If your business turnover reaches $60,000 in any 12-month period, you must register for GST. Getting the timing right is important — registering late results in penalties, and you may be liable for GST on sales you didn’t collect.
You must register for GST if your taxable turnover exceeds $60,000 in any 12-month period (past or projected). Register within 21 days of crossing the threshold. Voluntary registration is allowed below $60,000 — useful if your clients are GST-registered. Register online through myIR. Once registered, charge 15% GST on all taxable supplies and file regular GST returns.
The $60,000 Threshold
The registration threshold is $60,000 of taxable turnover in any 12-month period. This is not the financial year — it is any rolling 12-month window.
What counts as taxable turnover:
- All sales of goods and services in NZ (standard-rated supplies)
- Zero-rated exports (counted toward turnover, taxed at 0%)
- Sale of business assets (in some cases)
What does NOT count:
- Exempt supplies (residential rental income, most financial services)
- GST charged on sales (turnover is GST-exclusive for assessment purposes)
- Income from employment (wages are not taxable supplies)
When Compulsory Registration Applies
You must register if:
- Your taxable turnover exceeded $60,000 in the last 12 months, OR
- You expect your turnover to exceed $60,000 in the next 12 months
Important: You must register within 21 days of the date you:
- Realised you had exceeded $60,000, or
- Began an activity where you expect to exceed $60,000
How to Register
Register online through myIR:
- Log in to myIR
- Go to Register → Register for a tax type
- Select GST
- Provide:
- Business description
- Start date for GST (date of registration — can be backdated)
- Filing frequency preference
- Bank account for refunds
IRD will assign your GST number (it is your IRD number) and confirm your registration. You can generally start charging GST from your registration date.
Filing Frequencies
You choose how often to file GST returns when you register:
| Frequency | Returns per year | Best for |
|---|---|---|
| 2-monthly | 6 | Most small businesses — default |
| Monthly | 12 | Businesses with regular GST refunds (e.g., exporters) |
| 6-monthly | 2 | Very small businesses under $500,000 turnover |
GST returns are due on the 28th of the month following the end of the period. For the common 2-monthly cycle ending 31 March: due 28 April. Ending 31 May: due 28 June.
Voluntary Registration
You can voluntarily register for GST even if your turnover is below $60,000. This is beneficial when:
- Your customers are GST-registered businesses (they claim your GST back — no cost to them if you charge GST)
- You have significant GST on expenses that you could claim back (e.g., equipment, software, premises)
- You expect to cross $60,000 soon
When voluntary registration is NOT beneficial:
- You sell primarily to individual consumers who cannot claim GST back (your prices effectively rise by 15%)
- Your expenses are minimal and GST refunds would be small
Late Registration Penalties
If you exceed $60,000 and fail to register within 21 days, IRD can:
- Charge GST on all supplies made since the date you should have registered
- Apply late registration penalties
- Charge use-of-money interest on unpaid GST
IRD does look for unregistered businesses — particularly in industries with high cash activity. Voluntary disclosure of a late registration reduces penalties.
After Registration: Your Obligations
Once registered:
- Charge 15% GST on all standard-rated supplies
- File GST returns by the due date for your filing period
- Pay net GST (GST collected minus GST paid on expenses)
- Keep GST records for 7 years
- Issue valid tax invoices for supplies over $50
Frequently Asked Questions
I’m a freelancer and just crossed $60,000. What do I do?
Register immediately through myIR (within 21 days). From your registration date, add 15% GST to your invoices. Contact existing clients to let them know your prices now include GST.
Can I charge GST before my registration is processed?
No. Only charge GST once your registration is confirmed by IRD. Do not charge GST and pocket it — you must remit it to IRD. If there is a delay in processing, discuss with IRD.
If I deregister later, what happens?
When you deregister (if turnover drops below $60,000 for 12 months), you may need to account for GST on remaining business assets (deemed supply). Get advice before deregistering to understand the implications.