Contractor GST Threshold Calculator NZ

This calculator helps New Zealand contractors and sole traders work out whether they must register for GST, based on how their turnover compares with the registration threshold. Registration becomes compulsory once your turnover from a taxable activity passes the threshold in any 12 month period, or you expect it to, and knowing where you stand matters because registering changes what you charge clients and what you can claim back. You enter your annual turnover (GST exclusive), the GST registration threshold, and the GST rate that applies. The calculator returns a clear verdict on whether you must register or registration is not yet required, your headroom to the threshold if you are under it, the GST you would add to your prices if you registered, and the resulting GST inclusive price. Use it to check your position as income grows through the year, to see what registering voluntarily below the threshold would mean for your pricing, and to plan ahead rather than discovering registration was compulsory after the fact. Because the threshold and GST rate can change, and the rules around expected turnover matter too, confirm the current figures and your situation with Inland Revenue before acting. This tool gives an indicative check only and is not tax advice, so treat the results as a starting point for a conversation with your accountant or Inland Revenue rather than a final answer.

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Your annual turnover (GST exclusive)

GST threshold

GST rate

Registration not yet required

you may still register voluntarily

Headroom to the threshold$8,000

GST you would add$7,800

Price including GST$59,800

The registration threshold has been $60,000 in any 12 month period; check the current figure and rules with Inland Revenue. You must also register if you expect to exceed it. Estimate only, not tax advice.

How it works

The calculator compares your annual turnover with the GST registration threshold. If you are over it, registration is compulsory; if under, it shows your headroom before you must register, and you may still choose to register voluntarily. It also shows the GST you would add to your prices at the GST rate and the GST inclusive price, so you can see the effect of registering on what you charge.

Worked example

On $52,000 of turnover against a $60,000 threshold, you are under by $8,000, so registration is not yet compulsory. If you registered, you would add 15% GST, so a $52,000 of work would be billed as $59,800 including GST, with that GST passed to Inland Revenue.

Related calculators

GST Calculator: add or remove GST.
Provisional Tax Calculator: contractor tax.

Data sources: the rates and thresholds on this page are maintained against Inland Revenue. Figures are checked twice monthly.

Frequently asked questions

When must I register for GST in New Zealand?

You must register for GST if your turnover from a taxable activity is over the registration threshold in any 12 month period, or you expect it to be. The threshold has been $60,000 for some time; check the current figure with Inland Revenue.

What happens when I register for GST?

You add GST to your prices and pass it to Inland Revenue, but you can also claim back the GST on your business expenses. For clients who are themselves GST registered, charging GST makes no real difference to them.

Should I register voluntarily under the threshold?

You can register voluntarily below the threshold, which lets you claim GST on expenses but means more paperwork and adding GST to prices. Whether it is worth it depends on your costs and who your clients are.