Branch registration vs GST group NZ: one entity or many
GST branch registration splits one legal person into separate GST numbers. A GST group joins two or more entities so one representative files one return. They are not the same tool, and neither is an Australian ATO GST group.
Inland Revenue’s special types of GST registration page lets entities with separate branches or divisions register as one entity, or register one or more branches separately. A GST group is a different special type: entities with common ownership or control register together so Inland Revenue can treat them as a single entity for GST. GST Act 1985 section 56 is branches and divisions. Section 55 is GST groups.
Pick branch registration when you have one Ltd, one society, or one sole trader with shops that keep their own books. Pick group GST registration when you have two or more companies (or a mixed group under common control) and you want one group GST return. This is not tax advice. Figures are working papers from Inland Revenue, the GST Act 1985, and the Companies Office.
The one line test
Same legal person, extra GST numbers: gst branch registration under section 56. Separate legal persons, one return: gst group under section 55. Category: Advanced GST Rules.
Branch registration
One registered person applies so a branch or division is treated as a separate registered person. Independent accounts. Identified by activity or location. Own GST number, own invoices, own returns. If the branch defaults, GST Act 1985 section 56(5) sends the liability back to the parent. Filing frequency and accounting basis still follow the parent (section 56(6)).
GST group
Two or more entities register as a group. Inland Revenue treats the group as a single entity and uses combined turnover. One representative files 1 GST return. Members do not charge GST on sales to other members. Each member is liable both as a group and as an individual for GST due. Same filing frequency and accounting basis for everyone.
What is a GST group, and what is gst branch registration?
What is a GST group, in Inland Revenue’s words: a group is formed when 2 or more entities, which carry out taxable activities, register for GST as a group. An entity can be a person, a company, an incorporated or unincorporated society or club, a joint venture or partnership, a trustee or a trust or estate, or a public or local authority. GST Act 1985 section 55(1AB) is meant to treat the members, with exceptions, as if they were a single company. People search group gst and gst consolidated group for that one return. Inland Revenue and IS 24/02 call it a single consolidated GST return filed by the representative in the representative’s own GST number. It is not an income tax consolidated group under the Income Tax Act 2007.
GST branch registration is still one legal person. GST Act 1985 section 56(1) and (2): the registered person may apply for a branch or division to be registered as a separate registered person if each branch or division maintains an independent system of accounting and can be separately identified by the nature of the activities carried on or the location of the branch or division. Inland Revenue’s businesses heading: add the turnover for all the branches or divisions together when you decide if you need to register for GST. Then you may register as a single entity, or register one or more branches or divisions separately.
| Question | GST branch registration | GST group |
|---|---|---|
| How many legal persons? | One, split for GST | Two or more entities |
| How many GST returns? | One per separately registered branch, plus the parent. IR375 Box 19 totalling other branches for some calculations. | One return, filed by the representative. Members do not file their own while in the group. |
| Sales between the parts | A separately registered branch is a separate registered person, so sales to the parent are sales between two registered persons. | GST Act 1985 section 55(1AE)(b): supplies to another member are disregarded when calculating tax payable, unless another provision says otherwise. IS 24/02: reverse charge imported services are not ignored. |
| Who is on the hook? | Section 56(5): if the branch defaults, liability reverts to the parent registered person. | Inland Revenue: each member is liable both as a group and as an individual. IS 24/02 and section 55(1AO): jointly and severally liable. IS 24/02 example: Winter Co must pay $5,000 if Spring Co cannot. |
| $60,000 test | Add all branches together before you register. | Combined turnover of the group. IR375: the $24 million monthly test and the $500,000 six monthly test apply to the group as a whole. |
Ungrouped management fees between Ltd companies still need 15% unless you are in a GST group: GST on intercompany management fees. Worked 15% maths: GST calculator. Taxable supply information can sit on the GST invoice generator using the representative’s GST number or a member’s own number, which Inland Revenue allows. Ordinary registration for a new entity still starts with the $60,000 test: register for GST in NZ.
How gst group registration and the gst group form work
GST group registration is applied for by the representative only. Inland Revenue: log in to myIR, go to the GST account, select More, then Register as a GST group. The gst group form is IR374, Goods and services tax application for group registration (April 2022). Inland Revenue processes the request within 10 working days and the group’s GST account then shows in myIR. That is group gst registration in practice. Members already GST registered must use the same filing frequency and accounting basis as the group before they join. Align those settings first: change GST filing frequency in myIR.
Company-only groups: Inland Revenue and IR374 require the Income Tax Act 2007 section IC 3 group of companies test, with common voting interests of at least 66% (and market value interests of at least 66% where that test applies). The group must also meet one of these: each company is GST registered, or the total value of taxable supplies made by the group to outside entities is at least 75% of the total supplies made by the group. Mixed groups (not all companies) must be GST registered and meet a control test: one member controls all other members, one person outside the group controls all members, or two or more people carrying on a taxable activity in partnership control the members. Non-resident entities registered under section 54B can only be grouped with other non-resident entities registered under the same section.
IR374 Question 9: if all group members (including the representative) are registered for GST on low value imported goods and/or remote services, the group must file quarterly. For other groups, combined taxable supplies over $24 million means monthly filing, under $24 million may be two monthly, under $500,000 may be six monthly. Change members, change the representative, or cancel in myIR. Inland Revenue processes a membership change within 10 working days. A removed member who was GST registered before joining must restart filing and paying. They stay liable for GST due while they were a member. Confirmation of cancellation is within 10 days. IS 24/02: a company can only be a member of one GST group at a time. More process sits on the existing GST group registration guide.
Joint and several GST is the group price
IS 24/02 Tauira 30: Spring Co goes into liquidation without filing the latest group GST return. The GST group owes Inland Revenue $5,000. Winter Co must pay, because section 55(1AO)(a) makes it jointly and severally liable. That is the opposite of a separately registered branch, where section 56(5) pulls unpaid work back to the parent of the same legal person. GST Act 1985 section 55(1AP), summarised in IS 24/02, lets the Commissioner relieve an exiting company in some cases. It is not automatic.
Branch office registration is not gst branch registration
Branch office registration on the Companies Office Overseas Register is a Companies Act 1993 step for an overseas company carrying on business in New Zealand. The Companies Register: you must register within 10 working days of starting your business activities here. Setting up a branch does not create a separate legal entity. That is not GST Act 1985 section 56. You may still need GST if you supply goods or services in New Zealand. GST for those sellers is a different file: overseas businesses selling into NZ.
Not-for-profit societies, associations, or organisations use a slightly different branch path. Inland Revenue: register as a single entity, or send a myIR message asking Inland Revenue to treat each branch or division separately. Each branch needs a different location or different activities, its own GST registration, and its own accounting system. IR365: apply in writing; branches over $60,000 in any 12-month period must register, and those under $60,000 may register voluntarily. IR255 says the same written application path. If you cancel the parent GST registration, IR375: all separate branch and division registrations are automatically cancelled. The parent can cancel a branch registration at any time and must take over those GST responsibilities.
Pull highlight: IS 24/02 says GST grouping is meant to reduce distortions between a single entity with a branch structure and a group of companies. Intra group supplies are meant to look like stock moving between departments. If you want that outcome across separate companies, you need gst group registration, not extra trading names.
ATO GST group, gst consolidated group, and Access Group software GST returns
An ATO GST group is Australian. New Zealand does not use the Australian Taxation Office grouping manual. Use Inland Revenue GST groups and GST Act 1985 section 55. A gst consolidated group search usually wants either that one representative GST return, or income tax grouping under section IC 3. Section IC 3 is the ownership test that company-only GST groups must meet. It does not, by itself, file your GST. You still apply with IR374 or myIR.
The Access Group accounting software GST returns question is about software, not a tax group. The Access Group appears on New Zealand’s government eInvoicing software list (FastTrack360). Accounting software can prepare figures against a GST number. It does not register a GST group. Inland Revenue: each member must give the representative details of its income and expenses so the representative can include them in the group’s GST return. File that return in myIR. Xero, MYOB, or Access Group files are still books. The group GST return is an Inland Revenue return.
A supplier group under GST Act 1985 section 55B is also not a GST group. From 30 March 2022, two or more registered persons who are not members of the same GST group may agree that one issuing member issues taxable supply information for agreed supplies. Do not mix that agreement with IR374. From 1 April 2026, Inland Revenue also lets members of unincorporated joint ventures choose to account for GST individually on their share. That is another special type, not branch versus group.
- ✓ One Ltd, two shops, separate tills: consider gst branch registration if each shop has independent accounts and a different location or activity.
- ✓ HoldCo plus two trading companies, 66% common ownership: consider a GST group so intra group fees drop out of the GST calculation.
- ✓ Overseas company opening in Auckland: Companies Office branch office registration first if you are carrying on business. GST is a separate Inland Revenue decision.
- ✓ Align periods before you group: Inland Revenue will not let members keep mismatched filing frequencies or accounting bases.
Use case: Hamilton cafe Ltd, two sites
Situation: Hypothetical one company, Frankton and Chartwell cafes, each with its own till and accounts. Combined sales already over $60,000. GST: Inland Revenue says add both sites for the threshold, then you may keep one registration or register a branch separately under section 56. Action: If you split, each site gets its own GST number and files its own return. If a site misses a return, section 56(5) still lands on the company. File in myIR.
Use case: Wellington HoldCo and two Ltds
Situation: Hypothetical 100% owned trading companies charging each other management fees. GST: without a GST group those fees are ordinary taxable supplies. With IR374 grouping, section 55(1AE) disregards member to member supplies when working out tax payable. Action: Nominate a GST registered representative, match filing frequency, apply in myIR or post IR374. Read associated persons if you stay ungrouped: associated persons GST.
Imported services still bite
GST Act 1985 section 56B treats a New Zealand branch or division of a person who also operates overseas as a separate person for certain imported goods and services, whether or not the branch is registered under section 56. IR375: a New Zealand branch of a non-resident is treated as separate from its non-resident head office for imported services. IS 24/02: a reverse charge supply under section 8(4B) is not disregarded just because you have a GST group. Reverse charge detail: GST on imported services.
FAQs
What is a GST group?
Inland Revenue: a group is formed when 2 or more entities, which carry out taxable activities, register for GST as a group. Inland Revenue treats the group as a single entity and uses its combined turnover for GST purposes. One GST registered member is the representative and files 1 GST return for the group. Members do not charge GST on sales to other members. This is GST Act 1985 section 55, not an Australian ATO GST group.
What is GST branch registration?
GST Act 1985 section 56 lets a registered person apply for a branch or division to be registered as a separate registered person if it maintains an independent system of accounting and can be separately identified by the nature of its activities or its location. Inland Revenue: each separately registered branch or division has its own GST number, issues invoices under that number, files its own GST returns, and keeps its own GST records. Add all branch turnover together when testing the $60,000 registration threshold.
What GST group form do I use?
The GST group form is Inland Revenue IR374, Goods and services tax application for group registration (April 2022). Only a group representative can register. You can also apply in myIR under Register as a GST group. Inland Revenue processes the request within 10 working days.
Is an ATO GST group the same as a New Zealand GST group?
No. An ATO GST group is an Australian GST grouping rule. New Zealand GST group registration sits in GST Act 1985 section 55 and Inland Revenue’s GST groups pages. Company-only groups need at least 66% common ownership under Income Tax Act 2007 section IC 3, plus either GST registration of each company or the 75% taxable supplies test. Do not copy Australian grouping steps into myIR.
Read Inland Revenue special types of GST registration, registering for GST as a group, register (IR374), Tax Technical IS 24/02 and IS 24/03, GST Act 1985 sections 55 and 56, and Companies Office overseas company registration. Publisher path: About Us and Contact Us.
Last verified 6 September 2026 against Inland Revenue special types of GST registration (1 April 2026), registering for GST as a group (1 April 2023), changing membership, cancelling a GST group, IR374 (April 2022), IR375, IR365 (April 2023), IR255, IS 24/02, IS 24/03, GST Act 1985 sections 55, 55B, 56 and 56B, and the Companies Register overseas company guide. Ads may fund this free site. Not Inland Revenue. Not tax advice. Figures are working papers, not an Inland Revenue assessment.