What Is the GST Registration Threshold in New Zealand?

The GST registration threshold is $60,000 for businesses and entities carrying out a taxable activity.

You generally need to register for GST if:

• Your taxable-activity turnover was $60,000 or more during the previous 12 months; or
• You reasonably expect your taxable-activity turnover to reach $60,000 or more during the next 12 months.

You may also need to register if you carry out a taxable activity and add GST to the prices you charge, even if your turnover is below $60,000.

How Does the $60,000 GST Threshold Work?

The $60,000 figure is based on a 12-month period. Businesses should not simply look at their financial year and assume they only need to register once annual revenue reaches $60,000.

There are two important tests to consider:

1. The previous 12-month GST turnover test

You need to consider the value of your taxable supplies during the relevant previous 12-month period.

2. The next 12-month GST turnover test

You also need to consider what you reasonably expect your taxable supplies to be during the next 12 months.

This forward-looking test is particularly important for businesses that are growing rapidly or have recently secured a large contract.

What Is a Taxable Activity for GST Purposes?

The GST registration threshold applies to people and organisations carrying out a taxable activity.

A taxable activity generally involves an activity carried on continuously or regularly that involves, or is intended to involve, supplying goods or services to another person for consideration.

Examples can include:

• Retail businesses
• Professional services
• Consultants
• Contractors
• Tradespeople
• Freelancers
• Online businesses
• Hospitality businesses
• Certain property-related activities

Whether an activity qualifies as a taxable activity depends on the circumstances and the applicable GST rules.

Who Needs to Register for GST in NZ?

You generally need to register if you carry out a taxable activity and either your taxable turnover has reached the registration threshold or you reasonably expect it to reach the threshold during the next 12 months.

You may also become liable to register if you add GST to the prices you charge customers.

The GST registration rules can apply to different business structures, including sole traders, companies and other taxable activities.

Do You Need GST Registration If Your Business Makes Less Than $60,000?

Not necessarily.

If your taxable-activity turnover is below the GST registration threshold and you do not otherwise become liable to register, you may remain unregistered.

However, businesses carrying out a taxable activity can generally choose to register voluntarily.

Should You Voluntarily Register for GST?

Voluntary GST registration can make sense for some businesses, but it also creates additional compliance responsibilities.

Potential advantages of voluntary GST registration

• Potentially claim eligible GST on business purchases
• Operate within the GST system
• Potentially improve commercial credibility in some situations

Potential disadvantages

• GST return filing obligations
• GST payment obligations
• Additional record keeping
• Need to account for GST on taxable supplies
• Greater compliance administration

Voluntary registration should therefore be considered based on the circumstances of the business rather than simply because competitors are GST registered.

What Happens After You Register for GST?

Registering for GST creates ongoing tax and compliance obligations.

Charge GST on taxable supplies

You generally need to account for GST on taxable supplies once registered. New Zealand’s standard GST rate is 15%.

File GST returns

GST-registered businesses must file GST returns according to their applicable filing frequency.

Pay GST owing

Your GST return determines whether you have GST to pay or whether you are entitled to a refund.

Keep GST records

Businesses need to maintain appropriate records and taxable supply information to support their GST calculations and claims.

How Does GST Work After Registration?

GST is generally collected on taxable sales and offset against eligible GST paid on business purchases.

Actual GST calculations can be more complicated where a business has exempt supplies, adjustments, assets, imports or other special circumstances.

When Should a Growing Business Start Thinking About GST?

You should not necessarily wait until your turnover reaches exactly $60,000 before reviewing your GST position.

Businesses experiencing rapid growth should monitor both previous turnover and expected future taxable supplies.

A large contract or sudden increase in sales could affect whether GST registration becomes necessary.

How Does GST Registration Work for Businesses With Multiple Branches?

Businesses with separate branches or divisions may need to consider their activities together when determining whether GST registration is required.

In some circumstances, branches or divisions may be able to be registered separately, subject to the applicable GST rules.

Keeping activities in different locations does not automatically mean that each activity can be treated as being below the GST registration threshold.

GST Registration Rules for Joint Ventures

Joint ventures can involve additional GST considerations.

From 1 April 2026, changes apply to certain unincorporated joint ventures, including flow-through treatment in specified circumstances.

Where the relevant rules apply, members may need to consider the combined supplies of the joint venture when assessing the $60,000 registration threshold.

Joint venture structures should be reviewed carefully because the appropriate GST treatment depends on the arrangement and circumstances.

Does the GST Registration Threshold Apply to Overseas Businesses?

Certain non-resident businesses supplying goods or services into New Zealand can also have GST obligations.

Specific rules can apply to:

• Remote services
• Low-value imported goods
• Listed services
• Other supplies made in New Zealand

Overseas businesses should assess their New Zealand GST position based on the nature of their supplies and the applicable rules.

What Happens If You Exceed the GST Registration Threshold?

If your business becomes liable to register and you do not register when required, you may face additional tax and compliance issues.

Inland Revenue guidance states that when a person becomes liable to register, an application generally needs to be made within 21 days of becoming liable.

If you believe your business should have registered earlier, it is better to address the situation promptly rather than continue operating without reviewing the position.

In some circumstances, Inland Revenue may consider backdating a GST registration.

Can You Claim GST on Business Expenses?

A GST-registered business can generally claim eligible GST charged on goods and services purchased for its taxable activity.

However, not every business expense automatically qualifies for a GST claim.

You should consider:

• Whether the expense relates to your taxable activity
• Whether GST was charged
• Whether you have the required taxable supply information
• Whether special GST rules apply
• Whether an adjustment is required

GST Registration Threshold vs GST Rate: What’s the Difference?

The GST registration threshold and GST rate are two different concepts.

GST registration threshold

$60,000 is the key turnover threshold used to determine when compulsory GST registration may apply.

GST rate

15% is New Zealand’s standard GST rate for most taxable supplies.

In simple terms:

$60,000 = registration threshold

15% = standard GST rate

GST Registration Checklist for NZ Businesses

If your business is approaching the registration threshold, use this checklist:

• ☐ Do I carry out a taxable activity?
• ☐ What were my taxable supplies during the last 12 months?
• ☐ What do I reasonably expect my taxable supplies to be during the next 12 months?
• ☐ Am I approaching the $60,000 threshold?
• ☐ Have I accidentally added GST to my prices?
• ☐ Should I voluntarily register?
• ☐ Do I understand my GST filing obligations?
• ☐ Do I have a system for tracking GST?
• ☐ Am I keeping the required taxable supply information?
• ☐ Do I understand which expenses may qualify for GST claims?
• ☐ Do I know my GST filing and payment dates?
• ☐ Have I reviewed my GST position with an accountant?

Common GST Registration Mistakes NZ Businesses Make

Waiting until turnover reaches $60,000

The forward-looking 12-month test means you may need to register based on expected turnover before your previous 12 months’ turnover reaches $60,000.

Assuming every new business must register

Starting a business does not automatically mean GST registration is compulsory. The taxable activity and registration requirements need to be considered.

Adding GST before registering

If you add GST to your prices, you may become liable to register even if your turnover is below the normal threshold.

Ignoring GST because you are a sole trader

GST obligations can apply to sole traders. Your business structure does not automatically remove GST registration requirements.

Mixing business and personal expenses

Poor record keeping can make GST calculations and claims more difficult.

Ignoring rapid business growth

A major new contract or increase in sales can change your expected taxable supplies and affect your GST registration position.

What Should You Do If Your Business Is Near the GST Threshold?

If your business is approaching the GST registration threshold, do not wait until the last minute to review your position.

1. Review your taxable supplies for the previous 12 months.
2. Estimate your taxable supplies for the next 12 months.
3. Review upcoming contracts and expected sales.
4. Check whether GST has been added to your prices.
5. Review your accounting and record-keeping systems.
6. Understand your potential GST filing obligations.
7. Seek professional advice if you are unsure about registration.