When NZ businesses must register for GST ($60,000 test), voluntary registration, filing frequency, payments vs invoice basis, due dates and property traps.
By the Find an Accountant NZ team · Facts checked against the sources listed below on 18 October 2026.
Most people starting a business ask the same question within months: do I need to register for GST, and what happens if I get it wrong? GST registration changes your prices, your paperwork and your cash flow, so it is worth getting right from the start. This guide covers when registration is compulsory, when it is optional, how GST returns work, and the traps around property and business assets.
Starting a business does not, by itself, mean you have to register. Under IRD's registration rules, you must register if you carry on a taxable activity and either:
The test looks backwards and forwards, so a business that is growing quickly can cross it part way through a year. business.govt.nz warns that penalties can apply if you do not register when you need to. If you have been charging GST without being registered, IRD can backdate a registration, but only in exceptional circumstances, so contact IRD rather than waiting.
You can register voluntarily below $60,000. IRD lists these advantages:
The downsides are that you must add GST to your prices, file returns regularly, and pay penalties if returns or payments are late. Whether it suits you depends on your customers, your set-up costs and how much paperwork you can handle. That is a good first question for an accountant.
Once registered, you charge GST at 15% on most taxable supplies. You can add it on top of your price ($100 plus GST is $115), or include it in your price, in which case 3/23 of the total is GST. In each return you work out the GST you collected on sales minus the GST you paid on business purchases. If you collected more, you pay the difference. If you paid more, you get a refund.
To claim GST on a purchase, you must keep taxable supply information, which replaced the old tax invoice requirement from 1 April 2023, according to IR375. You can claim only to the extent the item is used in your taxable activity. For items costing $10,000 or less (excluding GST), you can use the principal purpose method, where the item is either fully claimable or not at all. For anything over $10,000, you must apportion between business and private use, for example by floor area for a home office or by logbook for a vehicle.
When you register, you choose a filing frequency and an accounting basis:
IRD says your GST periods should line up with your income tax balance date, which is 31 March for most businesses.
A GST return and payment are usually due on the 28th of the month following the end of each taxable period. There are two exceptions: the period ending 31 March is due 7 May, and the period ending 30 November is due 15 January, according to IRD's filing page. You must file every period, even if it is a nil return. IRD does not grant extensions of time for GST returns. When a due date lands on a weekend or public holiday, business.govt.nz says the following working day is fine and no penalty applies.
Land deals are where GST mistakes cost the most. Long-term residential rent is exempt from GST, and IRD warns that if you register and claim GST on buying a long-term rental, you will have to repay it and possibly more. IRD recommends getting advice from a tax adviser before you sign any property paperwork. Short-stay accommodation is different. See our rental property tax guide.
Selling a business as a going concern can be zero-rated (GST at 0%) if the criteria are met, according to IRD's GST guide (IR375). If you deregister, business.govt.nz says you must account for GST on business assets you keep. If you close and do not plan another taxable activity within 12 months, you must cancel within 21 days.
Getting help is most worthwhile when you are approaching the $60,000 threshold, deciding whether to register voluntarily, choosing a basis and frequency, buying or selling land or a business, or setting up your accounting software. If you also expect to pay provisional tax, IRD's ratio and AIM options link provisional tax to your GST, so it makes sense to set both up together. See our provisional tax guide and business structure guide.
Look for a firm that does this work every week, not once a year. Some questions are worth asking before you sign up:
Compare local firms on our GST, bookkeeping and payroll specialists in Hamilton page, and read how to choose an accountant for a fuller checklist.
This guide is general information, not tax or financial advice. Talk to an accountant about your situation.
Registration is compulsory once turnover from your taxable activity reaches $60,000 over the past 12 months, or is expected to reach $60,000 over the next 12 months. It is also compulsory if you add GST to your prices.
Usually on the 28th of the month following the end of the taxable period. The period ending 31 March is due 7 May, and the period ending 30 November is due 15 January.
Six-monthly filing is available if your sales are under $500,000 in any 12-month period.
No. IRD does not give extensions for GST returns, and a return is needed for every period, even when there is nothing to report.
No. Long-term residential rent is exempt from GST. Short-stay accommodation is a taxable activity and can bring you into GST.
All 1671 firms, ordered by the same published criteria.