New Business GST Compliance Roadmap
Starting a business in Aotearoa? This step-by-step roadmap ensures you stay compliant, claim every refund, and avoid IRD penalties from day one.
The 10-Second Rule
Register early if you have high setup costs. Choose **Payments Basis** to protect your cash flow. Use cloud accounting (Xero/MYOB) to automate your "Tax Invoices". File every **2 months** to keep your admin manageable.
The Startup Journey
Step 1: Choose Your Accounting Basis
You only pay GST when money hits your bank. This is **highly recommended** for new businesses to avoid paying tax before you've been paid.
You pay GST as soon as you send the invoice. This can drain your cash flow if your customers are slow payers.
Step 2: Setup Airtight Invoicing
To allow your customers to claim GST, your invoices must meet strict IRD criteria. Use a tool like Xero or our [Invoice Generator] to automate this.
- ✓ **"Tax Invoice"**: The words must be prominent.
- ✓ **GST Number**: Your 8 or 9-digit IRD/GST number.
- ✓ **GST Amount**: Clearly stated, or a "GST Inclusive" note.
The $50 Rule
You don't need a full "Tax Invoice" for business purchases under **$50** (including GST), but you still need a receipt. For anything over $50, you **cannot** claim GST back without a valid Tax Invoice. "Order Confirmations" usually aren't enough!
Step 3: Filing Frequency
The default choice. Keeps you accountable without excessive paperwork.
Available if turnover is under $500k. Good for very low-volume businesses.
Mandatory for big business ($24m+), but startups use it to get refunds faster.
Frequently Asked Questions
Mandatory when turnover exceeds $60,000. Use our [Threshold Guide](https://gstcalc.nz/the-60000-gst-threshold-guide-nz/) for full details.
Yes, you can claim a portion of your utility and insurance GST based on the area of your home used for business.
Xero, MYOB, and Hnry are the most popular in NZ. They all sync directly with the IRD to make filing a one-click process.
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