Quick answer
You can claim work travel such as flights, taxis, public transport, accommodation, and meals when you travel away from your normal workplace for business. Ordinary commuting between home and your regular workplace is private and not deductible. Where a trip mixes business with a holiday, you apportion the cost. Domestic travel carries 15% GST you can claim with taxable supply information.
Is business travel tax deductible in New Zealand?
Work travel is deductible; commuting is not. Travel to clients, between worksites, or to a temporary workplace away from your normal base is business travel, and when it takes you away overnight the related accommodation and meals are deductible too. Ordinary travel between home and your regular place of work is private, even if you do some work on the way.
The main complication is mixed-purpose travel. If a trip has both a business and a private or holiday element, you apportion the cost between the two. Where the primary purpose is clearly business, the travel to and from the destination may be fully deductible, with only the private days on the ground excluded. For travel in your own vehicle, use the kilometre rate method instead. See the New Zealand expense rules for the wider picture.
How much can you claim?
You claim the actual cost of work travel, with any private portion removed. The GST treatment depends on whether the travel is domestic or international:
| Travel type | GST treatment | GST claim |
|---|---|---|
| Domestic flights, taxis, trains | 15% GST | Claimable with taxable supply information |
| International airfares | Zero-rated | None |
| Accommodation in New Zealand | 15% GST | Claimable with taxable supply information |
| Meals while travelling (solo, business) | 15% GST | Fully claimable |
Worked example. A manager flies Auckland to Christchurch for a three-day project: a $360 domestic return flight including GST, $70 of taxis, and two nights of accommodation. The flight, taxis, and accommodation are deductible, and the 15% GST on each is claimable with taxable supply information. A side trip to Queenstown for a private weekend on the same ticket would be apportioned out.
Record-keeping requirements
Keep the taxable supply information for each travel cost that includes GST, and note the business purpose. Where a trip has a private element, keep enough detail to support your apportionment between business and private days. A short itinerary or calendar showing the work activities on each day is usually enough to substantiate the business portion if the IRD asks. Business records must be kept for seven years.
How to claim, step by step
- Confirm the travel is for business, not ordinary commuting.
- For travel in your own vehicle, use the kilometre rate method instead.
- Claim the actual cost of flights, public transport, taxis, and accommodation.
- Apportion out any private or holiday portion of the trip.
- Claim GST on domestic travel with taxable supply information; international travel is zero-rated.
- Keep records for seven years.
Common mistakes
- Claiming home-to-work commuting as business travel.
- Failing to apportion a trip that mixed business with a holiday.
- Trying to claim GST on a zero-rated international airfare.
- Claiming a partner’s travel that has no genuine business role.
- Losing the taxable supply information needed to claim GST above $200.
Software that helps
Travel receipts arrive across flights, apps, and paper, so the win is capturing and coding them consistently.
- TravelPerk books and itemises business trips and feeds the spend into the ledger.
- ExpenseFlow captures flight, taxi, and accommodation receipts from email and photos, applies the correct GST or zero-rated treatment per type, and syncs the coded trip to Xero.
- Hnry records travel claims for sole traders alongside their tax.
FAQ
See the answered questions above for commuting, accommodation, mixed-purpose trips, companion travel, and GST.