Do I Need to Register for GST in NZ? The $60,000 Rule
Do I need to register for GST in New Zealand?
The short answer: you must register for GST once your turnover from a taxable activity was at least $60,000 in the last 12 months, or you expect it to reach $60,000 in the next 12 months. Below that, registration is voluntary. Once registered you add 15% GST to your prices, claim back the GST on business purchases, and file a return monthly, two-monthly or six-monthly. (Figures read from the IRD website, 3 September 2026.)
GST is the tax added to the price of most goods and services in New Zealand. The business collects it from customers and pays it to Inland Revenue, less the GST it paid on its own purchases. Whether you need to be part of that system comes down to one number.
What is the $60,000 threshold and how is it measured?
Inland Revenue's test has two limbs. You must register if:
- your turnover was at least $60,000 in the last 12 months, or
- you expect it will be at least $60,000 in the next 12 months.
Note the wording. It is any rolling 12-month window, not the tax year, and it is turnover (sales), not profit. A tradesperson invoicing $5,500 a month crosses $60,000 in eleven months even if the profit is a fraction of that. The forward-looking limb also matters: if you sign a contract that will clearly take you over $60,000, the obligation starts then, not when the money arrives.
IRD also states a second trigger: if you carry out a taxable activity and you add GST to the price of what you sell, you must be registered.
Should I register voluntarily below $60,000?
IRD confirms you can choose to register if your turnover is below $60,000. Whether you should depends on who your customers are:
| Your situation | Registering voluntarily is usually... | Why |
|---|---|---|
| Customers are GST-registered businesses | Sensible | They claim the GST back, so your price is effectively unchanged to them, and you recover GST on your own costs |
| Customers are private individuals | Often not worth it | Adding 15% makes you dearer than unregistered competitors, or you absorb it |
| Large start-up costs (vehicle, equipment, fit-out) | Worth modelling | You may recover the GST on those purchases, but you take on filing obligations |
| Turnover will clearly pass $60,000 soon | Register now | Avoids a mid-year switch and back-dated GST you did not collect |
How often do I file, and when is it due?
| Filing frequency | Who can use it | Returns per year |
|---|---|---|
| Six-monthly | Sales under $500,000 in any 12-month period | 2 |
| Two-monthly | Sales under $24 million in any 12-month period | 6 |
| Monthly | Anyone; compulsory once sales exceed $24 million in any 12-month period | 12 |
Returns and payment are due on the 28th of the month after the period ends, with two exceptions: the period ending 31 March is due 7 May, and the period ending 30 November is due 15 January.
Most small businesses also qualify for the payments basis (total sales $2 million or less), where you account for GST when money actually changes hands rather than when invoices are issued — kinder on cash flow.
What changes once I am registered?
- Your prices. Every taxable sale carries 15% GST. Tax invoices must show your GST number.
- Your bookkeeping. Every transaction needs a GST code. This is where Xero earns its subscription.
- Your cash. GST collected is not your money. Set it aside as you go, or the return becomes a scramble every two months.
- Your provisional tax dates. If you pay provisional tax, the instalment dates line up with your GST periods.
- Your assets on exit. If you later deregister and keep business assets, GST is generally payable on their market value — a trap for people who register, buy a van, then deregister.
Is it better to file six-monthly or two-monthly?
Six-monthly means fewer returns and lower accounting fees. Two-monthly means smaller payments and less chance of a large surprise bill. If you are consistently in a refund position (an exporter, or a business with heavy set-up costs), two-monthly or monthly gets the refund back sooner. We help clients choose when we set up their GST — see tax and GST returns.
FAQ
Do I have to register for GST if I earn under $60,000? No. Registration is compulsory only once turnover from your taxable activity reaches $60,000 in any 12-month period, looking back or forward. Below that you may register voluntarily, which tends to make sense when your customers are GST-registered businesses who can claim the GST back.
Is the GST threshold based on profit or sales? Sales. The $60,000 test is turnover from your taxable activity, before expenses. A business with $65,000 of sales and $10,000 of profit is over the threshold. Salary and wages from employment are not part of the calculation; only your business or contracting income counts.
What happens if I go over $60,000 and do not register? Inland Revenue can register you from the date you should have registered and treat your sales since then as including GST. You then owe 15/115ths of that income even though you never charged it. Registering as soon as you can see the threshold coming avoids this.
How often do I need to file a GST return in NZ? Six-monthly if sales are under $500,000 in any 12-month period, two-monthly if under $24 million, and monthly is compulsory above $24 million. Returns are due on the 28th of the following month, except the March period (due 7 May) and the November period (due 15 January).
Can an accountant file my GST returns for me? Yes. As IRD-registered tax agents we prepare and file GST returns for clients from $110 +GST per period. The return is prepared from your reconciled Xero file and reviewed by a Chartered Accountant before filing, and we track the due dates so you do not have to.
Talk to us
Not sure whether the threshold applies to you, or which filing frequency to choose? Book a free 15-minute consultation: call 021 202 4028, email info@optimalaccountants.co.nz, or use our contact page. Optimal Accountants Limited, Rosedale, Auckland — Chartered Accountant, CA ANZ member, English and Mandarin. See also our services.