NZ GST Debit Adjustments: Barter, Bad Debts, Insurance
17 October 2026 · Guide · Not tax advice
Educational information only. Not tax, legal or financial advice. We are not Inland Revenue (IRD) or ACC and are not affiliated with them. Check ird.govt.nz or ask a qualified tax agent. Sources read October 17, 2026. Anything marked expected should be re-checked. Examples use made-up numbers. This page contains no affiliate links.
Short answer: The IRD's page on "Other GST debit adjustments" says you work out debit adjustments that are added in with GST on sales and income. For barter, if you exchange for other goods and services you account for 3/23 of the current market value of what you got; if part is in money, you account for both 3/23 of the market value of the goods or services and the money received (regardless of accounting basis). For bad debts recovered after a GST deduction, include 3/23 of the amount recovered. For insurance payments relating to your taxable activity, include the GST content as an adjustment.
Barter
Example (made-up): you design a logo and, in return, a plumber fixes your sink; you judge the current market value of the plumbing at $460. You account for 3/23 of $460 = $60 of GST on your return. If you were also paid $115 cash, you'd account for the 3/23 on $460 and for the money received, as the IRD page says (for invoices see GST invoices).
Bad debt recovered
If you earlier claimed a GST deduction when you wrote off a bad debt (Goods and Services Tax Act 1985, s 26), you account for 3/23 of any amount you later recover. Example: you recover $230, so $30 of GST goes in your return.
Insurance payments
A payment from insurance relating to your taxable activity brings a GST content adjustment into your return (the page doesn't give the formula).
Other items on the page
- Exported secondhand goods: if you claimed GST on secondhand goods and later export them, account for 3/23 of the full purchase price.
- Entertainment expenses: an annual adjustment for the 50% that can't be claimed (entertainment guide).
Where it fits
These adjustments sit in your GST return alongside the filing dates in GST registration and filing. The IRD page we read was last updated April 28, 2021, so check the latest wording.
FAQ
Why 3/23? It is the fraction applied to a GST-inclusive amount at the current 15% rate (IRD's GST calculation page multiplies by 3 and divides by 23).
Is the barter value GST-inclusive? An IRD legislative commentary on the Goods and Services Tax Amendment Act 1986 (an old, secondary source, not the public guidance page) says open market value became GST-inclusive, which is why 3/23 is applied to the full market value. Agree the value in writing at the time of the swap.
Do I need to be GST registered? The page assumes you account for GST.
What we could not verify
- Return box numbers and how to enter these adjustments in myIR: not read.
- Whether the GST-inclusive barter value still reads the same today: the only source found is the 1986 legislative commentary, not the current guidance page. Our example is illustrative only.
- Insurance adjustment calculation: not stated.
- Any change since April 28, 2021: not checked.
- Treatment of non-cash exchanges for income tax: not covered here.
Sources (official)
- IRD, Other GST debit adjustments (last updated April 28, 2021) — official page (read in full October 17, 2026)