Do I Need to Register for GST in NZ? The $60,000 Threshold Explained (2026)

You must register for GST once your taxable turnover has exceeded or you reasonably expect it to exceed, $60,000 in any rolling 12 month period — not a calendar or tax year. The obligation starts the moment you expect to cross that threshold giving you 21 days to register, not 21 days after you have already gone over.

Already registered and just need the numbers? Use our free GST Calculator to add or remove GST instantly, including a multi-item invoice builder.

This guide provides general information only, not tax advice. Confirm your specific registration obligation with Inland Revenue or a tax professional.

The $60,000 Threshold — What Actually Counts

The $60,000 figure is your taxable turnover — total GST-exclusive revenue from taxable supplies — not profit. It’s checked against a rolling 12-month window, meaning IRD looks at any 12 consecutive months, not your calendar year or financial year. A business could cross the threshold in month 7 of trading and be required to register immediately, well before any annual figure would suggest it.

What counts toward the $60,000	What doesn’t count
Sales of taxable goods and services	Wages/salary as an employee (your employer handles tax)
Most business income, GST-exclusive	Exempt supplies (e.g., residential rent, most financial services)
Expected future income you can reasonably forecast	Personal, non-business income

Why the “Reasonably Expected” Rule Catches People Out

You don’t need to have already earned $60,000 — you need to register the moment you reasonably expect to cross that threshold within the next 12 months. This commonly trips up businesses that land one large contract: if a single job or client agreement will push your turnover over $60,000, you’re required to register before you invoice for it, not after.

Real consequence of getting this wrong: if you should have registered and charged GST but didn’t, you can become personally liable for the GST you failed to collect — IRD can still require you to pay it, even though you never charged your customer for it.

When Registration Is Optional (Voluntary Registration)

Below $60,000, registration is entirely your choice. Many small businesses register voluntarily anyway, particularly when they have significant upfront expenses — equipment, materials, professional fees — since registration lets you claim back the GST you paid on those business costs, even before you’re earning much revenue.

Common voluntary-registration scenarios:

• A new business with high setup costs (equipment purchases, initial stock)
• Property developers, early in a project, before sales revenue begins
• Exporters, since export sales are typically zero-rated (0% GST charged) while input GST on local costs remains fully claimable

Who Doesn’t Need to Register At All

Situation	GST registration required?
Employee on PAYE (wages/salary only)	No — GST doesn’t apply to employment income
Turnover under $60,000, no significant deductible expenses	No, but optional
Supplies are entirely exempt (e.g., residential landlord, most financial services)	No — exempt supplies don’t count toward the threshold and can’t be GST-registered against
Hobby income, not a genuine business activity	Generally no

What Happens After You Register?

Once registered, you must:

• Add 15% GST to your taxable sales
• File regular GST returns — monthly, two-monthly, or six-monthly (see our GST Due Dates 2026/27 calendar for exact deadlines)
• Keep GST-compliant invoices for 7 years
• Remit collected GST, minus GST paid on business expenses, to IRD each period

Frequently Asked Questions