GST Registration: Who Qualifies and What You Get
Learn if your business needs GST registration in New Zealand and how to claim back expenses on your business costs.
GST Registration is a requirement for businesses in New Zealand that reach a certain level of annual sales.
Who it's for
You must register if your business has an annual turnover that exceeds $60,000. This means if the total amount of money your business brings in through sales reaches this specific amount within a year, you are required to join the system.
What you get
Registering allows you to claim back the GST you pay on your business-related expenses. This means you can recover the tax portion of the costs you incur while running your business, which helps manage your total business spending.
What it costs you
It is free to register for this scheme. However, being registered brings an ongoing responsibility: you will be required to file a GST return. This is a report of your business's sales and expenses, which you must submit to the Inland Revenue Department on either a monthly or quarterly basis.
The catch to know
The most common mistake people make is forgetting that once you are registered, you must charge GST on all your sales. This rule applies even if your customers are located overseas. You must account for the tax on every sale you make once you are officially in the system.
How to apply
- Monitor your business income to see if your annual turnover has crossed the $60,000 threshold.
- Prepare your business information and financial records for the application.
- Access the official portal to complete the registration process.
- Once registered, set up a system to manage your regular monthly or quarterly filings.