The video is on its way. The full guide is right here: the short answer, the takeaways, the answers and the sources.
Photo for illustration only; it isn't a business in this episode. Photo: Kampus Production, Pexels License.
Money · Explained
Do I need to register for GST?
The short answerYou must register for GST with Inland Revenue if your business turnover was $60,000 or more in the last 12 months, or you expect it to reach $60,000 in the next 12. Below that, registering is optional. Once registered, you charge 15% GST on most sales, claim it back on business costs and file regular returns.
Key takeaways
- The $60,000 line is about turnover, not profit.
- The test looks back 12 months and forward 12 months. Either one can mean you must register.
- Below $60,000 registering is optional, and can pay off if you buy a lot of gear or sell to other businesses.
- The GST inside a GST-inclusive price is 3/23 of it: $115 includes $15.
- Move the GST part of every sale into a separate account the day it lands.
General information, not financial or legal advice. Rules and rates change, so check the official sources below or talk to a qualified adviser before you act.
What's in the video?
- 0:00The $60,000 line
- 0:12Turnover, not profit
- 0:24Looking back and looking forward
- 0:38Registering when you don't have to
- 0:52The 3/23 trick
- 1:04The second-account habit
Timings are from the planned script and may shift in the edit.
The full guide
Goods and Services Tax is the 15% that sits on most things bought and sold in New Zealand. If you run a business, at some point you'll need to decide whether you're collecting it. Here's the short version, then the detail.
The short version: if your business turnover was $60,000 or more in the last 12 months, or you expect it to be $60,000 or more in the next 12 months, you must register for GST with Inland Revenue (IRD). Below that, registering is optional.
When do I have to register for GST?
The threshold is about turnover, not profit. Turnover means the total value of the goods and services you sell (excluding GST itself, and a few exempt types of income). A café that takes $65,000 at the till but makes a loss is still over the line.
IRD looks at it two ways, and either one can trigger registration:
- Looking back: your turnover over the past 12 months was $60,000 or more.
- Looking forward: you expect your turnover over the next 12 months to be $60,000 or more.
The forward-looking test catches people out. If you've just signed a big contract or opened a second site, you may need to register before the money actually arrives.
Should I register when I don't have to?
You can register voluntarily below $60,000. People usually do it because:
- You can claim GST back on your costs. If you're buying equipment, stock or fit-out, being registered lets you claim the GST on those purchases.
- Your customers are businesses. GST-registered customers can claim the GST you charge them, so adding it doesn't really cost them anything.
- It can look more established to some business customers.
The trade-off is admin: you'll file regular GST returns, and if your customers are mostly consumers, adding 15% may mean raising prices or absorbing the cost. Talk to an accountant if you're unsure which way to go.
What changes once I'm registered?
- You charge GST on taxable sales and pass it on to IRD.
- You claim GST on business purchases, with the right records to back it up.
- You file GST returns on a schedule (monthly, two-monthly or six-monthly). Six-monthly filing is only available to businesses under a turnover limit set by IRD.
- You choose an accounting basis. This decides when you count a sale or purchase: when it's invoiced, when it's paid, or a mix. Some options depend on your turnover.
- You keep records of the sales and purchases you charge and claim GST on. IRD updated its record-keeping requirements for GST in 2023, so check its current guidance on what information you need to keep.
How do I work out the GST in a price?
To find the GST inside a GST-inclusive price, multiply by 3 and divide by 23 (that's the same as 15/115).
| Price incl. GST | GST component | Price excl. GST |
|---|---|---|
| $115.00 | $15.00 | $100.00 |
| $46.00 | $6.00 | $40.00 |
| $230.00 | $30.00 | $200.00 |
How do I keep the GST money aside?
Open a separate bank account and move the GST portion of every sale into it as it lands. When your return is due, the money's already sitting there and it never felt like yours to spend. It's not a legal requirement, just the cheapest stress reduction we know of.
How do I register?
You register for GST online through myIR, IRD's online service. You'll need your IRD number, your business details (including your New Zealand Business Number if you have one), an estimate of your turnover, and your choice of filing frequency and accounting basis. Start at IRD's Registering for GST page.
Questions owners ask
Is the $60,000 GST threshold based on profit or turnover?
Turnover. Inland Revenue looks at the total value of the goods and services your business sells, not what's left after costs. A New Zealand café that takes $65,000 at the till but runs at a loss is still over the line and must register for GST. Exempt supplies, such as residential rent, aren't counted towards the total.
Do I have to register for GST before I reach $60,000?
You do if you expect to cross it. IRD's test looks forward as well as back: if you reasonably expect your turnover over the next 12 months to be $60,000 or more, you must register, even before the money arrives. A big new contract or a second site are the usual triggers. If you're unsure, check with IRD or your accountant.
Can I register for GST voluntarily in New Zealand?
Yes. Any business can register below the $60,000 threshold. Owners usually do it to claim back the GST on big set-up costs like equipment, stock or fit-out, or because their customers are GST-registered businesses that can claim the GST back themselves. The catch is regular GST returns, and possibly higher prices for customers who can't claim it.
How do I work out the GST in a GST-inclusive price?
Multiply the price by 3, then divide by 23. That gives you the 15% GST inside a GST-inclusive amount, the same as dividing by 115 and multiplying by 15. So $115 includes $15 of GST, and $46 includes $6. To add GST to a price that doesn't include it yet, multiply the price by 1.15.
How often do I have to file GST returns?
You choose a filing frequency when you register with Inland Revenue: monthly, two-monthly or six-monthly. Six-monthly filing is only open to businesses under a turnover limit set by IRD, and businesses with very large turnovers must file monthly. Pick the option that suits your cash flow and record keeping, and check IRD's current limits before you choose.
How do I register for GST?
Online, through myIR, Inland Revenue's online service. You'll need your IRD number, your business details (including your New Zealand Business Number if you have one), an estimate of your turnover, and your choice of filing frequency and accounting basis. Start at the Registering for GST page on ird.govt.nz. IRD doesn't charge to register.
What happens if I don't register for GST when I should have?
Inland Revenue can backdate your registration to the date you should have registered. That means you may owe GST on sales made since then, even if you never charged your customers for it, plus possible penalties and interest. If you think you've already crossed the threshold, register now and talk to an accountant about the earlier period.
Where's this from?
First published 2 November 2026. Checked against these sources and updated 6 November 2026 by MySMB Editorial. Spotted a mistake? Tell us and we'll fix it.
Planned script
Read the planned script
Planned script for the 75-second episode. The video is in production.
Do you need to register for GST? Here's the sixty-second version.
The line is sixty thousand dollars. If your business turned over sixty grand or more in the last twelve months, or you expect it to in the next twelve, you have to register with Inland Revenue.
Turnover, not profit. A café that takes sixty-five thousand at the till and still runs at a loss? Over the line.
And the test looks forward. Signed a big contract, or opening a second site? You may need to register before the money arrives.
Under sixty thousand, it's your call. Registering lets you claim GST back on what you buy, and business customers can claim back what you charge them. The trade-off is regular returns.
Quick maths: the GST inside any GST-inclusive price is three twenty-thirds. A hundred and fifteen dollars includes fifteen dollars of GST.
And the habit that saves the most stress: every time a sale lands, move the GST into a separate account. It was never your money.
The full story, with IRD's own links, is at mysmb.co.nz. General information, not advice.
