Facebook Ads: What NZ Businesses Need to Know

If your business is advertising on Facebook or Instagram, it’s important to understand how Goods and Services Tax (GST) applies and how to ensure you are not missing out on claiming legitimate deductions.

Since 1 April 2019, Meta (the parent company of Facebook, Instagram, and WhatsApp) has been required to charge 15% GST on advertising services sold to New Zealand-based businesses. However, many business owners remain unaware that they’re being charged GST or haven’t set up their Meta accounts correctly to claim it back.

In this article, we explain how GST applies to Meta advertising in New Zealand, how to check if you are being charged and what steps to take so your invoices are fully compliant and claimable.

Is GST Charged on Meta Ads in New Zealand?

Yes. Under New Zealand’s GST on remote services legislation, digital platforms like Meta are required to collect 15% GST when providing services to New Zealand customers including businesses.

If your billing address is in New Zealand, GST will be applied to all advertising spend, whether you’re boosting individual posts or running campaigns through Meta Business Manager.

Why Am I Being Charged GST by Meta?

In 2019, the New Zealand Government introduced GST rules that apply to overseas based digital service providers. Meta Platforms Ireland Ltd (Meta’s registered entity for NZ purposes) must collect GST on services provided to New Zealand customers, just like local suppliers.

This ensures a level playing field for local and international providers and means you will see GST added to your ad invoices unless you’ve claimed an exemption (which is rare for advertising).

How to Check if You’re Being Charged GST

To verify whether GST is being applied:

Log in to your Meta Business Manager
Navigate to Billing, Transactions
Open a recent invoice
Look for a line item showing GST (15%)

A valid tax invoice should include:

Your business name
A New Zealand billing address
A breakdown showing 15% GST
Meta’s supplier details (Meta Platforms Ireland Ltd)

Can You Claim GST on Meta Ad Spend?

Yes. If your business is GST registered and the invoice meets New Zealand GST invoicing requirements, you can claim back the GST on your next return.

Note: You cannot claim GST if your invoices are missing your GST number or don’t show GST being charged. This is commonly due to account setup issues.

What to Do If Your Invoices Don’t Show GST

If your Meta invoices do not show GST, it’s likely that:

Your business address isn’t listed as being in New Zealand
Your GST number has not been entered into your account

To correct this:

Open Meta Business Manager
Go to Payment Settings, Tax Info
Enter your GST number and legal business name as registered with IRD

Note: Meta will not amend previous invoices, so ensure your account details are up to date to avoid missing future GST claims.

What If You’re Not GST-Registered?

If you are not registered for GST, but Meta is charging you GST, that cost becomes part of your advertising expense. It cannot be claimed back.

This is common for:

Sole traders or freelancers under the $60,000 threshold
Small businesses yet to register

You may choose to register for GST voluntarily if you are approaching the threshold or want to reclaim input tax on eligible expenses like digital advertising.

Do Other Digital Platforms Charge GST?

Yes. Meta is not alone. Other overseas platforms that charge GST to NZ businesses include:

Google Ads
LinkedIn Ads
TikTok for Business
Microsoft Advertising

Each provider manages tax information independently, so you will need to review and update GST details for each account individually.

Summary Checklist

Task	Why It Matters
Check invoices for GST line	To confirm you are being charged GST
Ensure NZ address and GST number are correct in your Meta account	So future invoices are compliant
Claim GST on ad spend in your GST return	If you are GST registered and invoices meet IRD standards
Don’t claim GST if you’re not registered	It becomes a standard business expense
Repeat for Google, LinkedIn, TikTok etc.	Each has its own billing system

This article has been written not to address the supplier side and the four different options which we have noted below, but to help recipients make sure their GST information is correctly recorded with the suppliers to make sure they get charged and claim the correct amount.Remote services can be either:

Taxable at 15% when provided to a non-registered person (subject to the threshold) – section 8(3)(c); or
Taxable at 0% when the recipient is GST registered, and the supplier elects for the services to be treated as being provided in New Zealand – section 11A(1)(x); or
Non-taxable if the recipient is GST registered, and the supplier does not elect to treat the supply as being made in New Zealand – section 8(4D); or
Taxable at 15% if the recipient is GST registered, the supply is for $1,000 or less and is not treated as being made outside of New Zealand or zero rated (i.e., a tax invoice is technically incorrectly issued charging GST) – sections 8(4G) and 19K(9).

Need Help?

If you are unsure whether your business is set up correctly to claim GST on Meta or other digital advertising platforms, contact your Moore Markhams advisor today.

A quick check now could mean significant savings at tax time and ensure you’re getting full value from your marketing budget.