Ever looked at your Google Ads invoice and wondered: does Google Ads charge GST in New Zealand? You’re not the only one. It’s a common question for small business owners, marketers, and anyone trying to keep their books tidy.
Here’s the short answer: yes, Google Ads does charge GST to New Zealand customers but not in every case. And that’s where it gets confusing. Whether you’re running ads for your side hustle or managing thousands in monthly spend, it’s crucial to know how GST on international digital services works and whether you can claim GST on Google Ads as part of your tax return.
In this article, we’ll break it all down. You’ll learn when and why Google Ads charges GST, how to find it on your invoices, and how to make sure you’re doing things right with the IRD. We’ll also show you how to record it properly in your accounting software (hello, Google Ads GST invoice tips), what to do if you’re not GST-registered, and where to go if you need help.
Let’s get into it. Because guessing your tax obligations? Not a great business strategy.
Understanding GST on Google Ads in New Zealand
If you’re advertising online, especially through Google, knowing how GST on Google Ads works in New Zealand is non-negotiable. The IRD has specific rules for overseas digital services, and yes—Google is part of that list.
What is GST and who needs to register?
GST (Goods and Services Tax) is a 15% tax applied to most goods and services in New Zealand. If your business earns more than $60,000 per year, you’re legally required to register.
To learn how to register and what it involves, check out our full guide: how to become GST registered
Why overseas providers like Google charge GST in NZ
Since 2019, New Zealand requires overseas service providers (like Google) to collect GST if they’re selling digital services to Kiwi customers. This includes ads, streaming, and cloud services.
Here’s what you need to know:
- Google is classified as a “remote service provider”
- GST applies automatically unless you provide a GST number
- This aligns with global trends like Australia’s “Netflix Tax”
Does Google Ads charge GST to all New Zealand customers?
It depends on how your account is set up. Whether or not Google Ads charges GST can vary depending on whether you’re GST-registered, using a business or personal account, or if you’ve entered your tax info in your billing profile.
GST on business accounts vs personal accounts
If you’ve provided your NZ GST number to Google, they may not charge you GST—but that doesn’t mean you’re off the hook. You still need to report it as a reverse-charge supply in your GST return.
If you haven’t added your GST number, Google will add 15% GST to your invoice by default.
- Business accounts without GST info will be charged GST
- Personal Google Ads accounts are always charged GST
- If you manage multiple accounts, check each one separately
Related article: zero-rated GST rules for digital ads
How to check if GST is being charged on your invoice
To confirm whether Google Ads GST is applied, go into your Ads account and check your latest billing statement.
Here’s how:
- Go to Billing > Documents
- Open a recent invoice and look at the Tax Summary
- GST should be clearly listed if charged
Can you claim GST on Google Ads as a business expense?
If you’re GST-registered and using Google Ads to generate income, then yes—you can claim GST as an input tax credit. But only if the invoice meets IRD requirements.
GST input claims on overseas advertising services
To claim GST on your Google Ads invoice, it must:
- Show your business name and address
- Include a unique invoice number
- Clearly state the GST amount charged
- Be used strictly for business promotion
Need a refresher on how GST applies to other platforms? Here’s how it works with Facebook ads in New Zealand
How to record Google Ads GST in your accounting software
If you’re using Xero or another cloud system, make sure to code your Google Ads invoices correctly.
Here’s an example entry:
| Description | Amount (NZD) | GST (15%) | Total Paid | GST Claimable? |
|---|---|---|---|---|
| Google Ads Campaign – May | $500 | $75 | $575 | Yes |
| Google Ads Campaign – June | $1000 | $150 | $1150 | Yes |
Also, check whether you’re working with GST-inclusive or exclusive pricing in your reports: GST inclusive vs exclusive guide
How to ensure you’re compliant with IRD rules
Claiming GST on overseas services like Google Ads isn’t complicated, but the IRD expects you to play by the book. That means keeping tidy records and understanding how reverse charges work.
What the IRD says about overseas GST
According to IRD’s official guidance, any New Zealand business using remote services like advertising, software, or hosting must account for the GST if it wasn’t charged at source.
This is especially relevant for businesses that haven’t supplied their GST number to Google and are charged GST by default.
Tips to stay audit-proof
- Keep all Google Ads invoices for at least 7 years
- Reconcile every transaction in your accounting software
- Cross-check that your total GST claimed matches invoices issued
Know your GST obligations with confidence
So, does Google Ads charge GST in New Zealand? The answer is yes—if you haven’t added your GST number, Google will automatically charge you 15% GST on your ad spend. But even if it doesn’t appear on your invoice, that doesn’t mean you’re off the hook.
If you’re a GST-registered business, you can generally claim GST on Google Ads as an input expense—provided the service was used for business purposes and you hold proper documentation. Just make sure you’re reconciling correctly, especially if you’re also advertising on platforms like Facebook.
Need help navigating this or any other GST-related question? At BH Accounting, we connect you with the right expert so you don’t have to figure it out alone.
FAQ about does Google Ads charge GST?
Do I pay GST on Google Ads if I’m not GST registered?
Yes. If you haven’t provided a valid NZ GST number, Google will add 15% GST to your invoice by default. This applies to both individuals and businesses.
Can I claim GST on Google Ads for my business?
If you’re GST-registered and the ad spend is for business purposes, you can usually claim the GST as an input tax credit in your GST return. Keep proper records.
How do I add my GST number to Google Ads?
Go to Billing > Settings > Tax information, and enter your NZ GST number. This tells Google not to charge GST, but you must then reverse-charge it in your GST return.
Is Google treated as a New Zealand company for GST?
No. Google is an overseas remote service provider. That’s why it must collect and return GST on behalf of the New Zealand government unless you’re registered.
How do I reconcile Google Ads GST in Xero?
Use your chart of accounts to record the invoice with GST split correctly. You can label it as “Advertising – Google Ads” and apply the correct GST code depending on whether it’s charged or reverse-charged.