GST registration threshold changes: What NZ businesses need to know in 2026

Published Friday 11 September 2026

Table of contents

• What is the GST registration threshold in NZ?
• Do you need to register for GST?
• How to register for GST in NZ
• GST changes effective from April 2026
• Will the GST threshold increase to $75,000?
• Voluntary GST registration: pros and cons
• How to deregister from GST
• How to track your GST turnover
• Simplify your GST compliance
• FAQs on GST registration in New Zealand

Key takeaways

• The current GST registration threshold in New Zealand is $60,000 in taxable turnover over any rolling 12-month period, and it has not changed since 2009.
• New rules for unincorporated joint ventures took effect on 1 April 2026, but the $60,000 threshold itself remains unchanged.
• You can register for GST voluntarily even if your turnover is below $60,000, which lets you claim GST on business expenses but adds compliance obligations.
• If your turnover drops below $60,000, you can apply to deregister through myIR or by calling Inland Revenue.

What is the GST registration threshold in NZ?

The Goods and Services Tax (GST) registration threshold in New Zealand is $60,000 in taxable turnover over any 12-month period. This figure is calculated on a GST-exclusive basis, meaning you exclude any GST already charged when working out whether you have reached the threshold. The current GST rate is 15%.

This threshold is set out in section 51 of the Goods and Services Tax Act 1985. It was last changed in 2009, when it increased from $40,000 to $60,000. Since then, it has remained at the same level despite rising costs and inflation.

The threshold applies equally to sole traders, contractors, partnerships, companies, and trusts carrying on a taxable activity in New Zealand.

How the 12-month rolling period works

The threshold is not based on a fixed financial year. Instead, it uses a rolling 12-month window that moves forward continuously. At any point, you look back at the past 12 months of sales from your taxable activity.

There are two tests. The first is retrospective: your total taxable turnover in the past 12 months has already exceeded $60,000. The second is prospective: you reasonably expect your taxable turnover to exceed $60,000 in the next 12 months.

If either test is met, you are required to register for GST with Inland Revenue.

Do you need to register for GST?

You must register for GST if your taxable turnover exceeds $60,000 in any rolling 12-month period. This applies whether you are a sole trader, contractor, company director, or running a partnership or trust.

You don’t need to register simply because you start a business. It depends on the level of sales from your taxable activity, assessed using the rolling 12-month tests described above.

What counts as taxable turnover

Taxable turnover includes all income from goods and services that are subject to GST. Most business sales in New Zealand fall into this category.

However, some supplies are exempt from GST. These include financial services, residential rental income, and certain donated goods sold by non-profit organisations. Exempt supplies don’t count towards the $60,000 threshold.

If you sell a mix of taxable and exempt supplies, only the taxable portion counts. Foreign businesses supplying goods or services in New Zealand face the same $60,000 threshold and registration obligations as domestic businesses.

How to register for GST in NZ

You can register for GST online through the myIR portal. You will need your Inland Revenue Department (IRD) number and details about your business activity to complete the process.

During registration, you choose your accounting basis and filing frequency. The two main accounting options are the invoice basis (you account for GST when you issue or receive an invoice) and the payments basis (you account for GST when money changes hands).

1. Log in to myIR with your IRD number and password.
2. Select the option to register for a new tax type and choose GST.
3. Enter your business details, including your expected turnover and business start date.
4. Select your preferred accounting basis (invoice or payments).
5. Choose your filing frequency based on your turnover level.
6. Submit your registration and note the effective date provided.

Choosing your filing frequency

Your filing frequency depends on your annual taxable turnover. There are three options available:

• Monthly filing: required if your turnover exceeds $24 million
• Two-monthly filing: available if your turnover is below $24 million (this is the most common frequency for small and medium businesses)
• Six-monthly filing: available if your turnover is below $500,000, this reduces the number of returns you need to file each year

You can request a change to your filing frequency through myIR if your circumstances change.

GST changes effective from April 2026

New rules for unincorporated joint ventures took effect on 1 April 2026, introduced through the Taxation Act 2025-26. These changes affect how GST applies when two or more parties carry on a taxable activity together without forming a separate legal entity.

Under the new rules, unincorporated joint ventures can register collectively for GST. Previously, each participant in a joint venture had to manage their own GST obligations individually. The change simplifies compliance by allowing the joint venture to file a single GST return.

The $60,000 registration threshold still applies, but it is now assessed at the joint venture level rather than for each individual participant. If the joint venture's combined taxable turnover exceeds $60,000, the venture must register.

Joint ventures that existed before April 2026 may be able to cancel their individual GST registrations if the joint venture's combined turnover is below the threshold. If you are part of an unincorporated joint venture, check whether the new collective registration option suits your arrangement.

Will the GST threshold increase to $75,000?

The National Party has proposed increasing the GST registration threshold from $60,000 to $75,000. As of September 2026, this proposal has not been enacted into law. The threshold remains at $60,000.

The case for an increase centres on inflation. The threshold has been set at $60,000 since 2009, and the cost of doing business has risen substantially since then. A public petition has also called for the threshold to be raised, arguing that more small businesses and sole traders are being pulled into GST registration as their nominal turnover grows.

Supporters of the increase say a higher threshold would reduce compliance costs for very small businesses. Critics argue it could create an incentive for businesses to suppress growth to stay below the registration limit.

Until legislation passes, all current GST registration obligations remain based on the $60,000 figure. Plan your business finances around the existing threshold and monitor any updates from Parliament or Inland Revenue.

Voluntary GST registration: Pros and cons

You can register for GST voluntarily even if your taxable turnover is below $60,000. There is no minimum turnover requirement to register.

Voluntary registration can be worthwhile in some situations, but it also brings ongoing obligations. Consider both sides before making a decision.

Benefits of voluntary registration include:

• Claim GST back on your business purchases and expenses, which reduces your costs if you deal mainly with GST-registered suppliers.
• Add credibility when dealing with other businesses, as many commercial buyers prefer to work with registered suppliers.
• Prepare for growth by registering early, which avoids having to charge GST retrospectively once you cross the $60,000 threshold.

Drawbacks of voluntary registration include:

• Charge your customers 15% GST on your goods and services, which may make your prices less competitive if your customers are not GST-registered themselves.
• Take on regular filing and record-keeping obligations, including submitting GST returns on time.
• Commit to at least 12 months of registration before you can apply to deregister.

How to deregister from GST

You can cancel your GST registration if your taxable turnover has dropped below $60,000 and you don’t expect it to exceed that figure in the next 12 months. You can apply to cancel your GST registration through myIR or by calling Inland Revenue on 0800 377 776.

When you deregister, you need to file a final GST return. This return must account for GST on any business assets you are keeping, as Inland Revenue treats retained assets as a deemed supply at their market value.

You also need to choose an effective deregistration date. This can be a future date if you want time to wind down your GST obligations. After your deregistration takes effect, you stop charging GST on your sales and can no longer claim GST on your purchases.

If your turnover fluctuates around the $60,000 mark, consider whether deregistering is the right move. Re-registering later means going through the process again and potentially adjusting your pricing.

How to track your GST turnover

Monitoring your rolling 12-month turnover is essential for staying on top of your GST obligations. If you cross the $60,000 threshold without realising it, you risk penalties for late registration.

Use your accounting software to run regular reports on your taxable income. Set up a monthly review to check your cumulative turnover for the past 12 months. This takes only a few minutes and gives you a clear picture of where you stand.

When reviewing your figures, make sure you separate taxable supplies from exempt supplies. Only taxable supplies count towards the $60,000 threshold. If you earn income from a mix of taxable and exempt activities, your accounting records need to distinguish between the two.

Setting a turnover alert at $50,000 gives you a buffer. Once you reach that level, you can start preparing for registration rather than scrambling to comply at the last moment. For more guidance on GST and general business tax obligations, visit the government's guide to business tax.

Simplify your GST compliance with Xero

Managing GST doesn’t have to be complicated. Xero's cloud accounting software helps New Zealand businesses stay on top of GST by automating the tasks that take up your time.

With Xero, your bank transactions are categorised and reconciled automatically, so your GST figures are always up to date. You can generate GST returns directly from your accounts, file them with Inland Revenue, and track your taxable turnover in real time. That means fewer surprises when it comes to the $60,000 threshold.

Xero is trusted by over 4.6 million subscribers and is built to support businesses at every stage, from sole traders filing their first GST return to growing companies managing complex obligations.

Ready to simplify GST for your business? Get one month free.

FAQs on GST registration in New Zealand

Here are answers to common questions about GST registration for New Zealand businesses.

Is the GST threshold based on turnover or profit?

The threshold is based on your taxable turnover (total sales from taxable activities), not your profit. Business expenses and costs are not deducted when working out whether you have reached $60,000.

Can I register for GST voluntarily?

Yes. You can register for GST at any time, even if your turnover is below $60,000. Voluntary registration lets you claim GST on business expenses, but you must charge 15% GST on your sales and file regular returns.

How do I know if I need to register for GST?

Check your taxable turnover against the $60,000 threshold using the retrospective and prospective tests outlined in the registration threshold section of this guide.

What are the penalties for not registering for GST?

Inland Revenue can charge late registration penalties and require you to account for GST on sales made during the period you should have been registered. This can result in a significant backdated tax bill plus potential shortfall penalties.

What is the GST rate in New Zealand?

The GST rate in New Zealand is 15%. This rate applies to most goods and services supplied in the country.