When do I need to register for GST in New Zealand and what is the NZ$60,000 threshold?

In New Zealand, you must register for Goods and Services Tax (GST) if your business turnover exceeds or is expected to exceed NZ$60,000 in any 12-month period. This threshold applies to both domestic and foreign businesses making taxable supplies in New Zealand.

When registration is compulsory:

• Your taxable supplies (sales) have exceeded NZ$60,000 in the past 12 months, OR
• You expect your taxable supplies to exceed NZ$60,000 in the next 12 months

When registration is voluntary:

• If your turnover is below NZ$60,000, you can choose to register voluntarily. This can be beneficial if you make significant GST-inclusive purchases, as you can claim input tax credits to recover the GST you pay on business expenses.

How to register:

• Register online through your myIR account at ird.govt.nz
• You will need your IRD number and business details
• Choose your filing frequency (monthly, two-monthly, or six-monthly) and accounting basis (invoice or payments basis)

Key responsibilities once registered:

• Charge GST at 15% on your taxable goods and services
• File GST returns on time according to your chosen frequency
• Keep accurate records of all GST collected and paid
• Issue tax invoices for supplies over NZ$50

Important: If your turnover drops below NZ$60,000, you can apply to deregister, but you do not have to. Registration processing can take approximately one month, so plan ahead if you are approaching the threshold.