What Is GST And Do You Need To Register?
GST stands for Goods and Services Tax — it’s a 15% tax added to most things sold in Aotearoa New Zealand, including your products and services. When you’re in business, you collect this tax on behalf of the government and pass it on to Inland Revenue.
Not everything has GST added — for example, residential rental income and some financial services are exempt, but most business transactions will include it.
When do you have to register?
You need to register for GST if your total sales (before expenses) are expected to go over $60,000 in any 12-month period. This includes everything you sell — not just one-off jobs, but ongoing services, product sales, or project work.
Can you register before hitting that number?
Yes — and in some cases, it might be a smart move.
Here’s why some businesses register voluntarily:
You can claim GST on business expenses
If you’re GST-registered, you can claim back the GST on your business costs (like supplies, subscriptions, or fuel), which helps reduce your tax bill.It can boost your credibility
Some clients — especially bigger ones — prefer working with GST-registered businesses. It can signal you’re serious, your set up properly and show longevity.It helps you prepare for growth
If you’re growing fast and expect to cross the $60k line soon, registering early means you’ll avoid any last-minute stress. You’ll already be set up and ready to go.
Don’t forget the admin side…
Registering for GST means you’ll need to file GST returns regularly — either monthly, two-monthly, or every six months, depending on your setup. This adds an extra admin task to your to-do list, so it’s worth checking whether you’ve got the time (or tools) to manage it. If you’re just starting out or working with a tight budget, think about whether this extra step fits into your current workflow.
Understanding these GST basics will help you make informed decisions about registering and staying compliant with New Zealand tax laws. For more details, you can check Inland Revenue's guide here.
Assessing these factors can help you determine whether it's time to hire a bookkeeper to ensure your financial health and support your business growth.
By dedicating some time to familiarise yourself with these tools, you can maintain accurate financial records, ensuring a clear picture of your financial health without the need for professional bookkeeping services.
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