When Do You Need to Register for GST in New Zealand?
GST registration in New Zealand is required once your business reaches specific turnover thresholds. Understanding when and how to register with the Inland Revenue Department (IRD) is essential for compliance and maximizing tax benefits.
⚠️ Mandatory Registration
You must register for GST if your business has a taxable turnover of $60,000 or more in a 12-month period. Failure to register can result in penalties, back-taxes, and interest charges from IRD.
GST Registration Thresholds in New Zealand
| Business Type | Threshold | Notes |
|---|---|---|
| Standard Business | $60,000 NZD | Annual taxable turnover |
| Voluntary Registration | Below $60,000 | Optional registration available |
| Non-Resident | Any amount | May need to register for remote services |
| Expected Turnover | Projected $60,000+ | Register before reaching threshold |
Step-by-Step Registration Process
Option 1: Online Registration (Recommended)
- Access myIR
- Go to myIR online services
- Log in with your myIR credentials (or create an account)
- Navigate to GST Registration
- Select "Register for GST" from your account dashboard
- Choose your business type
- Provide Business Details
- IRD number (or apply for one simultaneously)
- Business structure (sole trader, company, partnership, trust)
- Contact information
- Bank account details
- Estimated annual turnover
- Choose Accounting Basis
- Invoice basis (accrual): GST paid when invoice issued/received
- Payments basis (cash): GST paid when money changes hands
- Hybrid basis: Payments for income, invoice for expenses
- Select Filing Frequency
- Monthly: Turnover over $24 million
- Two-monthly: Turnover $500,000 - $24 million (most common)
- Six-monthly: Turnover under $500,000
- Choose Registration Date
- Usually the 1st or 15th of the month
- Can be backdated if you've already exceeded threshold
- Submit and Receive Confirmation
- Review all details carefully
- Submit application
- Receive GST number (same as IRD number with GST suffix)
Option 2: Phone Registration
Call the IRD on 0800 377 774 (8am-8pm Monday-Friday) and a representative will guide you through the registration process.
Option 3: Through a Tax Agent or Accountant
Engage a registered tax agent or accountant who can register on your behalf. This option is recommended if you have complex business structures or need expert advice.
What You'll Need
Required Information:
- IRD number (or apply during registration)
- Business name and legal structure
- Contact details (phone, email, address)
- Bank account number for refunds
- Estimated annual turnover
- Main business activity description
Authentication:
- myIR user ID and password
- Or tax agent credentials
- Or phone verification (ID details)
Benefits of Voluntary Registration
Even if your turnover is below $60,000, voluntary GST registration has advantages:
✅ Advantages:
- Claim input tax: Recover GST paid on business purchases and expenses
- Professional appearance: Shows you're an established, credible business
- Better for B2B sales: GST-registered customers can claim your GST as input tax
- Export advantages: Easier to zero-rate exports
- Competitive pricing: GST-registered competitors may have lower net costs
⚠️ Disadvantages:
- Administrative burden: Must file GST returns regularly (monthly, 2-monthly, or 6-monthly)
- Cash flow impact: Must collect and remit GST to IRD
- Price increases: May make retail prices 15% higher for non-registered customers
- Record keeping: Detailed GST records required for 7 years
- Minimum 2-year commitment: Must remain registered for at least 2 years
Important Dates and Deadlines
When to register:
- You must register within 21 days of reaching the $60,000 threshold
- Or before you reach the threshold if you expect to exceed it in the next 12 months
- Can choose registration date (usually 1st or 15th of month)
Effective date:
- Can choose any date in the past 2 years or future (with justification)
- Usually from the 1st or 15th of the month
- Can be backdated if you've already exceeded the threshold (may owe back-GST)
GST Accounting Basis - Which to Choose?
| Basis | When GST Due | Best For |
|---|---|---|
| Invoice (Accrual) | When invoice issued/received | Larger businesses, extended payment terms |
| Payments (Cash) | When payment received/made | Small businesses, retail, cash-based operations |
| Hybrid | Payments for income, invoice for expenses | Businesses with slow-paying customers |
After Registration - Your Obligations
Once registered for GST, you must:
- Charge GST on taxable supplies: Add 15% to your prices (or show prices GST-inclusive)
- Issue tax invoices: For sales over $50 (including GST)
- File GST returns: Monthly, two-monthly, or six-monthly depending on your turnover
- Pay GST collected: Less input tax credits claimed
- Keep accurate records: For 7 years minimum
- Include GST number on invoices: Your IRD number with GST suffix
Cancelling GST Registration
You can cancel your GST registration if:
- Your turnover has fallen below $60,000 for the last 12 months
- You expect turnover to remain below $60,000 in the next 12 months
- You're closing your business
- You've been registered for at least 2 years (for voluntary registration)
Note: When you deregister, you may need to pay GST on assets you're keeping (like equipment, vehicles, or inventory purchased with GST claims).
Common Mistakes to Avoid
❌ Avoid These Errors:
- Delaying registration past the 21-day deadline
- Not keeping proper GST records and tax invoices
- Choosing the wrong accounting basis for your business
- Forgetting to charge GST on all taxable supplies
- Not claiming all eligible input tax credits
- Missing GST return filing deadlines
Need Help Calculating Your GST?
Use our free calculator to determine your GST obligations and check if you've reached the registration threshold.
🇳🇿 New Zealand GST Calculator (15%)