NZ restaurants and cafés add 15% GST to every sale once they exceed NZ$60,000 in annual revenue (the IRD voluntary registration threshold). The POS handles this in three ways that matter: (1) producing IRD-compliant tax invoices on every receipt with GST number, supplier details, and GST amount broken out; (2) categorising payment methods (EFTPOS, card, cash) for clean reconciliation; (3) getting sales into your accounting package — paid orders sync natively to Xero as invoices, and a GST-correct daily sales CSV export covers MYOB and the manual bookkeeper workflow. This is general guidance; confirm specifics with your accountant or IRD directly.
How does NZ GST work for restaurants in 2026?
NZ restaurants charge 15% GST on every sale once their annual turnover exceeds NZ$60,000 (the IRD voluntary registration threshold). The POS handles three things that matter: it produces IRD-compliant tax invoices on every receipt; it separates payment methods (EFTPOS, card, cash) for clean reconciliation; and it gets sales into your accounting package. SmakSpace does all three — connect your Xero account and paid orders sync as invoices automatically, with a GST-correct daily sales CSV export for MYOB and for bookkeepers who prefer the manual import.
The 15% GST rate (no change for 2026)
GST in New Zealand is a flat 15% on most goods and services, with food sold for immediate consumption (cafés, restaurants, takeaways) fully GST-rated. The rate has not changed for 2026 and is not currently scheduled to change. Registration is voluntary below NZ$60,000 annual turnover and mandatory above it. Once registered, every sale must show GST separately on the receipt and you account to IRD on your chosen return cycle.
What an IRD-compliant tax invoice must contain
Per IRD requirements, a tax invoice must show: the words "Tax Invoice" in a prominent place, the GST-registered supplier's name and GST number, the buyer's name (or "Cash Sale" for under-$200 receipts), the date, a description of the goods or services, the GST-exclusive amount, the GST amount, and the GST-inclusive total. Receipts under NZ$200 can be simplified. SmakSpace receipts include all required elements automatically, including GST number and supplier details configured during onboarding.
Choosing a GST return period (1, 2 or 6 monthly)
NZ businesses choose their GST return cycle when they register: 1-monthly (cashflow-heavy, lots of input GST to reclaim), 2-monthly (most common for cafés / restaurants), or 6-monthly (only available below NZ$500k annual turnover). Your POS should export to Xero in a format that matches your chosen cycle so the GST return is one click in Xero. SmakSpace exports daily; the Xero side aggregates by return period.
Payment method separation matters for reconciliation
A common GST headache is reconciling EFTPOS settlement totals against POS sales totals. NZ EFTPOS settles separately from card payments through Stripe or other online processors, and cash is its own thing. SmakSpace daily sales export today gives you the daily revenue total which reconciles against a single-provider bank deposit; per-payment-method column splitting, surcharge-by-line and tip-by-line columns are on our near-term roadmap so multi-provider venues get one-click reconciliation per clearing account.
The Xero NZ workflow with SmakSpace
Daily sales journal export is a CSV file that drops into Xero's import flow. Sales by category (food, beverage, retail) map to your chosen revenue accounts. GST output is already calculated at 15% per line. Tips are tracked separately (not GST-rated). EFTPOS / Stripe / cash settle to their respective clearing accounts. A typical café finishes its month-end GST reconciliation in 30 minutes versus the multi-hour spreadsheet exercise common with US-built POS systems.
Surcharges and the 2026 NZ surcharge ban context
NZ legislation around in-store EFTPOS / Visa / Mastercard surcharges has been proposed but legislative progress stalled through early 2026. Online surcharges are exempt. Until a ban is passed, surcharges remain legal but must be clearly disclosed before the transaction and shown separately on the receipt. SmakSpace surcharge handling shows the surcharge on the receipt as a separate line item and reports it separately in the daily export. Always confirm current legislative status with your accountant.
Common GST mistakes restaurants make
Three mistakes recur in IRD audits and bookkeeper laments. First: missing GST number on the receipt (especially when the POS is set up wrong). Second: treating tips as GST-rated when they should be GST-exempt (genuine tips that go to staff aren't GST-rated; service-charge auto-tips are). Third: not registering for GST when turnover crosses $60,000 (the obligation is on the operator, not IRD). A well-configured POS removes mistake one, handles mistake two automatically, and flags revenue trends so mistake three doesn't sneak up.