When do I need to register for GST in New Zealand?
You must register for GST if your taxable turnover exceeds or is expected to exceed NZD 60,000 in any 12-month period. Registration is voluntary below this threshold. Once registered, you charge 15% GST on most supplies and file regular GST returns.
Detailed Explanation
## GST Registration in New Zealand
### The NZD 60,000 Threshold
Goods and Services Tax (GST) registration is compulsory when your taxable supplies exceed NZD 60,000 in any 12-month period — either a rolling 12 months in the past, or projected for the next 12 months. You must register within 21 days of reaching or expecting to reach the threshold. If you fail to register on time, IRD can deem you registered from the date you should have registered — meaning you owe GST you probably did not collect.
### Voluntary Registration
You can register voluntarily even if turnover is below NZD 60,000. This is worthwhile if you have significant GST on business inputs (equipment, services) and want to claim back input tax credits. Voluntary registration makes sense when your major clients are GST-registered businesses who can claim back the GST you charge — the GST becomes neutral to them and you recover your input costs.
### How to Register for GST
Register online through myIR at ird.govt.nz. You will need your IRD number, business start date, estimated turnover, and the accounting basis you intend to use. Registration usually takes 1-3 business days.
You choose your accounting basis at registration: - Invoice basis
account for GST when invoices are issued or received. Most common for businesses with credit sales. - **Payments basis**: account for GST only when cash is received or paid. Available to businesses with turnover below NZD 2 million; beneficial for cash-flow if customers pay late.
### GST Filing Periods
IRD assigns a filing period based on your circumstances: - Two-monthly
the most common period. Returns due by the 28th of the month following the end of the period (with exceptions for the March and November periods). - **One-monthly**: businesses with turnover over NZD 24 million or those preferring monthly filing. - **Six-monthly**: available for businesses with turnover below NZD 500,000. Returns due by 28 January and 28 August.
### Standard-Rated, Zero-Rated, and Exempt Supplies
Standard-rated supplies (15% GST)
most goods and services sold in NZ including professional services, retail sales, commercial rent, and software.
Zero-rated supplies (0% GST)
you charge 0% GST but can still claim input tax credits on related purchases. Zero-rated supplies include: exported goods and services to non-NZ customers, sale of a going concern, supply of land between two GST-registered parties, and long-term accommodation.
Exempt supplies (no GST)
you cannot charge GST and cannot claim input tax credits on related costs. Exempt supplies include: residential accommodation rental, financial services (bank interest, insurance premiums), and certain educational services.
### Claiming Input Tax Credits
Once registered, you can claim back GST paid on business expenses. To claim, you need a valid tax invoice from the supplier. For transactions under NZD 1,000 (including GST), a simplified tax invoice is acceptable. For transactions over NZD 1,000, a full tax invoice is required when total GST is over NZD 50.
### Deregistering from GST
You can apply to deregister if taxable supplies fall below NZD 60,000. On deregistration, you must account for GST on all business assets you retain at their market value — this can be significant for businesses with substantial equipment or property.
### Offshore Supplier Registration
Non-resident businesses that supply remote services (software, digital content) to NZ consumers must register under the offshore supplier registration rules if their NZ supplies exceed NZD 60,000. This is NZ's equivalent of the global digital services tax regime.
Source: https://www.ird.govt.nz/gst/registering-for-gst
Real-World Examples
Freelancer crossing the threshold
A graphic designer earns NZD 45,000 in the first 9 months and lands a NZD 20,000 project pushing total over NZD 60,000. They must register within 21 days of signing the contract, then begin charging 15% GST from the registration date.
Start-up with early equipment investment
A new cafe spends NZD 80,000 on fit-out before opening, paying NZD 10,435 in GST on purchases. By registering voluntarily before opening, they can claim back this GST on their first return — a significant cash benefit with zero turnover yet.
Mixed zero-rated and standard supplies
A software company sells to both NZ customers (standard-rated, 15% GST) and overseas customers (zero-rated, 0% GST). It charges GST to local customers, charges nothing to overseas customers, but can still claim input tax credits on all operating costs because all its sales are taxable supplies.
Common Mistakes to Avoid
- Missing the 21-day registration window — if turnover crosses NZD 60,000, IRD can back-date registration and assess the GST you should have collected
- Confusing exempt and zero-rated supplies — zero-rated lets you claim input credits; exempt does not. Misclassifying supplies as exempt costs you the input credit
- Forgetting GST on deregistration — all retained business assets are subject to a deemed supply at market value when you deregister, potentially creating a large unexpected liability
- Not keeping valid tax invoices — claims can be denied on audit if you cannot produce a proper tax invoice for purchases over NZD 1,000
Frequently Asked Questions
Do I charge GST on services I provide to overseas clients?
Generally no — services exported to non-NZ clients are zero-rated if the service is consumed outside NZ. However, if the overseas client is an NZ resident or the services relate to NZ land or goods in NZ, normal 15% GST applies. Check the place of supply rules for cross-border services.
Can I claim GST on a vehicle I use partly for business?
Yes, but only the business-use proportion. If you use a vehicle 60% for business, you can claim 60% of the GST paid on purchase and running costs. Keep a logbook for 90 days every three years to establish the business-use percentage.
What happens if I file my GST return late?
A late filing penalty of NZD 250 applies for the first late return, NZD 250 for the second, and NZD 500 for each subsequent late return. Late payment interest also accrues at IRD's current rate (around 10.91% per annum as at 2026). File on time even if you cannot pay in full.
My business is a mix of taxable and exempt supplies — how do I calculate my GST claim?
You must apportion input tax credits. Only claim GST on costs that relate exclusively or substantially to taxable supplies. For overhead costs that relate to both, apportion using a fair and reasonable method — typically based on the ratio of taxable to total supplies.
Is GST charged on food in New Zealand?
Yes. Unlike Australia or the UK, New Zealand charges GST on virtually all food at 15%. There is no basic food exemption. Only items that fall outside the taxable supply rules (financial services, residential rent) are exempt.
Practical Tips
- Set aside 15% of every invoice into a separate account from day one — even before you are required to register. This builds the habit and ensures cash is available when your first GST return is due.
- Register for GST before purchasing major equipment — the input tax credit on a large purchase can fund months of operating costs.
- Use two-monthly filing periods initially. Monthly creates more compliance overhead; six-monthly means larger lump-sum payments.
- If you issue invoices to GST-registered clients, registration makes no difference to their cost — they claim back your GST. Delay only hurts you by forfeiting input credits.
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