When can I de-register from GST in NZ?

You can apply to cancel your GST registration if your turnover has dropped (and is expected to remain) below the $60,000 threshold, you have stopped your taxable activity, or you sold or closed your business. You MUST cancel your registration within 21 days if you stop your taxable activity and don't intend to start a new one within 12 months. If your turnover stays above $60,000 you cannot de-register.

Do I owe GST when I de-register?

Yes. The GST Act treats any business assets you keep at de-registration as if you sold them to yourself at open market value. You must pay GST output tax on this 'deemed supply' in your final GST return. This includes vehicles, equipment, inventory, and even land or buildings used in the business. The rule prevents you from claiming GST on a business asset purchase and then keeping it for private use after de-registering.

How is the deemed supply value calculated?

The deemed supply is calculated at open market value (the price the asset would fetch if sold to an independent third party at the de-registration date), and the output tax is 3/23 of that market value. You can value at depreciated book value if it reasonably approximates market value, but for distinctive assets (vehicles, real estate) get a market valuation. Assets with no business use at de-registration (you've already disposed of them or written them off) are not part of the deemed supply.

What happens if I miss the 21-day de-registration window?

You remain GST-registered and must keep filing returns. You may have to pay GST on any payments you collect for past taxable activities even if you're no longer trading. IRD can also back-date your de-registration to the actual date you ceased taxable activity, which may trigger interest and penalties on the deemed supply tax that should have been paid then. Best practice: notify IRD via myIR within 21 days of stopping your taxable activity.

GST De-registration Calculator NZ 2026

De-registering from GST isn't free: any business assets you keep at de-registration are deemed sold to yourself at market value, and you must pay GST output tax on the lot. This calculator works out the deemed supply across vehicles, equipment, inventory, and other categories, then totals the GST you'll owe in your final return. Run this BEFORE you de-register so you know the cash impact.

Updated April 2026 Implements section 5(3) of the GST Act 1985 (deemed supply on cancellation of registration).

Eligibility check

Why are you de-registering?

Current annual turnover

Assets to be retained at de-registration (market values, GST inclusive)

Enter the open market value of each asset category that you will keep after de-registration. Use depreciated book value if it reasonably reflects market value.

Vehicles (cars, vans, utes)

Equipment, tools, machinery

Inventory / stock on hand

Office furniture, fittings, technology

Land and buildings (commercial/business use)

Land may be subject to compulsory zero-rating in some circumstances. If transferring to another GST-registered party, see the Zero-Rated Supply Checker. Other business assets retained

Outstanding amounts at de-registration

What GST accounting basis are you on?

Payments basis users have GST owing on outstanding debtors at de-registration. Invoice basis users have already paid the GST on debtors when the invoices were issued. Outstanding debtors (unpaid customer invoices)

Only included in the final return calculation if you are on the payments or hybrid basis. Invoice basis users have already accounted for this GST.

Asset / item	Market value	GST (3/23)
Total GST output tax in final return	$0

Why de-registration triggers GST

When you originally bought business assets, you claimed back the GST as input tax. The de-registration rules ensure that you can't keep those assets for personal use without effectively paying back the GST. The mechanism is a "deemed supply": the GST Act treats you as having sold the assets to yourself at market value on the date of de-registration. You pay output tax on this deemed sale in your final return.

When you can de-register

Turnover below $60,000: If your taxable supplies dropped below the registration threshold and will stay there, you can voluntarily de-register.
Ceased taxable activity: You MUST de-register within 21 days if you've stopped taxable activity and won't restart within 12 months.
Sold business: The sale of the business as a going concern is typically zero-rated, but you still need to de-register after the sale.

Calculating the final return

Three components go in your final return:

Normal sales and purchases for the final taxable period up to the de-registration date.
Deemed supply on retained assets at open market value × 3/23.
Outstanding debtors if you were on the payments basis (pay GST as though invoices had been paid).

Sources

Related calculators

GST Calculator — standard 15% GST
GST Registration Threshold — the $60k question
GST Zero-Rated Supply Checker — for going-concern sales
GST Change of Use Calculator — if use changed before de-registration

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