NZ Company GST Registration: Complete Guide for 2026

The GST Registration Threshold in 2026

In New Zealand, GST registration is compulsory when your business turnover exceeds NZ$60,000 in any 12-month period, or when you expect to exceed this amount in the next 12 months. Turnover means total sales before GST, not profit. A consulting company invoicing NZ$5,500 per month will cross the threshold at month 11. If you wait until you actually cross it before registering, you may owe backdated GST from the point you were required to register.

You can register voluntarily at any time before reaching the threshold. Many new companies register from day one to recover GST on setup costs: laptops, office furniture, subscriptions, and professional fees. If your startup costs exceed NZ$1,000 including GST, voluntary early registration is almost always worth it.

Which Filing Frequency Should You Choose

Monthly. File and pay every month. Best for high turnover businesses, frequent large purchases, or businesses that regularly receive GST refunds such as those with significant capital expenditure.

Two-monthly (bimonthly). The most common option for small businesses. Returns cover two months and are due the 28th of the following month. Balances compliance burden with reasonable cashflow timing.

Six-monthly. Only available if annual turnover is under NZ$500,000. One return per six-month period. Lowest compliance burden but requires careful cash reserves for the lump sum payment.

Most new companies start on two-monthly filing. You can apply to change frequency through myIR.

How to Register

Register through myIR at ird.govt.nz. You will need your company IRD number and your company details including the date you expect to exceed the threshold or the date you want voluntary registration to begin. Processing typically takes 2 to 5 working days. Your GST registration number must appear on all tax invoices you issue.

You also need to choose your GST accounting basis. Invoice basis: you account for GST when you issue or receive invoices. Payments basis: you account for GST when cash actually changes hands. Most accountants recommend invoice basis for clean matching with your accounts, but payments basis helps cashflow if you invoice on long payment terms. New businesses with turnover under NZ$2 million can choose either.

What a Tax Invoice Must Include

Every tax invoice you issue must include: the words Tax Invoice, your name and GST number, the date, a description of goods or services, the total amount including GST, and the GST amount separately. For invoices under NZ$1,000, a simplified invoice without buyer details is acceptable. Above NZ$1,000 you must also include the buyer name and address.

Common Mistakes New Directors Make

Not registering on time. If IRD audits you and finds you should have registered earlier, they assess GST on historic sales plus use-of-money interest and potentially a penalty.

Not keeping a GST reserve account. Every time you raise a GST-inclusive invoice, 15/115 of the total is GST you owe IRD. Set it aside in a separate bank account so you are never caught short at return time.

Claiming GST on non-deductible expenses. Entertainment is only 50% claimable for GST. Private use of a business asset must be adjusted out. IRD focus on these areas in audits.

Confusing GST with income tax. GST is separate from provisional tax and income tax. Late GST payments attract a 1% initial penalty plus 4% monthly penalties.

Working With Your Accountant

GST is one of the first reasons new company directors engage an accountant. A good accountant will set up your Xero or MYOB file with correct GST codes, review your first few returns, and flag if your filing frequency should change as your business grows.

If you are a new company looking for an accountant in your region, FreshFirms connects you with local accounting and bookkeeping firms that specialise in new companies. Find a local accountant today.