NZ GST Registration Threshold: The $60,000 Rule

In New Zealand, you must register for GST if your taxable turnover exceeds $60,000 in any rolling 12-month period. This page explains exactly how the $60,000 threshold works, including the often-misunderstood rolling 12-month test (not financial year), what does and does not count toward the threshold, when voluntary registration is worthwhile, how to register through myIR, and what happens if you register late. All rules are current for the 2026/27 tax year and verified against the Goods and Services Tax Act 1985.

Already registered? Use our NZ GST Calculator for day-to-day GST calculations.

The $60,000 Threshold Explained

Section 51 of the Goods and Services Tax Act 1985 requires you to register for GST if:

• Your taxable turnover for the past 12 months has exceeded $60,000 (retrospective test), or
• You have reasonable grounds to believe your taxable turnover for the next 12 months will exceed $60,000 (prospective test).

Either test triggers mandatory registration. You do not need both.

Key point: The $60,000 is a rolling 12-month figure, not a financial year figure. If you look back over the past 12 months at any point (not just 31 March), and you exceeded $60,000 of taxable turnover, you must register.

Worked example: Monthly check

Amir starts a consulting business on 1 July 2026. His monthly revenue grows as follows:

• July 2026: $3,000
• August 2026: $4,500
• September 2026: $6,000
• October 2026: $5,500
• November 2026: $7,000
• December 2026: $4,000
• January 2027: $8,000
• February 2027: $9,000
• March 2027: $10,500
• April 2027: $8,500
• May 2027: $6,500

Cumulative 12-month turnover from July 2026 to May 2027 = $72,500. But Amir actually crossed $60,000 somewhere during February 2027 (cumulative to Feb: $3,000 + $4,500 + $6,000 + $5,500 + $7,000 + $4,000 + $8,000 + $9,000 = $47,000, then reaching $57,500 in March and $66,000 by April).

Amir must register by the end of the month in which he exceeded $60,000. Because his turnover is trending up, he should probably have registered earlier on the prospective test.

What Counts Toward the $60,000?

Included (taxable supplies):

• Standard-rated sales (the normal 15% GST sales)
• Zero-rated supplies (exports of goods and services)
• Deemed supplies (goods or services taken for private use from your business)

Excluded:

• Exempt supplies (residential rent, most financial services, donated goods sold by non-profits)
• One-off sales of capital assets (for example, selling a vehicle that was used in your business)
• Private transactions not part of a taxable activity (selling personal items on Trade Me)
• Salary and wages from employment
• Dividends and interest (financial services)

Voluntary GST Registration Below $60,000

You can register for GST voluntarily even if your turnover is below $60,000. This is often worthwhile when:

• You have significant business purchases that include GST (materials, equipment, stock) and you want to claim the GST back.
• Most of your customers are GST-registered businesses who can claim the GST you charge. In this case the GST is cashflow-neutral for them and you get the benefit of input credits.
• You are an exporter. Your export sales are zero-rated, meaning you charge 0% GST but can still claim GST back on related expenses.
• You plan to scale and will cross the threshold anyway. Registering early avoids the transition.

When voluntary registration may not suit you

• Most of your customers are private consumers who cannot claim GST back (your 15% is a real cost increase to them).
• You have very few business expenses that include GST.
• You want to minimise compliance: GST-registered businesses must file regular returns and keep GST-specific records.

How to Register for GST

1. Log in to myIR with your IRD number and password.
2. Select "Register for GST" from the I want to... menu.
3. Provide your business details: name, structure (sole trader, company, partnership), and contact information.
4. Choose your filing frequency: monthly, two-monthly (most common), or six-monthly (if turnover under $500,000).
5. Choose your accounting basis: payments (cash), invoice (accruals), or hybrid.
6. Submit. You will receive a GST number within a few working days.

You can register with an effective date up to seven days in the past. If you need to backdate further, Inland Revenue may approve it but will expect you to account for GST on supplies since that date.

What Happens After Registration

• Start charging 15% GST on all taxable supplies from your registration date.
• Issue compliant tax invoices (or "taxable supply information") to your customers.
• File GST returns and pay net GST on the dates set by your filing frequency (see our GST Due Dates 2026/27 page).
• Keep records of all sales and purchases for at least seven years.
• Claim input GST on business purchases on each return.

Backdating input credits on pre-registration purchases

You can claim input GST on goods and services you purchased before registration, provided:

• The goods or services are used in your taxable activity after registration.
• You have a valid tax invoice or supporting documentation.
• For goods, they are still on hand at the registration date (stock, equipment).

What If You Register Late?

If you exceed $60,000 and fail to register, Inland Revenue can:

• Backdate your registration to the date you should have registered.
• Assess GST on all taxable supplies from that date (you owe the GST even though you did not charge customers).
• Apply shortfall penalties (20% to 150% of the GST, depending on behaviour).
• Charge use of money interest on the unpaid GST.

The best-case response is to voluntarily disclose to IRD before they find it. Voluntary disclosure typically reduces shortfall penalties significantly.

Can You Deregister?

Yes, but only if:

• You have ceased the taxable activity, or
• Your turnover has dropped and you reasonably expect it will stay below $60,000 for the next 12 months, and you want to deregister.

On deregistration, you must account for GST on any assets you keep (as a "deemed supply" at market value). This can be a significant cost for asset-heavy businesses.

Frequently Asked Questions

Is the $60,000 threshold GST-inclusive or GST-exclusive?

GST-exclusive. The threshold is $60,000 of taxable turnover, excluding any GST. Once you exceed this you must start charging GST in addition.

Does the threshold change each tax year?

The $60,000 figure has been in place since 1 October 2009 (raised from $40,000). It is not automatically indexed to inflation. Any change would require an amendment to the GST Act.

If I run two businesses as a sole trader, do I add their turnover together?

Yes. The threshold applies to you as the registered person, not to each business. A sole trader with two trading names combines the turnover from both.

What about a company and a sole trader business I run separately?

Those are different legal entities with different IRD numbers. Each is tested separately for the GST threshold.

If I am a director drawing PAYE from my company, does that count?

No. Employment income (including directors' PAYE) is not a taxable supply. Only the company's business revenue counts toward its own $60,000 threshold.

Can I charge GST before my registration is approved?

Not technically. You should not charge GST until you have an approved GST number. In practice, there is a short window between applying and being approved; invoice customers without GST during this window, or agree with customers to send a tax invoice retrospectively once your number is issued.

Related Calculators and Guides

• NZ GST Calculator: add or remove 15% GST.
• Reverse GST Calculator: extract GST from a GST-inclusive total.
• GST Due Dates 2026/27: when to file and pay.
• GST on Imports: Customs GST formula.
• GST for Tradies: registration and invoicing for trades.
• Business GST Calculator: net GST payable across multiple lines.
• Business Income Tax Calculator: income tax for sole traders and companies.
• PAYE Calculator: take-home pay calculator.