NZ GST DECISION GUIDE

GST filing & accounting basis

Check how often your business can file and whether payments or invoice basis is likely to suit your cash flow and bookkeeping.

01 · FILING FREQUENCY

How often should you file?

Taxable supplies in any 12-month period

YOUR ELIGIBLE FREQUENCY

6-monthly, 2-monthly or monthly

You are eligible for 6-monthly filing. Many active businesses still choose 2-monthly to keep records and cash flow more current.

02 · ACCOUNTING BASIS

When should GST be recognised?

When do customers usually pay?Days or weeks after invoicingImmediately or at point of sale

Our accounts are managed on an accrual basisIncome and expenses are recorded when invoiced, not only when paid.

LIKELY BEST FIT

Payments basis

This usually protects cash flow because you account for GST when customers pay you, rather than before the money arrives. Your turnover is within the $2 million eligibility limit.

COMPARE THE OPTIONS

Payments, invoice or hybrid?

Payments basis

Return GST on customer payments received and claim GST on supplier payments made.

Available when sales are $2m or less.

Invoice basis

Return GST when you invoice or receive payment, whichever happens first. Supplier GST may be claimable when invoiced.

Available to any GST-registered business.

Hybrid basis

Use invoice basis for sales and payments basis for expenses. This can create cash-flow pressure and is not commonly used by small businesses.

Available to any GST-registered business.

This guide is general information. Confirm a basis change in myIR or discuss it with your accountant.

Read the official IRD guidance ↗