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e-GST and Xero Tax making it easier for small business

Posted 4 years ago in Advisors by
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In December 2015, we started a GST pilot in which 1,400 businesses sent their GST returns from Xero direct to Inland Revenue. The very successful first phase of the pilot has just wrapped up. The small businesses who participated were enthusiastic:

The new GST filing service gives business owners peace of mind.  Xero not only calculates GST, it also looks for and automatically includes transactions that were missed off the previous GST return, giving businesses assurance that they capture everything. Business owners can have confidence that accurate data is successfully transferred directly to Inland Revenue with almost no human effort.

The great news is that the original pilot was available for customers filing GST only –  but when we roll it out to everyone, the service will also be available to those customers who file GST and provisional tax together.

Big thanks to the customers helping us test this new service. We’re well into the second phase, and can’t wait to offer this service to all of our New Zealand businesses – we’ll let you know as soon as it’s available.

inland revenue xero tax gst

It’s true that good things take time, and we’ve been working hard with the Inland Revenue team for years to jointly create and start delivering services like this. Inland Revenue have a great team who are genuinely excited about working with software providers to make it easy for small businesses to meet their obligations.

Xero Tax in Practice Manager

We’re also making it easy for partners to deal with government – Xero Tax in Practice Manager enables accountants and bookkeepers to file directly to Inland Revenue, with some excellent results here too:

  • over 8,000 tax returns were filed in just one day on 31 March 2015
  • over 100,000 GST returns were filed last year

We’ve already started work on digital signatures for Xero Tax, getting ready for pending legislation changes. Working with government really moves the dial on making it easy for New Zealanders to do better business. Direct GST filing with Inland Revenue is just the start. We’re proud to be working with government and can’t wait to bring you even more great Xero services over the next few years.


Jennifer Dalziel
April 4, 2016 at 6.37 pm

I tried to file a GST return via Xero at IRD. IRD refused to accept my log in and Password despite repeated attempts and combinations.. In the end I gave up and went back to the old method of filing. I would love to be able to do it .. can anyone help.??

Lisa Wilkin
April 4, 2016 at 7.07 pm

Hi Jennifer, thanks for your message – sorry to hear you had trouble logging into myIR. Did you try re-setting your password? I’d give that a go first, and if that doesn’t work, get in touch with IR, they’ll be able to help you get your access sorted. If you try all this and get stuck, drop me an email

James N
April 11, 2016 at 10.07 am

Is this likely to be ready in time for the 2015 tax year?

Lisa Wilkin
April 12, 2016 at 3.02 pm

Hi James, thanks for your question. Just to confirm this pilot is for GST filing only at this stage, so when it goes live you’ll be able to file GST only (GST 101) and/or GST and provisional tax (GST 103). The service won’t work for people who are just wanting to file their provisional/income tax without GST. However, that is on the radar and we’ll work with IR to do this some time in the future. Hope that answers your question, feel free to get in touch if you need. Cheers, Lisa

April 21, 2016 at 11.46 am

Being able to do income tax would be great. When do you think that would be ready to go? Thanks.

Lisa Wilkin
April 21, 2016 at 1.03 pm

Hi Rebekah, thanks for your question – eGST filing with prov tax is being built as we speak. It’s coming soon, within the next few months. Cheers, Lisa

May 14, 2016 at 5.58 pm

Hi. Just so I’m clear, we will be able to file GST returns and provisional tax returns very soon via Xero? (But annual income tax returns still a while away). Do you have to have a certain a set up at the IRD end – ie GST set to 2-monthly or 6-monthly etc or does that not matter. This will be fantastic when available

Andrea Silvers in reply to Kelly
May 19, 2016 at 6.17 pm

Hi Kelly, yes that’s right, you’ll be able to file returns via Xero for either GST only (GST 101) or GST and provisional tax (GST 103) filing. Note that for the GST and provisional tax filing, IR support the standard and estimate options for all filing periods – monthly, 2 monthly, 6 monthly. And yes, it’s not far away now – we’re almost in our final phase of testing and we’ll be going live within a few months. Thanks for your comment.

May 17, 2016 at 8.19 pm

Is it looking likely that we will be able to file our own IR4’s with Xero in the near future too?

Lisa Wilkin
June 14, 2016 at 4.28 pm

Hi Tyler, it’s not something we’re working on just yet. IR have a lot of work planned over the next few years though, so you might want to keep an eye on and we’ll definitely keep everyone posted as we do more integrations with government. Thanks for your question – and sorry for the delay, I had to do a bit of checking on this one. Cheers Lisa

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