GST Registration for New NZ Companies: When to Register and What to Expect

One of the first tax questions for a newly incorporated NZ company is when to register for GST. Getting this wrong can mean unexpected tax bills or missed refund opportunities. Here is what you need to know.

The $60,000 threshold

You are required to register for GST if your taxable turnover exceeds or is likely to exceed NZ$60,000 in any 12-month period. This includes income from goods and services sold in New Zealand.

Even if you expect to be below this threshold in year one, many accountants recommend voluntary registration because it lets you claim GST back on business expenses from day one.

Voluntary GST registration

If you are spending money on equipment, software, vehicles, or premises before revenue kicks in, voluntary GST registration can result in significant refunds. Most new companies that plan to grow beyond $60,000 in year two register voluntarily in month one.

Filing periods

New GST registrants are typically assigned a two-monthly filing period. After a year or more of compliance history, you can apply to switch to a six-monthly period if your turnover allows it.

What you need to register

• IRD number for the company (separate from the director's personal IRD number)
• Bank account in the company's name
• Contact details for IRD correspondence
• A description of the business activities

Getting help from an accountant

GST registration and the first few returns are straightforward but easy to get wrong. An accountant or bookkeeper can register you, set up Xero or MYOB, and make sure your first return is correct. Many NZ accounting firms offer a fixed-fee onboarding package for new companies.

If you are looking for an accountant, FreshFirms Connect matches new NZ companies with local accountants, bookkeepers, and advisors. Fill out a short form and a qualified professional in your region will be in touch.