Do I need to register for GST?
You must register for GST if your turnover reaches $60,000 in any 12-month period. You can also choose to register voluntarily before you hit that threshold.
When registration is compulsory
You are required to register for GST if:
- Your total taxable turnover in the last 12 months was $60,000 or more, or
- You expect your turnover to reach $60,000 or more in the next 12 months
"Turnover" means your total income from taxable supplies — this includes sales, services, and any other business income. It does not include income that is exempt from GST (such as most financial services and residential rent).
Voluntary registration
You can register for GST even if your turnover is below $60,000. This can make sense if:
- Your customers are GST-registered businesses (they can claim back the GST you charge)
- You have significant business expenses and want to claim the GST back
- You want to appear more established to clients
Once registered, you must charge and return GST to IRD regardless of your income level.
Choosing your filing frequency
When you register, you choose how often you file your GST returns:
| Frequency | Best for |
|---|---|
| Monthly | Businesses expecting frequent GST refunds |
| Two-monthly | Most small businesses — a good balance |
| Six-monthly | Very small businesses with turnover under $500,000 |
Choosing your accounting basis
You also choose how you record GST:
- Payments basis — you account for GST when money is actually received or paid. Good for cash flow as you only pay GST after your customer has paid you.
- Invoice basis — you account for GST when invoices are issued or received, regardless of when payment happens.
- Hybrid basis — invoice basis for sales, payments basis for expenses.
For most sole traders starting out, the payments basis is the simplest option.
How to register
Register for GST through myIR at ird.govt.nz. You'll need your IRD number and basic business details.
What if you don't register in time?
If you don't register when required, IRD can charge the GST you should have collected, plus penalties and use-of-money interest. It's important to monitor your revenue and register as soon as you approach the threshold.
💡 Lodg can register you for GST and file your returns on your behalf — so you never have to think about it.
Source: ird.govt.nz — Registering for GST | ird.govt.nz — Which GST accounting basis and filing frequency should I use? | business.govt.nz — GST