If you run a business in New Zealand, GST registration becomes compulsory once your taxable turnover reaches, or is expected to reach, $60,000 in a 12-month period. You can also choose voluntary GST registration if your turnover is below $60,000, provided you are carrying on a taxable activity.
At Humphries Associates, we find the most important thing is not simply knowing the GST threshold in NZ. It is understanding when the threshold applies, what happens after you register, and how GST registration will affect your prices, cash flow and record keeping.
As at 2 September 2026, New Zealand’s standard GST rate remains 15%. Inland Revenue confirms that a business generally must register when taxable turnover was at least $60,000 in the previous 12 months or is expected to be at least $60,000 in the next 12 months.
Quick answer
You generally need to register for GST in New Zealand when:
- your taxable activity has generated at least $60,000 of turnover in the last 12 months
- you expect taxable turnover to reach at least $60,000 in the next 12 months
- you are carrying on a taxable activity and you are already adding GST to the prices you charge customers.
You do not automatically need to register simply because you start a business.
If your taxable turnover is below $60,000, you may still be able to register voluntarily. That can make sense for some businesses, particularly where there are significant GST-bearing expenses or most customers are themselves GST registered. However, voluntary registration also creates ongoing filing, record-keeping and payment obligations.
What this means for a New Zealand business
GST registration changes how money flows through your business.
Once registered, you generally charge GST at 15% on taxable supplies, collect that GST from your customers and account for it to Inland Revenue. You can generally claim GST relating to eligible purchases and expenses connected with your taxable activity.
For example, imagine a consulting business that normally charges $1,000 for a piece of work.
If they become GST registered and quote their fee as “$1,000 plus GST”, the customer pays:
Service fee: $1,000
GST at 15%: $150
Total: $1,150
The $150 is not additional business income that they can simply spend. It forms part of the GST they need to account for in their GST return.
Pricing becomes particularly important for businesses selling directly to consumers. If the business has historically charged customers $100 including everything and then register for GST, they need to decide whether the price becomes $115 or whether they absorb the GST within the existing $100 price.
That decision can have a direct impact on their margin.
For businesses selling predominantly to GST-registered businesses, the effect on pricing may be different because those customers may be able to claim the GST component themselves.
How it works step by step
1. Work out whether you are carrying on a taxable activity
GST registration is based on taxable activities rather than simply having a company, NZBN or business name.
A taxable activity generally involves supplying goods or services continuously or regularly for payment.
There are also GST rules for specific activities, exempt supplies, property transactions, overseas businesses and online marketplaces. These situations can become more complicated, so we would not assume the normal rules apply without checking.
2. Check your turnover
Next, we recommend looking at both directions:
What has the business generated during the previous 12 months?
and
What is the business reasonably expected to generate during the next 12 months?
This is important because GST registration does not simply depend on waiting until the end of a financial year.
The $60,000 test operates over a 12-month period. Inland Revenue considers both historic turnover and expected future turnover.
For example, a business that has generated $45,000 over the previous 12 months may still need to register if it signs new contracts that make it reasonable to expect turnover will exceed $60,000 during the coming 12 months.
3. Decide whether voluntary GST registration makes sense
If your turnover is below the GST threshold, voluntary GST registration may still be available.
There can be advantages. A registered business may be able to claim GST on eligible business expenses relating to its taxable activity.
There are disadvantages too.
Once registered, you take on obligations to charge GST where required, maintain appropriate records, file GST returns and pay any GST owing. Inland Revenue can also impose penalties when returns or payments are late.
We would therefore look at voluntary registration as a business decision rather than automatically assuming registration is better.
4. Gather the information needed to register
If you decide or are required to register, Inland Revenue says you should have the following information available:
- the IRD number of the person or organisation being registered
- the bank account number to use for GST refunds
- turnover for the previous 12 months
- expected turnover for the next 12 months
- your Business Industry Classification, or BIC, code.
You will also need to choose your GST filing frequency and accounting basis.
5. Register through myIR
Most New Zealand businesses can register through myIR.
Within myIR, you can select the option to register for a new tax account, select GST, provide the required business details and submit the registration.
Once Inland Revenue confirms the registration, the GST account appears in myIR. Your GST number is the same as the IRD number of the registered person or entity.
6. Set up your accounting correctly
Registration is only the beginning.
You also need to make sure your accounting software, invoicing, pricing and bank reconciliation processes correctly handle GST from your registration date.
This is where good bookkeeping becomes particularly important.
Our guides on New Rules on GST Invoicing and Modernising Record Keeping for GST explain some of the record-keeping requirements that apply once you are GST registered.
Calculations, records or decisions involved
When registering, one of the important decisions is which GST accounting basis to use.
Inland Revenue currently provides three main accounting bases:
Payments basis: GST is generally accounted for when payments are actually received from customers and made to suppliers. Businesses generally need sales of $2 million or less to qualify.
Invoice basis: GST is generally accounted for based on invoices issued and received, even where payment has not yet occurred.
Hybrid basis: The invoice basis applies to sales while the payments basis applies to expenses. Inland Revenue notes that this approach is not commonly used by small businesses because of potential cash flow consequences.
You also choose a filing frequency.
As at 2 September 2026, the general options include monthly, two-monthly and six-monthly GST filing, subject to turnover eligibility. Businesses with sales over $24 million in a 12-month period must generally file monthly, while six-monthly filing is available where sales are under $500,000.
For many smaller businesses, the payments basis can be attractive because GST is more closely aligned with actual cash received and paid. But that does not automatically make it the right choice for every business.
We would consider your turnover, customer payment terms, supplier terms, accounting systems and cash flow before choosing.
Keep the right records
GST registration also means record keeping needs to become part of your normal business process.
Inland Revenue requires businesses to retain records supporting sales, purchases and GST calculations. Tax records generally need to be kept for at least seven tax years.
Since 1 April 2023, the old emphasis on a document specifically called a “tax invoice” has been replaced with requirements around taxable supply information. Information may be supported by combinations of invoices, bank statements, contracts, supplier agreements and other records.
Common mistakes and risks
One mistake we regularly want business owners to avoid is treating the $60,000 threshold as something they only check once a year.
A fast-growing business can cross the threshold between annual accounts.
Another common problem is charging customers GST before the GST position has been properly established. Inland Revenue specifically identifies adding GST to prices as a situation that can trigger registration requirements. Backdating registration is possible only in particular circumstances and should not be relied on as a way to correct poor planning later.
Other risks include:
- absorbing GST into an existing retail price without understanding the effect on profit margin
- choosing an unsuitable accounting basis
- failing to put aside enough cash for GST payments
- claiming GST without adequate supporting information
- missing GST returns because there was no activity during the period
- confusing turnover with profit
- assuming accounting software automatically makes every GST treatment correct
Even if your GST return is nil, a registered business still generally needs to file the return for that taxable period.
Practical checklist
Before registering for GST, we recommend you:
- Calculate taxable turnover for the previous 12 months
- Forecast taxable turnover for the coming 12 months
- Confirm whether your supplies are taxable, zero-rated or exempt
- Decide whether registration is compulsory or voluntary
- Review the effect of adding GST to your prices
- Choose an appropriate accounting basis
- Choose your GST filing frequency
- Set up your accounting software correctly
- Make sure your invoices and records contain the required taxable supply information
- Create a process for setting aside GST rather than treating it as available cash
- Record GST return and payment deadlines in your accounting calendar
- Review your GST position whenever your business changes significantly.
Once registered, GST returns are generally due on the 28th of the month following the end of the taxable period, with specific exceptions for periods ending 31 March and 30 November.
When to speak with an accountant or business adviser
GST registration itself can be relatively straightforward. The decisions surrounding it are where professional advice can become valuable.
We would consider getting advice where:
- turnover is close to $60,000
- revenue is growing rapidly
- you are considering voluntary GST registration
- you sell both taxable and exempt supplies
- you are buying or selling property
- your customers are mainly consumers rather than businesses
- you have significant business assets or establishment costs
- you operate through more than one entity
- you trade internationally
- you have already exceeded the threshold but have not registered
- you have been charging GST while unregistered.
Our Tax Return Services team can help you understand your GST obligations alongside your wider tax position rather than looking at GST in isolation.
If you are unsure whether you need to register, contact us before making changes to your pricing or GST treatment.
Frequently asked questions about GST registration in New Zealand
What is the short answer for a New Zealand business?
If your taxable activity generated at least $60,000 in turnover during the last 12 months, or you reasonably expect it to generate at least $60,000 in the next 12 months, you generally need to register for GST. You may also voluntarily register below $60,000 if you carry on a taxable activity.
What records or information will I need?
For GST registration, Inland Revenue generally asks for your IRD number, bank account details, previous and expected turnover, BIC code, accounting basis and filing frequency. After registration, you need records supporting your sales, purchases, expenses and GST calculations. Tax records generally need to be retained for at least seven tax years.
What are the most common mistakes?
Common problems include not monitoring turnover, registering too late, charging GST incorrectly, choosing the wrong accounting basis, failing to reserve money for GST payments, keeping inadequate records and assuming GST only needs to be considered at the end of the financial year.
When should I get professional advice?
We recommend seeking advice if your turnover is approaching the GST threshold, you are considering voluntary registration, your GST position involves property or unusual transactions, you have already crossed the threshold without registering, or you are unsure how registration will affect your pricing, cash flow or GST claims.
This article provides general information only. GST treatment can depend on the nature of your activities, transactions, business structure and individual circumstances. Professional tax advice should be obtained where you are uncertain about how the rules apply to your situation.