ restaurants file two-monthly or monthly. Monthly filing provides better cash flow visibility and reduces the impact of large periodic payments.
The GST timing trap: If you file six-monthly and have a strong Christmas-January period, you may face a large GST payment in February or March just as trading softens. Monthly filing smooths this and avoids the lump.
The Expenses That Are GST-Claimable
Every GST-inclusive business expense is claimable as an input tax credit. For restaurants, this includes:
- Food and beverage purchases from GST-registered suppliers
- Equipment purchases and repairs
- Commercial rent (if your landlord is GST-registered, which they should be)
- Utilities (power, gas, water)
- Professional services (accountant, lawyer, PR)
- Staff recruitment costs
- Software subscriptions for business use
- Vehicle costs (if used for business purposes)
What is not claimable: Personal expenses, entertainment above certain limits, and expenses relating to exempt supplies.
Staff meals: If you provide staff meals as a condition of employment, the GST on those ingredients can generally be claimed. Get this confirmed by your accountant as the rules can be specific.
Income Tax Positioning
NZ restaurant operators pay income tax on their taxable profit. The rate depends on the business structure:
- Sole trader: Taxed at personal income tax rates (up to 39% for income over $180,000)
- Partnership: Each partner taxed at personal rates
- Company: 28% flat rate
Most NZ restaurants of meaningful scale operate through a company structure (Ltd) for tax efficiency and liability protection.
Provisional tax: Once your tax liability exceeds $5,000 in a year, you will likely be required to pay provisional tax in instalments during the following year. Missing provisional tax payments attracts use-of-money interest from Inland Revenue. Set up provisional tax payments correctly from your first profitable year.
Depreciation and Capital Expenditure
Restaurant equipment (ovens, refrigeration, coffee machines, POS systems) is a capital expense that depreciates over time. Inland Revenue sets depreciation rates for each asset category. The depreciation reduces your taxable income each year.
Key point: in certain years, NZ has offered accelerated depreciation for small businesses. Check with your accountant whether any accelerated options apply in 2026.
When you replace equipment, the book value of the disposed asset versus the sale or scrap value creates either a depreciation loss (claimable) or a depreciation recovery (taxable). Keep records of all capital assets and their disposal.
Platform Fees and GST
Booking platform fees from NZ-based platforms are GST-inclusive and claimable as input credits. Platform fees from offshore platforms (such as Uber Eats, which is headquartered overseas) are subject to a different regime — offshore supplies of services to NZ businesses. Your accountant can advise on the correct treatment for your specific platforms.
The Accountant Investment
Restaurant accounting has enough complexity — food cost, payroll, GST, depreciation, employment entitlements — that an accountant who works with hospitality businesses is worth the investment.
The fee for a hospitality-experienced accountant is typically $2,000–$6,000 per year for compliance work, depending on complexity. The value they return in correct positioning, legitimate tax savings, and compliance risk avoidance is typically several times this.
Do not use a general accountant who does your personal tax return as your restaurant accountant unless they have direct hospitality experience. The specific knowledge matters.
Operational sustainability requires financial discipline. LocalFeed is the flat-fee booking platform that simplifies the revenue side. Free until 20 bookings.