GST (Goods and Services Tax) is charged at 15% on most goods and services in New Zealand. For business owners, GST is both a tax collected on behalf of the government and a cost that can be claimed back on business expenses. Understanding GST — when to register, how to file, and what you can and cannot claim — is essential for every NZ business owner and sole trader.
The $60,000 Registration Threshold
GST registration is compulsory when your business turnover exceeds $60,000 in any 12-month period. This applies to revenue, not profit — if you invoice more than $60,000, you must register regardless of whether you made a profit.
Voluntary registration is permitted below $60,000 and can be advantageous. A business that buys significant inputs (equipment, materials, professional services) may be able to claim back more GST than it collects, creating a net refund position. This is common in early-stage businesses and property development.
Once registered, you add 15% GST to your prices and remit the collected GST to IRD, minus the GST you paid on business expenses. The difference is what you owe (or are refunded).
Filing Periods and Deadlines
IRD allows businesses to file GST returns monthly, two-monthly, or six-monthly depending on turnover. Large businesses (over $24 million turnover) must file monthly. Most small businesses file two-monthly. The return and payment are due on the 28th of the month following the end of the period.
Missing a GST filing or payment triggers penalties and use-of-money interest. IRD is generally willing to arrange payment plans for businesses that engage proactively, but consistent late filing can trigger more serious consequences including GST deregistration proceedings.
What GST Applies To
GST applies to almost all goods and services supplied in New Zealand in the course of a taxable activity. The main exceptions are:
- Zero-rated supplies (GST charged at 0%): Exports, most financial services between GST-registered businesses, and the sale of land between GST-registered parties
- Exempt supplies (GST does not apply): Residential rent, most financial services to consumers, donated goods sold by non-profits
Understanding whether your supply is standard-rated (15%), zero-rated (0%), or exempt affects both what you charge and what you can claim back.
GST on Imported Goods and Digital Services
New Zealand charges GST on imported goods above the $1,000 customs threshold. For goods below this threshold purchased from overseas retailers, overseas businesses with significant NZ sales are required to register for and collect GST. Offshore digital services (streaming, software subscriptions) also attract GST through the “Netflix tax” rules.
GST Quick Reference
| Item | Detail |
|---|---|
| GST rate | 15% |
| Registration threshold | $60,000 turnover per 12 months |
| Voluntary registration | Permitted below $60,000 |
| Filing periods | Monthly, 2-monthly, or 6-monthly |
| Return and payment due | 28th of the month after the period ends |
| Zero-rated supplies | Exported goods/services, land between GST-registered parties |
| GST-exempt supplies | Residential rent, most financial services |
| Imported goods threshold | $1,000 — above this, NZ Customs collects GST at border |
Guides in This Section
- When to Register for GST in NZ — the $60,000 threshold, voluntary registration, and how to register
- GST for Small Businesses NZ — a practical guide for sole traders and small business owners
- Claiming GST Back — input tax credits, what you can and cannot claim
- GST on Imported Goods NZ — the $1,000 customs threshold and digital services GST
- Zero-Rated GST Supplies NZ — exports, land transactions, and the difference between zero-rated and exempt