In New Zealand, GST (Goods and Services Tax) is charged at 15% on most supplies of goods and services. Once your taxable turnover crosses NZ$60,000 in any 12-month window — looking backward or forward — registration becomes compulsory. Miss the date and IRD can charge GST on your supplies retrospectively, plus interest and penalties. This checker tells you which side of the line you are on and when you need to act.
The NZ$60,000 threshold: what counts
The threshold applies to your taxable turnover — the total value of taxable supplies you make, not your profit. Certain supplies do not count toward the threshold:
- Exempt supplies — financial services, residential renting, and certain donations are GST-exempt and excluded.
- Capital asset sales — selling a business asset (a van, machinery, a building used in the business) does not count toward the $60,000 turnover test.
- Winding-up supplies — supplies made as part of ceasing a business are also excluded.
If your income comes from a mix of taxable and exempt supplies, only the taxable portion counts.
The two-way 12-month test
IRD applies both a backward-looking and a forward-looking test simultaneously:
Backward test (past 12 months)
Count the total taxable supplies made in the past 12 calendar months. If the total exceeds NZ$60,000, you became liable at the end of that 12-month period. You must register within 21 days of reaching that point.
Forward test (next 12 months)
If at any point you can reasonably expect your taxable turnover for the next 12 months to exceed NZ$60,000, you are liable to register from the date you formed that expectation. “Reasonably expect” is a practical standard — a signed contract or confirmed project backlog that pushes you over the threshold is sufficient.
You can trigger the forward test before you have actually crossed NZ$60,000 in prior sales, if your pipeline clearly will.
Voluntary registration below NZ$60,000
Businesses with turnover below NZ$60,000 may still register voluntarily. The main reason to do so is to reclaim GST on your business purchases (input tax). If you buy equipment, materials, or services with GST charged on them, registering lets you claim those amounts back on your GST returns.
Once registered voluntarily, you must:
- Charge GST on your taxable supplies
- File GST returns (monthly, two-monthly, or six-monthly depending on turnover)
- Stay registered for a minimum period (typically until you no longer make taxable supplies)
Voluntary registration makes the most sense when your input GST is substantial relative to your output GST — for example, capital-intensive businesses in their startup phase.
Registering with IRD
Register through myIR (IRD’s online services portal). You will need your IRD number and details about your business and expected turnover. The registration takes effect from the date you become liable (or, for voluntary, from the date IRD accepts it). You have 21 days after becoming liable to register; penalties for late registration can include being treated as if you were registered from the date liability arose, which may create a backdated GST obligation.
Example scenarios
| Scenario | Outcome |
|---|---|
| Freelancer earned NZ$72,000 in fees last 12 months | Compulsory — must register now, 21 days to do so |
| Consultant projecting NZ$80,000 next 12 months | Compulsory — register within 21 days of forming that expectation |
| Side business with NZ$18,000 in sales | Below threshold — voluntary registration optional |
| Startup with NZ$40,000 revenue but NZ$20,000 in GST-bearing costs | Below threshold but voluntary may recoup meaningful input GST |
This is a screening tool, not tax advice. Non-residents, associated-person groupings, and businesses with mixed taxable/exempt supplies face additional rules. Confirm your position with IRD guidance or a chartered accountant (CA) before registering or de-registering.