Yacht GST in New Zealand: A guide to NZ Rules, Rates and Compliance

When purchasing or chartering a superyacht in New Zealand, Goods and Services Tax (GST) is a critical factor that is sometimes underestimated. The GST regime for yachts is technical and subject to change, and it can materially affect both acquisition costs and charter economics if not addressed early.

What is Yacht GST?

Goods and Services Tax (GST) is New Zealand’s consumption tax applied to goods and services supplied or used within the country. In the context of yachts, GST may apply either to the value of the vessel itself (on purchase or importation) or to charter income when the yacht is operated in New Zealand waters for private or commercial use.

New Zealand GST is charged at a flat rate of 15%. When a yacht is imported, customs duty may also be payable, generally up to 5%, unless relief is available under a free trade agreement (FTA) or a specific statutory exemption.

Ownership Vs. Charter GST

Ownership GST arises when a yacht is purchased and imported into New Zealand. Once GST has been paid, the vessel is treated as “permanently imported” or “GST paid”. This status allows the yacht to remain in New Zealand indefinitely without further import taxes or restrictions, including on resale. Permanent importation is particularly important for owners intending to base or operate their yacht long-term in New Zealand waters.

By contrast, charter GST applies to the charter fee rather than the underlying value of the vessel. Where a charter takes place in New Zealand waters, GST is generally charged at 15% on the charter hire.

Below is a summary of current GST/VAT yacht charter rates by Pacific Island country.

 Country ……………… GST Rate 2025
Australia ……………….. 10%
Fiji ……………………………. 5%
French Polynesia … 10%
Tonga ……………………… No system in place to collect charter tax
Vanuatu ………………….. 5%

How GST is Calculated

New Zealand Customs determines GST based on the declared value of the yacht, typically the purchase price paid by the importer, adjusted for any permitted depreciation.

Depreciation is only available where the yacht has been owned and used overseas by the importer for more than three months after taking possession. In those circumstances, Customs generally allows depreciation at 10% per annum, capped at a maximum reduction of 80% of the original purchase price.

It is possible for declared valuations to be evidenced or informed by qualified marine surveyors, particularly in cases where the original purchase price or depreciation schedule is not indicative of the true value of the vessel.

Who Is Responsible for Paying GST?

• Owners are responsible for paying GST on importation or purchase and for ensuring ongoing compliance if the yacht continues to operate in New Zealand.

• Charterers bear GST on the charter fee, which is usually charged and collected by the yacht’s fiscal representative, operator, or charter broker.

• Operators and management companies typically handle the administrative aspects, including GST registrations, record-keeping, invoicing, and compliance with New Zealand tax requirements.

How GST Applies to Yachts in NZ

GST treatment differs according to both the intended use of the yacht and the residency status of the owner or charterer. These distinctions pay a crucial role in determining whether GST is payable and whether any relief or deferral options are available.

Private Yachts

For privately owned yachts, New Zealand residents must pay GST (and any applicable duty) when a yacht is imported into or purchased in New Zealand. Once paid, the yacht achieves “GST paid” status, enabling unrestricted use in New Zealand without further import taxes. This provides certainty for owners planning extended cruising or long-term use in New Zealand waters.

In contrast, non-New Zealand residents may take advantage of the temporary importation entry (TIE) regime. Under TIE, a yacht may enter New Zealand without immediate payment of GST or duty, provided strict conditions are met. These typically include limits on the duration of the yacht’s stay (generally up to 21 months) and restrictions on charter activity, with commercial use capped at 65% of the yacht’s time in New Zealand. TIE is particularly attractive for overseas owners seeking seasonal cruising while retaining foreign registration.

Commercial Yachts

For commercial yachts, GST is applied differently. For commercially registered yachts, GST is charged on charter income earned in New Zealand waters, including charters undertaken by the owner.  At the same time, GST incurred on legitimate charter-related expenses, such as provisioning, berthage, marketing, and operational costs, may generally be recovered, provided the yacht is correctly registered and compliant.

How to Reduce or Defer Yacht GST

While GST is an unavoidable consideration in New Zealand, there are lawful and well-established strategies to manage, reduce, or defer GST exposure. With careful planning around ownership structure, registration, and operational profile, yacht owners can optimise their tax position while remaining fully compliant.

Commercial Registration

Registering a yacht for genuine commercial purposes (such as offering charters) allows access to GST exemptions on purchases, imports and related expenditure provided the yacht meets Maritime NZ commercial compliance requirements and is used for bona fide charter activity.

GST Deferrals and Exemptions

In certain circumstances, GST may be deferred or reduced. For example, yachts temporarily imported by non-residents may avoid upfront GST under the TIE regime, provided all conditions and time limits are observed. These mechanisms are intended to balance international yachting activity with New Zealand’s tax framework.

Risks of Non-Compliance

Failure to comply with GST and customs rules can result in significant financial penalties, interest, and operational restrictions, including detention of the vessel or retrospective tax assessments.

Buyer & Charterer Guidance

Before purchasing or chartering a yacht, it’s essential to confirm that all GST obligations are properly addressed. Thorough due diligence protects against unexpected costs or legal complications and ensures smooth operations.

We’re Here to Help

GST on yachts can seem complex, particularly given the interaction between domestic rules and international yachting practices. With informed planning and professional advice, however, GST issues can be managed efficiently and with confidence.

We specialise in guiding clients through the practical and legal complexities of yacht GST. Our team works closely with fiscal representatives and tax specialists to provide clear, current advice tailored to each ownership structure and cruising plan. From assessing import options to ensuring ongoing compliance, we help protect your investment and streamline your experience.

For tailored GST planning, ownership structuring, or assistance with yacht importation, please contact our experienced team.

Peter Dawson on +64 27 229 9624 or peter@maritimelaw.co.nz.

Troy Stade on +64 27 368 6730 or troy@maritimelaw.co.nz.

Petrina Sheldon on +64 22 605 9505 or petrina@maritimelaw.co.nz.