When do NZ sole traders need to register for GST?
You must register for GST in New Zealand if your annual taxable supplies (turnover) exceed NZ$60,000 in any 12-month period, or if you expect them to exceed NZ$60,000 in the next 12 months. Once registered, you must charge 15% GST on your taxable sales and can claim back GST on your business purchases. You will need to file regular GST returns — most businesses with turnover under NZ$500,000 file two-monthly (bi-monthly) returns, due by the 28th of the month after the end of each period. GST registration is voluntary below NZ$60,000, but there can be advantages to registering early — particularly if you have significant business expenses on which you can claim GST back.
- Compulsory registration threshold: NZ$60,000 annual turnover
- GST rate: 15%
- Most small businesses: bi-monthly (2-monthly) returns
- Returns due 28th of the month after period end
- Voluntary registration allowed below NZ$60,000