If you have read that bullion is GST-free in New Zealand and then found GST inside the price of a copper order, the explanation is straightforward, and it is not a technicality anyone should have to guess at.
New Zealand's GST exemption for bullion is narrower than it first appears. It applies to specific metals at purities set out in the legislation, and copper is not one of them. Copper bullion is a standard taxable supply, the same as a tool or a book.
Here is how that works, what it means for the numbers you see on screen, and where to go if you need something confirmed for your own situation.
The short answer
New Zealand's GST rules carve out an exemption for what the legislation calls fine metal. Fine metal is defined by reference to gold, silver and platinum at purities set out in the Act. Copper does not appear in that definition at any purity, so it is not fine metal for GST purposes.
That means copper bullion is treated like ordinary goods. GST applies at the standard rate, and every price you see on this site is shown GST-inclusive. The standard rate is currently 15%. Rates and definitions can change, so if you are relying on this for anything that matters, check the current position on the IRD website or with your accountant.
Purity does not change the answer
A common assumption is that the exemption is really about purity, so a high-purity copper product ought to qualify. It does not work that way. The definition names the metals first. The copper bullion listed on this site is .999 fine, which is three nines, but purity is beside the point here because copper is not on the list to begin with.
Exempt is not the same as zero-rated
This distinction is easy to miss if you deal with GST occasionally rather than daily.
- Zero-rated supplies are taxable supplies with GST applied at 0%. The seller can still claim input tax on their related costs.
- Exempt supplies sit outside the GST net. No GST is charged on the sale, and the seller generally cannot claim input tax on the costs of making that supply.
- Standard-rated supplies, which is where copper sits, carry GST at the standard rate, and a registered buyer may be able to claim that GST back depending on how they use the goods.
So a fine metal sale being GST-free is not a discount that copper is missing out on. It is a different tax treatment, with consequences on both sides of the transaction. Comparing a GST-free gold price with a GST-inclusive copper price is not comparing like with like, and that is worth keeping in mind when you look at per-ounce figures across different dealers and different metals.
How to read a GST-inclusive price
Every price across the copper bullion range already contains GST. No GST is added at checkout. What you see is what you pay, plus delivery if your order is under the free-delivery threshold.
To split a GST-inclusive figure at a 15% rate, multiply by 3 and divide by 23. That gives the GST component. Subtract it to get the GST-exclusive amount. Worked through on three products, rounded to the nearest cent:
- 1 Troy Ounce Copper Bar .999 Fine at $9.00 is $7.83 excluding GST, with $1.17 of GST.
- The Starter Stack 5 x 1oz Copper Rounds at $50.00 is $43.48 excluding GST, with $6.52 of GST.
- Tube of 20 x 1 Troy Ounce Copper Rounds at $160.00 is $139.13 excluding GST, with $20.87 of GST.
The per-ounce figures we publish follow the same convention. The tube of 20 works out at $8.00 per troy ounce, and that $8.00 is GST-inclusive, not a pre-tax number that grows at checkout.
Rounding
The GST component of a small item rarely lands on a clean cent, so the figures above are rounded. On a single $9.00 bar the exact GST component is closer to $1.1739 than to $1.17, which means adding up rounded per-item amounts can differ by a cent or two from the GST shown against an order total.
GST and the delivery charge
Delivery is part of the supply, so the delivery charge carries GST in the same way the goods do. The flat NZ$20 delivery charge is shown GST-inclusive, which works out to $17.39 plus $2.61 of GST at the standard rate.
Delivery is free on orders over NZ$200. That threshold is measured against prices as displayed, which are GST-inclusive, so you do not need to do any tax arithmetic to work out whether you have crossed it. We deliver within New Zealand only, tracked and signature required, and orders ship within 1 to 3 business days.
If you are GST registered
If you are registered for GST and you are acquiring copper for use in your taxable activity, the GST on the purchase is input tax in the ordinary way. Whether you can claim it, and how much of it, depends on what the goods are actually used for. That is a question about your business rather than about copper.
Two practical points worth knowing:
- To claim, you need to hold the taxable supply information IRD requires for a purchase of that size. If your order confirmation does not show what your accountant is asking for, get in touch and we will check what your order records show.
- Goods bought for private use, or for a mix of private and business use, have their own treatment. This is exactly the kind of thing to run past an accountant before you file rather than after.
If you are not registered for GST, this section does not apply to you. The price on the page is the price, and there is nothing further to do or claim.
Buying from overseas sellers
If you are comparing an overseas listing with a New Zealand one, GST is one of the differences to account for.
Goods imported into New Zealand generally attract GST. Depending on the value of the consignment, that GST is either charged by the overseas supplier at the point of sale or collected at the border before the goods are released, and there can be duty and entry fees on top. The thresholds that determine which path applies are set out in New Zealand's GST and customs rules and have changed over time, so check the current position with New Zealand Customs or IRD rather than assuming.
The point is simply that an overseas price displayed without tax is not directly comparable with a New Zealand price displayed with it.
Common misunderstandings
- "All bullion is GST-free in New Zealand." The exemption is limited to fine metal as defined in the legislation. Copper is not included.
- "If it's .999 it must qualify." The definition turns on which metal it is, not only on how pure it is.
- "GST gets added at checkout." Not here. Displayed prices already include it.
- "Exempt means the seller pays no tax." Exempt supplies also block the seller from claiming input tax on related costs, which is a real cost, not a free ride.
Where to check
We can tell you how our prices are constructed and what is on your order. We cannot tell you how GST applies to your circumstances, because that depends on facts we do not have. For anything about registration, input tax claims, or how a purchase should be treated in your accounts, talk to your accountant or go straight to IRD.
This article is general information about how GST applies to a copper purchase in New Zealand. It is not tax advice and it is not financial advice. Williams Bullion Ltd is not a licensed financial adviser or a tax agent, and nothing here is a recommendation to buy or hold any metal. Confirm your own position with a qualified adviser or with IRD.
If you have a question about a specific order or the paperwork attached to it, contact us and we will help where we can.