NZ GST Registration Threshold Guide
NZ GST Registration Threshold Guide
Use this guide to understand the main New Zealand GST registration threshold. The calculator below is a screening aid only.
Check the NZ$60,000 threshold
What the threshold means
IRD generally requires GST registration when taxable turnover was at least NZ$60,000 in the previous 12 months or is expected to reach that amount in the next 12 months. A business can also register voluntarily, including where it adds GST to prices.
What happens after registration
Registered businesses generally charge GST on taxable supplies, file GST returns, keep required records and account for GST collected and eligible input tax.
Example
If taxable turnover was NZ$55,000 in the last 12 months but is reasonably expected to reach NZ$65,000 in the next 12 months, the threshold test should be considered using the expected-turnover rules.
Worked example: the 12-month turnover test
Wiremu runs a plumbing business in Rotorua. In the 12 months to 30 June his taxable sales totalled $58,000. He has just won two commercial maintenance contracts, so he reasonably expects $72,000 of taxable sales in the next 12 months.
Even though the past 12 months sit under the threshold, the expected-turnover test is met, so Wiremu must register for GST. If instead he had $58,000 behind him and expected only $55,000 ahead, registration would stay optional. Two details trip people up: the $60,000 is measured on taxable supplies excluding GST, and zero-rated sales such as exports count toward the threshold, while exempt supplies such as residential rent do not.
What to do when you cross the threshold
Once you become liable, register with IRD within 21 days. Your registration takes effect from a date IRD agrees with you, and from that date you charge GST on taxable supplies and can claim GST on business purchases. Before you register, gather your turnover records for the last 12 months and your forecast, because IRD can ask how you worked out that you crossed the line. After registering, choose your filing frequency and accounting basis, then set up your invoicing so GST is shown clearly from day one.
NZ GST registration threshold FAQs
Is the $60,000 threshold GST-inclusive or exclusive?
Exclusive. The test looks at your taxable supplies before GST is added. If your GST-inclusive sales are $69,000, the taxable turnover is $60,000, which meets the threshold exactly.
Do exports count toward the threshold?
Yes. Zero-rated supplies such as exported goods count as taxable supplies for the threshold test. Exempt supplies, such as residential rent, do not count.
Can I register voluntarily below $60,000?
Yes. Many small businesses register early so they can claim GST back on start-up costs and equipment. Once registered you must charge GST and file returns, so weigh the admin against the benefit.
What if my turnover drops below $60,000 after I register?
You can generally stay registered. You may be able to cancel your registration if your turnover has fallen below the threshold and is likely to stay there.
What happens if I should have registered but did not?
IRD can register you and backdate the registration, which leaves you owing GST on past sales without having collected it. Penalties and interest can apply, so register as soon as the test is met and try the Registration Calculator if you are unsure.
IRD: Registering for GST · Registration Calculator · GST Return Calculator · Filing Frequency Checker
