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References

Full source list for Do I need to register for GST — and how does it work if I do?

Tax & money basics·Decision

Ten numbered references for /wayfinder/refs/gst-registration:

1. GST registration threshold: $60,000 of taxable supplies in any 12-month period (rolling), per section 51 of the Goods and Services Tax Act 1985. The threshold applies on a rolling 12-month basis — it does not reset each financial year. The $60,000 operates under two independent tests, either of which triggers registration: a retrospective test (taxable turnover in the previous 12 months has exceeded $60,000) and a prospective test (reasonable grounds to believe turnover in the next 12 months will exceed $60,000).

  • GST Act 1985 section 51 — legislation.govt.nz

2. Registration must be completed within 21 days of exceeding the threshold (or of forming a reasonable belief that it will be exceeded) — section 51(2) exact text: "shall apply to the Commissioner in the prescribed form for registration under this Act, within 21 days of becoming so liable." The 21-day period is in calendar days, not working days.

  • GST Act 1985 section 51(2) — legislation.govt.nz (verified 5 July 2026)

3. Late registration results in IRD backdating the registration date and treating supplies since that date as taxable, with GST owing on them.

  • GST Act 1985 section 51(2), s51(4)(b) — legislation.govt.nz
  • IRD registering-for-gst — ird.govt.nz/gst/registering-for-gst (verified 5 July 2026)

4. Filing frequencies under sections 15 and 15B of the GST Act 1985:

  • Monthly: mandatory for businesses with annual turnover over $24,000,000; optional for any GST-registered business below that threshold.
  • Two-monthly: the default frequency, available to businesses with annual turnover under $24,000,000.
  • Six-monthly: optional for businesses with annual turnover under $500,000. GST returns and payments are generally due on the 28th of the month following the end of the taxable period (per section 16), with two exceptions: the period ending 30 November is due 15 January, and the period ending 31 March is due 7 May.
  • GST Act 1985 sections 15, 15B, 16 — legislation.govt.nz

5. Accounting basis options under the GST Act:

  • Invoice basis (section 19, the default): GST accounted for at the date of supply or invoice, whichever is earlier. Aligns with accrual accounting.
  • Payments basis (section 19A): GST accounted for when payment is received or made. Available to businesses with annual taxable supplies under $2,000,000.
  • Hybrid basis (section 19D): GST on sales accounted on invoice basis; GST on purchases on payments basis. Less commonly used. A business on payments basis must switch to invoice basis if it exceeds the $2,000,000 threshold or if a single supply exceeds $225,000 with deferred settlement over 365 days (per section 19D).
  • GST Act 1985 sections 19, 19A, 19D — legislation.govt.nz

6. Voluntary deregistration: there is no minimum registration period before a voluntarily-registered person may apply to cancel. Section 52 of the GST Act permits cancellation where the Commissioner is satisfied the person's taxable supplies in the next 12 months will not exceed the $60,000 threshold. IRD guidance (ird.govt.nz/gst/gst-cancellation/when-to-cancel-your-gst-registration) confirms no minimum period is required; cancellation is available once turnover is expected to remain below $60,000, or after 12 months of nil returns. The structural disincentive is the deemed supply on cessation: when a registered person ceases to be registered, business assets retained are treated as supplied at market value immediately before cessation, and GST must be accounted for on that value in the final return. Cancellation is not available while GST is still included in prices (per IRD guidance). The prior claim of a "two-year minimum" has no basis in NZ law; it is a cross-jurisdiction contamination (the two-year rule applies in Singapore).

  • GST Act 1985 section 52 — legislation.govt.nz
  • IRD GST cancellation guidance — ird.govt.nz/gst/gst-cancellation (verified 5 July 2026)

7. GST rate: 15% since 1 October 2010, set under section 8 of the GST Act 1985. Some supplies are zero-rated (most exports, some financial services to non-residents) under section 11; some are exempt (residential rent, most financial services to residents, donated goods sold by non-profit bodies) under section 14. Zero-rated supplies still count toward the $60,000 registration threshold (they are taxable supplies charged at 0%); exempt supplies do not count toward the threshold (they fall outside the GST system entirely).

  • GST Act 1985 sections 8, 11, 14 — legislation.govt.nz

8. On-time mandatory registration: where a person applies within the 21-day window after becoming liable under section 51(1), IRD generally sets the registration effective date to when the person first became liable (Standard Practice Statement SPS 18/03). Voluntary registration below the threshold is generally effective from the date of application or another prospective date the Commissioner approves (SPS 18/03).

  • GST Act 1985 s51(1), s51(4) — legislation.govt.nz
  • IRD SPS 18/03 — Effective date of GST registrations (verified 5 July 2026)

9. It's not the full 15% — the GST portion of a price that already includes it is 3/23: $130 from every $1,000. The tax fraction is defined in section 2(1) of the GST Act 1985 as r/(100+r) where r is the rate (15), giving 15/115 = 3/23; IRD's method for a GST-inclusive amount is to multiply by 3 and divide by 23.

  • GST Act 1985 section 2(1) "tax fraction"; section 8 (rate 15%) — legislation.govt.nz (owner confirmation owed)
  • IRD Calculating your GST — ird.govt.nz/gst/filing-and-paying-gst-and-refunds/calculating-gst (verified 5 July 2026)

10. GST paid on goods and services bought before you registered can still be claimed as input tax once you are registered, to the extent they are used to make taxable supplies and you hold the records to support the claim. The adjustment on becoming registered is provided for in section 21B of the GST Act 1985.

  • GST Act 1985 section 21B — legislation.govt.nz (owner confirmation owed)
  • IRD claiming GST / subsequent registration — ird.govt.nz/gst/claiming-gst (verified 5 July 2026)