Most amateur sports clubs in New Zealand are exempt from paying income tax. But all clubs still need to meet other tax obligations, including GST and PAYE.

This page explains the key tax rules for clubs, what you need to do, and where to get help.

Income tax exemption for amateur clubs

Your club may be exempt from income tax under the Income Tax Act 2007 if it meets all 3 of these criteria:

• It’s set up to promote an amateur game or sport
• The sport is played for the recreation or entertainment of the general public
• No part of the club’s funds are used for the private financial gain of any member, shareholder, or associate

This exemption supports non-profit community organisations that promote amateur sport for public benefit.

https://www.legislation.govt.nz/act/public/2007/0097/latest/DLM1512301.html

GST obligations for clubs

Even if your club is exempt from income tax, you may still need to register for and collect Goods and Services Tax (GST).

You must register for GST if your club’s annual turnover from taxable supplies is more than $60,000. This includes income from:

• bar sales
• non-member fees
• ticketed events
• membership fees (in some cases)

GST is a tax on most goods and services sold or consumed in New Zealand. Managing it correctly is essential for financial compliance.

https://www.legislation.govt.nz/act/public/1985/0141/latest/DLM72963.html

What to do once your club is GST registered

If your club is registered for GST, you must:

• Charge GST on taxable supplies like bar sales, event tickets, and some membership fees
• Issue tax invoices that include your GST number, invoice date, and a clear description of the goods or services
• Claim GST on business-related purchases and expenses
• File GST returns according to your club’s accounting cycle

Special GST rules for clubs

Some types of income are exempt from GST, including:

• grants and donations
• sale of second-hand goods
• some membership subscriptions

Sponsorship arrangements may be subject to GST depending on the promotional value and financial benefits involved.

PAYE and employment obligations

If your club pays staff, players, or contractors, you must:

• register as an employer with Inland Revenue
• deduct and pay PAYE (Pay As You Earn) tax
• keep accurate records of payments and deductions

https://www.ird.govt.nz/employing-staff/paye

Get professional advice 

GST and tax rules can be complex. To make sure your club meets all legal obligations and doesn’t pay more tax than necessary, we strongly recommend getting advice from a qualified accountant or tax advisor.

Key actions for clubs

1. Check if your club qualifies for income tax exemption
2. Monitor your annual turnover to see if GST registration is required
3. Understand which supplies are taxable or exempt
4. Keep clear financial records and file returns on time
5. Seek professional advice when needed

Useful links

https://www.ird.govt.nz

https://www.ird.govt.nz/roles/charities