Work out whether you must register for New Zealand GST

What is GST?

Goods and Services Tax (GST) is a tax based on the consumption of goods and services and is built into the amounts charged for these items. At present, the amount of this tax is 15.0%. People who are registered for GST must charge and collect this tax on behalf of the Government and pay it to the Inland Revenue Department.

GST Registration.

You are required to register for GST with the Inland Revenue if you are carrying on a taxable activity and your turnover for the last 12 months was more than $60,000 or your turnover for the next 12 months will be more than $60,000. If your turnover does not or will not exceed the $60,000 limit you can choose to register for GST, this is referred to as a voluntary registration.

Exception.

You are not obliged to register for GST if your turnover exceeds $60,000 because you sell plant or other capital assets when you are:

  • Ceasing any taxable activity
  • Substantially or permanently reducing the scale of any taxable activity, or
  • Replacing the plant or assets.

Calculate whether you must register for GST.

To calculate whether you must register for GST download our free GST Registration Calculator

Important.

If you’re required to register for GST, you must apply within 21 days of becoming liable. The timeframe is based on self-assessing your situation. Inland Revenue may charge penalties if you fail to register. Depending on the scale of your business GST can be a very complex. To discuss GST Registration, the filing of your GST Returns and associated dealings with Inland Revenue please Contact Us

Disclaimer: This publication has been carefully prepared, but it has been written in general terms only. The publication should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.

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