{"id":542,"date":"2021-11-30T23:41:46","date_gmt":"2021-11-30T10:41:46","guid":{"rendered":"https:\/\/afirmo.zestydev2.co.nz\/?p=542"},"modified":"2023-01-15T20:15:34","modified_gmt":"2023-01-15T07:15:34","slug":"how-to-register-for-gst-in-new-zealand","status":"publish","type":"post","link":"https:\/\/www.afirmo.com\/nz\/resources\/how-to-register-for-gst-in-new-zealand\/","title":{"rendered":"How to register for GST in New Zealand"},"content":{"rendered":"

This article primarily looks at how to register for GST in New Zealand, but before we get into the nuts and bolts of the task, let\u2019s look at who needs to register for GST.<\/p>\n

Not all businesses need to be registered for GST. It\u2019s only mandatory if you\u2019re earning above a certain amount.\u00a0 We\u2019ll also run some information past you about two-monthly or six-monthly filing, and the \u2018basis\u2019 decision you need to make.<\/p>\n

As someone poised on the brink of self-employment, below are the GST-related questions that could be on your mind. These questions are also relevant to someone who\u2019s been self-employed for a while but is only just reaching the income threshold for mandatory GST.<\/p>\n

Do I need to register for GST?<\/h2>\n

You need to register for GST if you have a company with an income of more than $60,000 a year, or if you\u2019re a self-employed individual who earns more than $60,000 a year. The self-employed individual category applies to freelancers, contractors and sole traders.<\/p>\n

If your self-employed status applies to a side gig you\u2019re running in addition to a salaried or waged job, it\u2019s important to know that the $60,000 threshold applies only to the money you earn that isn\u2019t liable to PAYE. For example, if you make $20,000 a year building rabbit hutches in your garage, on top of wages that have PAYE deducted from them, you don\u2019t have to register for GST. But it\u2019s an option.<\/p>\n

In this instance, registering for GST could be handy because you could claim GST on your rabbit hutch materials. However, you\u2019ll have to add 15% GST to your prices and you need to do your GST returns on time.<\/p>\n

How often do I need to file a GST return?<\/h2>\n

If you\u2019ve jumped the gun and already started the registration process, you\u2019ll quickly realise there\u2019s a decision to be made. How often do you want to file a GST return? The options are every month, every two months or every six months.<\/p>\n

The \u2018every month\u2019 option only applies to businesses that make more than $24m a year, so that might not apply to you. And if you earn over $500,000 per year, you can\u2019t choose the six-monthly option. Lots of self-employed people choose the two-monthly option, so there\u2019s less drain on cash flow when GST payments come around.<\/p>\n

Should I choose payments basis, invoice basis or hybrid basis for GST?<\/h2>\n

Another decision you need to get your head round is the \u2018basis\u2019 of your GST relationship with the IRD. There are three choices:<\/p>\n