If you’re running a business in New Zealand, understanding GST thresholds is essential for staying compliant and choosing the right reporting setup. Whether you’re just starting out or scaling up, your annual taxable supplies will determine when you need to register for GST and how often you file.
GST Thresholds & Filing Overview
Annual Taxable Supplies | GST / Filing Details |
|---|---|
Less than $2m | Payments basis option available |
More than $24m | 1 monthly filing |
Less than $500,000 | 6 monthly option available |
$60,000 | GST registration threshold |
What the GST Registration Threshold Means
Once your annual taxable supplies exceed $60,000, GST registration becomes compulsory.
At this point, you must:
Register for GST with Inland Revenue
Charge GST on applicable goods and services
Lodge regular GST returns
This is one of the most important compliance points for growing businesses, and it often arrives sooner than expected for many sole traders and small businesses.
How Business Size Impacts GST Filing
Under $2 million turnover: Payments basis option available, meaning GST is accounted for when payments are received and made.
Under $500,000 turnover: Eligible businesses may be able to file GST returns every six months.
Over $24 million turnover: Businesses are generally required to file GST returns monthly.
Why It Matters
Choosing the right GST structure isn’t just about compliance — it can also impact cash flow timing, administrative workload, and overall business efficiency.
Getting it right early can save time, stress, and potential penalties down the track.
Need Help Navigating GST?
GST rules can vary depending on your business structure and turnover, and it’s not always obvious which option applies to you.
At Evans & Co Accountants & Advisors, we help businesses across New Zealand understand their obligations and set up systems that make tax time simple and stress-free.
If you’re unsure where you sit in the GST framework, it’s worth having a conversation with a professional to make sure you’re on the right track. Get in touch with our team today.
