If your business is growing, GST registration is one of the first compliance milestones you will hit - and it changes how you price, invoice, and deal with IRD. Whether you have crossed the $60,000 threshold or are thinking about registering early, this guide walks you through everything you need to know.
This guide is general information for NZ businesses, not tax advice - check ird.govt.nz or a chartered accountant for your situation.
What is GST?
GST stands for Goods and Services Tax. In New Zealand it is a 15% tax added to the price of most goods and services. Once you are registered, you collect GST on behalf of IRD from your customers, and you can claim back GST you have paid on your business expenses. At the end of each filing period, you pay IRD the difference between what you collected and what you claimed - or get a refund if you claimed more than you collected.
For most tradies and service businesses, 15% GST applies to everything you sell. A small number of supplies are zero-rated or exempt, but if you are doing building, plumbing, electrical, cleaning, or similar work, standard 15% GST applies across the board.
When you must register for GST
You must register for GST if your taxable turnover exceeded $60,000 in the last 12 months, or if you reasonably expect it to exceed $60,000 in the next 12 months. Turnover here means the total amount you charge customers - before deducting any expenses.
If you are just starting a business in NZ or becoming a sole trader, watch your revenue closely from day one. The registration obligation kicks in the moment you expect to hit $60,000 - you do not get to wait until you actually cross the line.
Failing to register when you are required to can mean IRD treats your past income as GST-inclusive anyway, so you end up paying GST out of your own pocket on money you already received. It is far better to get ahead of the threshold.
Voluntary registration - should you register below $60,000?
You can register for GST voluntarily at any point, even if your turnover is well below $60,000. The main reason to do this early is to claim GST back on your business purchases - tools, materials, vehicles, equipment, and subcontractors. If you spend a lot on inputs, voluntary registration can put real money back in your account each period.
The trade-off is compliance. Once you are registered, you must file GST returns on time, keep proper records, and add GST to your sales. If most of your customers are GST-registered businesses, adding GST is no problem - they claim it back. If your customers are private individuals, your prices look more expensive unless you absorb some of the cost yourself.
For most growing trade businesses, early voluntary registration makes sense. It also signals to clients and suppliers that you are running a legitimate, established operation.
How to register for GST via myIR
Registering for GST is straightforward through myIR, IRD's online services portal at ird.govt.nz. The process takes around 10 minutes if you have your details ready.
- Log in to myIR (or create an account if you do not have one yet).
- Select "I want to..." then "Register for new tax accounts".
- Choose GST from the list of tax types.
- Enter your business details and the date you want registration to start.
- Choose your filing frequency and accounting basis (covered below).
- Submit - confirmation usually comes through quickly.
You will need your IRD number. If you are a sole trader, this is your personal IRD number. If you have a company, it is the company's IRD number. If you have not yet decided on your structure, it is worth reading sole trader vs company first, as your structure affects how GST is handled.
Choosing your filing frequency
When you register, you choose how often you file GST returns. There are three options:
| Filing frequency | Eligible if annual turnover is... | Best for... |
|---|---|---|
| Monthly | Any amount | Businesses with frequent GST refunds or tight cash flow |
| Two-monthly | Under $24 million | Most small to medium businesses - the most common choice |
| Six-monthly | Under $500,000 | Very small businesses with simple, low-volume GST positions |
Most tradies and small service businesses use two-monthly filing. It keeps the admin manageable without monthly paperwork. If you regularly receive GST refunds - for example, because you buy a lot of materials - monthly filing means refunds land faster. IRD assigns a default frequency based on your turnover, but you can request a change through myIR at any time.
Choosing an accounting basis
Your accounting basis determines when you account for GST - when money changes hands, or when invoices are issued.
- Payments basis - you account for GST when you actually receive or make payment. Good for businesses that issue invoices but sometimes wait weeks to get paid.
- Invoice basis - you account for GST when an invoice is issued or received, regardless of when payment happens. Standard for most larger or more established businesses.
- Hybrid basis - you account for GST received on a payments basis but claim GST on purchases on an invoice basis.
Many new businesses start on the payments basis because it means you do not have to pay GST to IRD before your customer has actually paid you. Talk to your accountant about which suits your cash flow situation best.
Charging GST and GST-inclusive pricing
Once you are GST-registered, you must charge GST on your taxable supplies. The simplest approach is to quote and invoice GST-inclusive prices, with the GST component shown separately on the invoice.
Use our free GST calculator to quickly add or remove 15% GST from any amount - it is useful when quoting on the fly or checking supplier invoices. Your invoices also need to meet IRD's requirements for tax invoices once you are registered: they must include your GST number, the date, a description of the goods or services, and the GST amount. Our invoice generator produces compliant tax invoices in seconds.
Filing your GST returns
Each filing period, you add up the GST you collected on sales (output tax) and subtract the GST you paid on business expenses (input tax). If output tax is higher, you pay the difference to IRD. If input tax is higher, you get a refund.
File your return through myIR by the due date for your period. Late filing and late payment both attract penalties and interest. Keep good records - invoices, receipts, and bank statements. IRD can audit GST returns, and without a valid tax invoice you cannot claim GST on purchases over $50.
Common GST mistakes to avoid
- Not registering on time - crossing $60,000 without registering means you may owe GST on past income you never collected from customers.
- Forgetting GST on quotes - if your quote is GST-exclusive and you fail to add 15%, you absorb the cost yourself.
- Claiming GST on private expenses - you can only claim the business portion of mixed-use expenses.
- Missing return due dates - late filing penalties accumulate quickly.
- No tax invoices for expenses - without one, you cannot claim GST on purchases over $50.
Protect your business while you are setting it up
Getting your GST right is a key part of running a compliant, professional business - but compliance does not stop with tax. As you build your business on solid ground, it is also worth making sure you are covered if something goes wrong. Take time to read about types of business insurance and understand the risks of running a business uninsured - two areas that catch out a lot of new NZ business owners who focus on the tax setup but overlook protection.
Frequently asked questions
Do I have to register for GST?
You must register for GST if your taxable turnover exceeded $60,000 in the last 12 months or you expect it to exceed $60,000 in the next 12 months. Below that threshold, registration is optional. If you are required to register but do not, IRD can still assess you for the GST you should have collected and remitted.
What is the GST threshold in NZ?
The compulsory GST registration threshold in NZ is $60,000 of taxable turnover in any 12-month period. This applies to both actual past turnover and reasonably expected future turnover. If you hit this figure - or expect to - you need to register promptly rather than waiting until the end of your financial year.
Should I register voluntarily for GST?
Voluntary registration makes sense if you spend a lot on GST-inclusive purchases - materials, tools, subcontractors - because you can claim that GST back. It also works well if most of your customers are GST-registered businesses who can claim the GST you charge them. The downside is increased compliance obligations, so weigh the potential refunds against the admin before deciding.
How do I register for GST in NZ?
You register through myIR at ird.govt.nz. Log in, select the option to register for a new tax account, choose GST, and follow the prompts. You will need your IRD number and to choose your filing frequency and accounting basis. Registration usually takes effect quickly once submitted, and you will receive confirmation through myIR.
Can I change my GST filing frequency after I register?
Yes, you can request a change to your filing frequency through myIR. IRD will assess your request based on your turnover and circumstances. Most small businesses qualify for two-monthly or six-monthly filing, which reduces how often you need to prepare and submit returns - and can make the compliance side of GST much easier to manage.