NZ GST Registration Threshold 2026: When to Register Your New Company

What is the GST threshold in New Zealand?

If your new NZ company earns (or expects to earn) more than NZ$60,000 in any 12-month period, you must register for GST. This is the legal threshold under the Goods and Services Tax Act 1985, and it has not changed in several years.

Most actively trading companies hit this number within their first year. The key word is expected: you can register voluntarily even if you have not yet reached $60,000, and many advisors recommend doing so from day one to maximise input tax credits.

When does the 12-month period start?

The IRD looks at a rolling 12-month window, not a tax year. If your turnover for any consecutive 12 months exceeds $60,000 — past or projected — you are required to register within 21 days of realising you will breach the threshold.

A common trap for new directors: you receive a large contract in month three, and your projected annual revenue now exceeds $60k. You have 21 days from the date that projection becomes clear, not from when the money arrives.

What is the penalty for not registering?

Failing to register when required is treated as tax evasion. Penalties include:

• A shortfall penalty of 20–150% of the unpaid GST
• Interest on unpaid amounts (currently around 10.91% per year)
• Possible prosecution for deliberate non-compliance

The IRD does allow voluntary disclosure, which can significantly reduce penalties. However, you need an accountant to navigate this correctly.

Voluntary GST registration: should you register early?

Many new NZ companies register for GST from the start, even before hitting $60,000. Reasons to register early:

• Input tax credits: You can claim GST back on business expenses (equipment, software, rent, professional fees) from the moment you register. If you are spending heavily to set up, this can mean thousands of dollars back from the IRD.
• Credibility: B2B clients expect GST-registered suppliers. An invoice without GST can raise questions.
• Simplicity: Starting with GST from day one avoids a mid-year systems change.

The downside: you must file regular GST returns (monthly, two-monthly, or six-monthly) and charge GST on all your sales. If your customers are end consumers rather than businesses, this makes you 15% more expensive unless you absorb the tax.

How to register for GST

1. Log in to myIR (the IRD’s online portal) with your company’s IRD number.
2. Select “Register for a new tax type” and choose GST.
3. Choose your filing frequency (monthly recommended for most new companies).
4. Select your accounting basis (invoice or payments — invoice is standard).
5. Your GST number is your IRD number with a “GST” suffix.

Your accountant or bookkeeper can do this for you and ensure the settings are correct from the start.

How accountants help new companies with GST

A good accountant will:

• Register you at the right time (not too early, not too late)
• Set up your accounting software (Xero, MYOB) to handle GST automatically
• Ensure your invoices include the correct GST line items and your IRD number
• File your GST returns on time and chase any refunds owed
• Advise on the best filing frequency for your cash flow

New companies in Auckland, Wellington, Christchurch and across New Zealand are incorporating every day — and most need an accountant within their first week of trading.

What next?

If you have just incorporated your NZ company and are not sure whether to register for GST, the safest step is a 30-minute conversation with a local accountant. Most will give you initial advice at no charge.

Find a chartered accountant for your new company →