Tax deductions for online sellers & resellers in New Zealand
If you sell online you can generally claim the cost of your stock, platform and payment fees, packaging and postage — and the point where a hobby becomes a business is what decides whether you declare the income at all. In New Zealand you report it through an IR3 individual return, plus GST returns once registered.
Ecommerce and reselling — Etsy, eBay, Depop, Shopify, print-on-demand and market stalls — is the second-largest digital side hustle, and the costs of getting an order out the door are generally claimable where they meet the three rules below: platform and payment fees, packaging, postage and the space you pack in. Because fees come out before the money reaches you, capturing the gross sale and the fee separately is what makes sure you claim the full amount.
The three rules for any claim
- You paid for it yourself and weren’t reimbursed.
- It directly relates to earning your income.
- You have a record — a receipt, invoice or bank statement.
Where you stand in New Zealand
Self-employed income is declared in your individual return and taxed at the personal rates. There is no tax-free threshold — tax applies from the first dollar — and once your tax bill passes the threshold you move onto provisional tax, paying in instalments through the year.
- GST rate
- 15%
- Registration
- NZD 60,000 turnover/yr
- Returns
- Monthly, 2-monthly or 6-monthly
- Authority
- Inland Revenue
What you can usually claim
These are the costs of doing the work — the same list wherever you are based. How each one is claimed follows the rules in New Zealand, set out below.
Cost of stock and materials
What you pay for the goods you sell, or the raw materials you make them from, including import duties and freight to get stock to you.
Platform, listing and payment fees
Selling fees, listing fees, transaction and payment-processor fees, and store subscriptions. These are deducted before you see the money, so they are easy to miss without a record.
Packaging and postage
Boxes, mailers, labels, tape and protective materials, plus postage and courier costs you pay to get orders to customers.
Home storage and workspace running costs
The running costs of the area you use to store stock or pack orders can generally be apportioned to the business use.
Advertising and photography
Paid promotion, product photography, and tools you use to list and market products.
How New Zealand treats them
Vehicle and travel
Vehicle costs are claimed on the business-use share, using either a logbook or Inland Revenue’s kilometre rates.
Home workspace
The business-use share of home costs is claimable, worked out from the area used for work or using the square-metre rate option.
Equipment and higher-cost gear
Assets over the low-value threshold are depreciated at Inland Revenue’s rates rather than claimed in full up front.
This is general information, not personal tax advice — what you can claim depends on your circumstances, so check with Inland Revenue or a registered tax adviser, and keep records to back up every claim. Official guidance from Inland Revenue →
Keep in mind
- Items you bought for yourself and later happened to sell.
- The private share of your home running costs.
- Provisional tax catches people in year two. Your first year has no instalments, then the next year you can face both the previous year’s bill and the new year’s instalments at once — so it is worth setting money aside before it arrives.
Online sellers & resellers in New Zealand — common questions
What can online sellers & resellers claim in New Zealand?
The spending travels even though the rules do not: cost of stock and materials, platform, listing and payment fees, packaging and postage, home storage and workspace running costs and advertising and photography. What changes is how you claim it — in New Zealand, assets over the low-value threshold are depreciated at Inland Revenue’s rates rather than claimed in full up front. This is general information, not personal tax advice — what you can claim depends on your circumstances, so check with Inland Revenue or a registered tax adviser, and keep records to back up every claim.
How do online sellers & resellers in New Zealand report self-employed income?
You report it through an IR3 individual return, plus GST returns once registered. Self-employed income is declared in your individual return and taxed at the personal rates. There is no tax-free threshold — tax applies from the first dollar — and once your tax bill passes the threshold you move onto provisional tax, paying in instalments through the year. This is general information, not personal tax advice — what you can claim depends on your circumstances, so check with Inland Revenue or a registered tax adviser, and keep records to back up every claim.
Can online sellers & resellers in New Zealand claim a home workspace?
The business-use share of home costs is claimable, worked out from the area used for work or using the square-metre rate option. This is general information, not personal tax advice — what you can claim depends on your circumstances, so check with Inland Revenue or a registered tax adviser, and keep records to back up every claim.
Do online sellers & resellers in New Zealand need to register for GST?
GST in New Zealand — rate: 15%; registration: NZD 60,000 turnover/yr; returns: Monthly, 2-monthly or 6-monthly. Whether you have to register turns on your own turnover and where your customers are, so check the current position with Inland Revenue before assuming you are under it. This is general information, not personal tax advice — what you can claim depends on your circumstances, so check with Inland Revenue or a registered tax adviser, and keep records to back up every claim.
More on self-employed tax in New Zealand — the New Zealand hub.
Other guides for New Zealand
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