Restaurateur / Café Owner
Tax guide for New Zealand self-employed restaurant and café operators
Allowable Expenses
- Food & beverage costs — Ingredients, stock, beverages for sale
- Staff wages — All wages paid to employees (record as cost of employment)
- Rent & utilities — Premises rent, power, water, refuse
- Equipment & maintenance — Kitchen equipment maintenance, repairs
- Marketing — Website, social media ads, restaurant listing fees
Tax Tips
- Staff meal allowances have specific rules — get clarity from a tax agent on taxability
- Keep separate records of owner drawings vs business expenses
- Marketing costs including Google Business Profile and booking platform fees are deductible
- Eftpos and payment terminal fees are deductible as bank charges — track them monthly
Frequently Asked Questions
How does GST work for NZ restaurants and cafés?
Restaurants must register for GST if turnover exceeds NZ$60,000. You charge GST on all sales (menu prices typically include GST) and can claim back GST on business purchases. File GST returns regularly — most food businesses use monthly or bi-monthly filing.
Are staff meals at the restaurant a deductible expense?
Owner meals eaten at the restaurant for personal consumption are not deductible. Staff meals provided as part of employment are generally a deductible employment expense, but may have fringe benefit tax (FBT) implications. Consult a tax agent on FBT obligations for your situation.
How do NZ restaurant owners handle owner drawings for tax?
Drawings are not business expenses — they are the owner taking profit from the business. They do not reduce your taxable income. Only genuine business expenses (food costs, rent, wages, utilities) are deductible. Your taxable profit is your business income less deductible expenses, regardless of drawings.
Can NZ restaurant owners claim kitchen equipment as a tax deduction?
Yes. Commercial kitchen equipment — ovens, refrigerators, dishwashers, coffee machines — is a deductible business asset. Items over NZ$1,000 must be depreciated over their useful life using IRD rates. Items under NZ$1,000 can be expensed immediately.