What is a nil GST return in New Zealand?

A nil GST return is a return you still lodge for a taxable period when you had no GST to pay or claim. Inland Revenue requires a return for every period while you are registered, even when all boxes are zero.

Is there a penalty for not filing a nil GST return?

Yes. Late filing penalties apply to GST returns even when the balance would have been zero. IRD charges $50 on the payments basis and $250 on the invoice or hybrid basis if you file late.

Do I file nil returns if I stop trading temporarily?

If you stay GST registered and have no sales or purchases in a period, you file a nil return for that period. If you have stopped your taxable activity and do not intend to restart within 12 months, you must cancel GST registration within 21 days instead of filing endless nil returns.

When should I cancel GST instead of filing nil returns?

IRD says you should think about cancelling if turnover for the next 12 months will be under $60,000 or you have filed nil returns for more than 12 months. You must cancel within 21 days if you stop your taxable activity and do not intend to start a new one within 12 months.

Are Kenya KRA nil returns the same as NZ GST nil returns?

No. This guide covers Inland Revenue GST in New Zealand only. Kenya Revenue Authority nil returns on iTax are a separate system with different rules and portals.

Verified 28 August 2026 · IRD filing and cancellation

GST nil returns NZ: file on time when trading slows or stops

A nil GST return is not an exemption from filing. While you remain GST registered, Inland Revenue (IRD) expects a return for every taxable period, even when you had no sales, no purchases, and nothing to pay. That still applies if you pause trading for a season or close down slowly.

This guide explains nil return meaning in New Zealand, how to file nil returns in myIR, penalties for missing them, and when a temporary stop becomes a reason to cancel registration. Rules below are working papers for the 2026/27 year (1 April 2026 to 31 March 2027). GSTCalc.nz is not IRD and this is not tax advice.

What nil returns mean for GST

On IRD filing and paying GST, you must file a GST return for every taxable period using your chosen accounting basis, even if it is a nil return. IRD does not grant extensions of time to file.

In practice a nil return usually means:

No taxable sales in the period (or only zero rated supplies with no net GST).
No claimable purchases with GST in the period.
Box 15 on the GST101A is $0.00 after you submit.

Nil is different from “I forgot to file”. It is a timely return that correctly reports zero activity. Broader filing steps sit in how to file your GST return in myIR and the GST Basics Guide category.

When you must file nil returns

You file nil returns whenever you stay registered through a period with no GST activity to report. Common situations:

Seasonal pause: a farm, tourism, or trades business with no invoices in an off season.
Between contracts: a consultant registered for GST but between projects for one or two periods.
Company still alive but idle: no turnover yet while directors decide next steps.
Wind down in progress: trading has stopped but cancellation is not complete.

Due dates do not change. Most periods are due by the 28th of the month after the period ends. Exceptions: period ending 30 November is due 15 January; period ending 31 March is due 7 May. Confirm dates in myIR or on the GST tax due date calendar.

How to file a nil GST return in myIR

Nil filing uses the same GST101A workflow as a normal return:

Log into myIR and select the correct entity.
Open Returns and transactions → GST → File return for the required period.
Enter $0.00 in Box 5 (total sales) and Box 13 (total purchases) unless you had zero rated sales or adjustments to report separately.
Review Box 15, declare, and submit before the due date.

Cloud accounting tools can also file zeros through the IRD gateway if the period truly had no transactions. Keep evidence that the period was genuinely nil: bank statements with no business income, payroll stopped, and no new invoices issued. Record keeping rules are in GST record keeping NZ.

Penalty for not filing nil returns

Missing a nil return triggers the same late filing rules as missing a return with tax owing. IRD late filing penalties for GST depend on your accounting basis when the return is due:

Accounting basis when return is due	Late filing penalty
Payments basis	$50
Invoice or hybrid basis	$250

There is no special “nil return exemption”. IRD guide IR240 also notes that if you filed all GST returns on time for the last 12 months, your first late file may attract a warning letter rather than an immediate penalty, but a second late return within 12 months can still be penalised. Estimate combined filing and payment exposure with the late GST penalty calculator.

If you simply stop logging in, IRD can issue default assessments and continue charging penalties. The cancelling guide on this site warns that walking away without a formal cancellation leaves your account open indefinitely.

Temporary stop vs permanent stop

IRD treats “slowing down” and “stopping” differently from an admin perspective, even though both can produce nil numbers in a period.

Temporary pause but you plan to trade again

If you still carry on a taxable activity and expect to invoice again within a reasonable horizon, you can stay registered and file nil returns for quiet periods. You must not charge GST on new sales unless you are still registered, and you should not leave GST in your prices after you have decided to cancel.

Stopped taxable activity with no restart planned

On when to cancel your GST registration, you must cancel within 21 days if both apply:

you stop your taxable activity, and
you do not intend to start a new activity within the next 12 months.

Cancelling ends the nil return cycle. You then file a final GST return covering activity up to the cancellation date, including asset adjustments if you keep business assets privately. Full steps: cancelling GST registration.

Nil returns for more than 12 months

IRD says you should think about cancelling if either applies:

turnover for the next 12 months will be under $60,000, or
you have been filing nil returns for more than 12 months.

Long runs of nil filing can signal to IRD that you are no longer carrying on a continuous or regular taxable activity. Accountants have reported IRD contacting businesses after multiple years of nil GST returns to discuss deregistration. IRD typically warns before acting. If you still hold assets on which you claimed GST, cancellation can trigger a deemed sale adjustment in the final return, so plan before IRD forces the issue.

You cannot cancel while GST is still included in your prices, even if turnover is under $60,000. Remove GST from quotes and invoices first, then cancel from the effective date.

Closing a business: nil returns or cancel?

Business.govt.nz closing your business advice matches IRD: if you are GST registered, file all returns up to the date you stop operating, then deregister. Otherwise you will have to keep filing nil returns.

For companies, closing also involves income tax returns, Companies Office removal, and paying debts. GST cancellation alone does not strike a company off the register. For sole traders, file your final income tax year return even if you stopped mid year.

ACC and other agencies are separate. If you stop self employment, notify ACC through its stopped business forms so levies can be reassessed. That does not replace GST filing or cancellation in myIR.

Non active companies and GST nil returns

Do not confuse GST nil returns with IRD’s non active company process. A non active company declaration (IR433) can exempt a company from filing income tax returns when it had no income, deductions, or asset disposals in a year.

If the company is GST registered, IRD says GST registration must be ceased. Nil GST returns are not a substitute for cancellation. Without an accepted non active exemption, failing to file income tax returns attracts late filing penalties separate from GST.

Practical checklist

Confirm whether the pause is temporary or you have stopped taxable activity for 12 months or more.
If staying registered, diarise every GST due date and file nil returns on time.
If closing, cancel in myIR, file the final return, and handle retained assets at market value.
Stop showing GST in prices from the cancellation date onward.
Keep bank and accounting records showing why the period was nil.
Review six monthly filing if eligible and activity is genuinely low volume.

Registration choices and threshold tests are in how to register for GST in NZ. Common slip ups, including ghost registrations, are in 10 common GST mistakes in NZ.

FAQs

What is a nil GST return?

A lodged GST return for a period with no net GST to pay or claim, usually because sales and purchases were both zero.

Can I skip filing if I owe nothing?

No. IRD requires the return itself. Zero tax owing is not a filing waiver.

What is the penalty for not filing nil returns?

$50 late filing on payments basis, $250 on invoice or hybrid basis, subject to IRD warning rules for first late files.

I stopped trading for six months. What should I do?

If you will resume a taxable activity within 12 months, file nil returns each period while registered. If you will not resume within 12 months, cancel within 21 days of stopping.

Is this the same as Kenya KRA nil returns on iTax?

No. Kenya Revenue Authority nil returns on itax.kra.go.ke are outside New Zealand law. This page is IRD GST only.

Sources and verification

Last full check: 28 August 2026. This page was matched to IRD filing and paying GST, when to cancel your GST registration, your final GST return, late filing penalties, non active companies, Business.govt.nz closing your business, GST guide IR375, and IR240.

GSTCalc.nz is a free New Zealand publisher of tax calculators and guides. Ads may fund the site. We are not Inland Revenue and this is not tax advice. Figures are working papers. Publisher details: About us and Contact. Privacy: Privacy policy.