For calculating GST credits if registered
GST Registration Required
Your turnover exceeds the $60,000 threshold.
$55,000.00 / $60,000.00 (92%)
Your projected turnover of $75,000.00 will exceed the threshold. You should register for GST before reaching $60,000.00.
GST registration threshold
You must register for GST if your business has a GST turnover of $60,000 or more in any 12-month period. This is lower than Australia's $75,000 threshold. GST turnover is your gross business income.
Projected turnover rule
You must also register if at any point your projected GST turnover for the next 12 months is likely to exceed $60,000. This means you should register before actually reaching the threshold if growth is expected.
GST credits & input tax
Once registered, you can claim credits for GST included in the price of business purchases. Your net GST payable is the difference between GST collected on sales and GST paid on purchases. This is reported on your GST return.
IRD Requirement: You must register within 21 days of exceeding the threshold. Failure to register when required can result in penalties. You can register voluntarily at any time through myIR.
When you must register, how it works, and what it means for your business
When do I need to register for GST?
You must register for GST if your business turnover has exceeded NZ$60,000 in the past 12 months, or you expect it to exceed NZ$60,000 in the next 12 months. Turnover means your total sales, not your profit. If you earn NZ$5,500 per month, you will hit the threshold in about 11 months and need to register.
Can I register for GST voluntarily?
Yes. Even if your turnover is below NZ$60,000, you can choose to register. This is useful if you have large business expenses — you can claim back the GST on those purchases. For example, if you buy NZ$10,000 of equipment, you can claim back NZ$1,304.35 in GST. The trade-off is that you must charge GST on all your sales.
What is the GST rate in New Zealand?
The standard GST rate is 15%. When you add GST to a NZ$100 product, the GST-inclusive price is NZ$115. To work out the GST in a price that already includes GST, multiply by 3 and divide by 23. For example, the GST in a NZ$230 item is NZ$30.
How often do I file GST returns?
Most businesses file every two months (six returns per year). If your turnover is above NZ$24 million, you must file monthly. If your turnover is below NZ$500,000, you can choose to file every six months. Each return is due on the 28th of the month following the end of your filing period.
What is the difference between invoice basis and payments basis?
On the invoice basis, you account for GST when you issue or receive an invoice, even if you have not been paid yet. On the payments basis, you account for GST when the money actually changes hands. The payments basis is often better for small businesses because you do not have to pay GST on invoices your customers have not paid yet. You can use payments basis if your turnover is under NZ$2 million.
What can I claim GST back on?
You can claim back GST on any business expense that includes GST, as long as you have a valid tax invoice. Common claims include office supplies, equipment, vehicle expenses (business portion), professional services, software subscriptions, and travel costs. You cannot claim GST on private expenses, exempt supplies, or purchases from non-GST-registered sellers.
What happens if I do not register when I should?
If you pass the NZ$60,000 threshold and do not register, IRD can backdate your registration and charge you the GST you should have collected. You may also face penalties and interest. IRD can register you themselves if they discover you should be registered. It is much cheaper to register on time.
How do I register for GST?
You can register online through myIR (IRD online services). You will need your IRD number, details about your business activity, your expected turnover, and your preferred filing frequency. Registration usually takes a few days. Once approved, you will receive a GST number and can start charging GST on your invoices.
IRD-Aligned: Based on 2025 IRD rates and thresholds. For personal advice, speak to a qualified tax agent.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms
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