Does your business need to register for GST in New Zealand?
GST is a 15% tax added to the price of most goods and services in New Zealand. Whether you have to charge it comes down to one number — and getting the timing wrong is an expensive mistake to unwind.
Goods and Services Tax applies to almost everything sold in New Zealand. If you run a business here, or sell goods and services into the country, GST may well apply to you. Deciding whether to register is one of the first real tax decisions a business owner makes, and one of the easiest to get wrong.
- Registration is compulsory at $60,000 turnover in any 12-month period
- That is looking back over the past 12 months, or forward to the next 12
- You have 21 days from the point you realise you will cross it
- Below $60,000 you can register voluntarily — sometimes worth it, often not
- Once registered you charge GST, file returns, and claim GST back on costs
1. The $60,000 threshold
You must register for GST if you are carrying out a taxable activity and your turnover is $60,000 or more in the past 12 months, or you reasonably expect it to reach $60,000 in the next 12 months.
The forward-looking half of that rule is the one people miss. If you sign a contract in June that will clearly take you past $60,000 by the following June, the obligation starts then — not when the money actually lands. You can work out where you sit with our free GST calculator.
2. What counts as a taxable activity
A taxable activity means regularly supplying goods or services for payment. That covers far more than a shopfront:
- Selling products, online or in person
- Consulting, contracting and freelance work
- Leasing commercial property
- Running online or subscription services
Turnover means your gross sales — not your profit. A contractor billing $70,000 who takes home $45,000 after expenses is still over the threshold.
3. When you must register below $60,000
If you already add GST to your prices, Inland Revenue expects you to be registered, regardless of turnover. Charging GST while unregistered is a straightforward compliance problem. Some industries, and certain online marketplaces, also have their own rules.
4. Overseas and non-resident businesses
Non-resident businesses supplying more than $60,000 into New Zealand in a 12-month period may need to register and collect GST. Remote digital services, low-value imported goods and marketplace sales all have specific rules that can trigger registration well before you have any physical presence here.
5. Should you register voluntarily?
Under $60,000 it is your choice, and the answer depends on who your customers are.
| Your situation | Usually |
|---|---|
| You sell mainly to GST-registered businesses | Register |
| Heavy spending on stock or equipment | Register |
| You sell mainly to the public | Wait |
| Low costs, small margins, few expenses | Wait |
Selling to businesses, GST is invisible to your customer — they claim it back — while you get to claim GST on your own costs. Selling to the public, adding 15% either raises your price or cuts your margin.
6. What changes once you register
- You charge GST on all taxable sales
- You file GST returns on your chosen frequency
- You pay IRD the net GST, or receive a refund
- You keep records that support every figure on the return
GST you collect is not revenue. It sits in your bank account looking like yours until the return is due. Six-monthly filing makes this worse, because you hold it longer. Move it to a separate account the day it arrives and the problem disappears.
The bottom line
Once you meet the rules, registration is not optional and backdating is messy. If you are approaching $60,000, or unsure whether what you do counts as a taxable activity, get it checked before you cross the line rather than after.
General information current at August 2026, not tax advice. Thresholds are from Inland Revenue. Check your own position with us or in myIR before acting.
Not sure whether you need to register?
We handle GST registration, set the right filing frequency and accounting basis, and file every return on time. The first conversation is free.
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