How to Register for GST in New Zealand: Step-by-Step Guide
Whether you have just hit the $60,000 threshold or you are choosing to register voluntarily, this guide walks you through every step of the GST registration process in NZ. From gathering your documents to submitting through myIR, we cover it all.
In This Guide
- Do You Actually Need to Register for GST?
- What You'll Need Before You Start
- Step-by-Step: Registering Through myIR
- Choosing Your Filing Frequency
- Invoice Basis vs. Payments Basis
- What Happens After You Register
- Should You Register Voluntarily?
- 5 Common Registration Mistakes
- Frequently Asked Questions
Registering for GST is one of the first big compliance steps for any NZ business owner. Once you are registered, you collect 15% GST on your sales and claim it back on your business expenses. Done right, it is a straightforward online process. Done wrong, it can mean backdated GST bills, late penalties, and a letter from IRD you would rather not receive.
This guide is written for the 2026 to 2027 tax year (1 April 2026 to 31 March 2027) and reflects current rules from Inland Revenue (IRD). No jargon, no filler. Just the straight steps.
1. Do You Actually Need to Register for GST?
Before you do anything, work out whether GST registration is compulsory or voluntary for your situation. A lot of people miss the trigger date and end up owing backdated GST on sales they never charged it on.
Mandatory Registration: The $60,000 Threshold
You must register if your taxable turnover has exceeded, or is reasonably expected to exceed, $60,000 in any 12-month period. That is a rolling 12-month window, not a calendar year. The moment you expect to cross it, you have 21 days to register.
Do Not Wait Until You Have Already Crossed $60,000
The obligation kicks in when you expect to hit the threshold, not after you have already gone past it. Land a big contract that will push you over? Register before you invoice, otherwise you are personally liable for GST you should have collected but did not.
High Risk if IgnoredWho Doesn't Need to Register?
Employees on PAYE: your employer handles tax. GST does not apply to wages or salaries.
Exempt-only supplies: for example, residential rent and financial services. GST registration not required.
Hobby activities: activities that do not constitute a "taxable activity" under the GST Act.
Non-residents with no NZ activity: overseas entities with no taxable activity in New Zealand.
Official IRD guidance: ird.govt.nz : Do you need to register for GST?
2. What You'll Need Before You Start
The online registration takes around 15 to 20 minutes, but only if you have everything ready beforehand. Get these sorted before you open myIR:
Personal or business IRD number for the entity being registered. Your GST number will be this same number. No separate one is issued.
An active myIR account. Do not have one? Set it up first. You will need your IRD number and a valid NZ phone or email for identity verification.
Required for GST refunds from IRD. Must be in the registered entity's name. A personal account will not be accepted.
Your Business Industry Classification code. Use the IRD BIC finder to look yours up. Do not guess this one.
Total taxable sales for the last 12 months, plus your estimate for the next 12 months. Have both figures ready before you open myIR.
The date your GST takes effect. This is usually today, or the date you crossed (or expect to cross) the $60,000 threshold.
3. Step-by-Step: How to Register via myIR
GST registration is entirely online through myIR. No paper forms and no IRD office visit needed. Whether you are in Auckland, Christchurch, Hamilton, or on a farm in Waikato, the process is exactly the same for everyone.
Log In to myIR
Go to myir.ird.govt.nz and sign in. No account yet? Create one first. You will need your IRD number and a NZ phone or email for identity verification.
Find "Register for New Tax Accounts"
On your myIR dashboard, look for the "I want to…" box. Click "More" if the option isn't visible, then select "Register for new tax accounts".
Choose Your IRD Number & Select GST
Choose the IRD number for the entity being registered (personal number for sole traders, company number for a limited company). Then select "Goods and services tax (GST)" from the list of tax types.
Enter Your Business Information
Fill in your business contact details, bank account number, BIC code, and your 12-month turnover figures (past and forecast). Double-check everything. Errors here can cause processing delays.
Choose Filing Frequency & Accounting Basis
Select how often you will file GST returns (monthly, two-monthly, or six-monthly) and your accounting basis (invoice or payments). These choices affect your cash flow. Read Sections 4 and 5 before deciding.
Review Your Application
myIR shows you a full summary. Check your start date, bank account, BIC code, and all figures before continuing. Some changes require a phone call to IRD to correct after submission.
Submit & Wait for Confirmation
Submit your application. IRD will process it within 10 working days, often faster at around 2 to 5 days. You will receive confirmation via myIR and a letter to your registered address. Your GST number is the same as your IRD number.
Official links:
Open myIR Portal IRD GST Registration Guide Find Your BIC Code
4. Choosing Your GST Filing Frequency
Filing frequency determines how often you submit a return and make a payment to IRD. You choose this during registration. Pick carefully because it directly affects your cash flow and admin burden.
| Frequency | Returns/Year | Who It Suits | Turnover Requirement |
|---|---|---|---|
| Monthly | 12 | Businesses regularly in a refund position: importers and large retailers with high input credits | Mandatory over $24M/yr. Optional otherwise. |
| Two-Monthly Most Common | 6 | Most small to medium NZ businesses: tradies, freelancers, cafes, and retailers | Available to all registered businesses |
| Six-Monthly | 2 | Very small businesses with simple, predictable income | Generally under $500,000/yr; conditions apply |
💡 What do most Kiwi businesses choose? The vast majority go with two-monthly. It is the sweet spot. Not so frequent that you are constantly filing, but regular enough that you are never hit with a massive catch-up bill. Whether you are a tradie in Tauranga, a designer in Wellington, or running a cafe in Dunedin, two-monthly is almost always the right starting point.
Change your frequency later via: IRD : Changing your GST filing frequency
5. Invoice Basis vs. Payments Basis
Your accounting basis determines when you account for GST, and it has a direct impact on your cash flow, especially if your clients are slow payers.
You account for GST when money is actually received or paid. Best for most small NZ businesses, especially tradies, contractors, and anyone with slow-paying clients.
Available under $2M turnover/yrYou account for GST when an invoice is issued or received, regardless of when payment arrives. Mandatory over $2M/yr. The default if you do not actively choose.
Default if you don't chooseReal-World Example
You invoice a client $5,000 + GST in March. They do not pay until May.
Payments Basis: GST not due until May when cash hits your account
For most tradies and contractors, Payments Basis is much better for cash flow. Full comparison: Invoice Basis vs Payments Basis: Full Guide
6. What Happens After You Register?
Once IRD confirms your registration, you have immediate obligations that start from your registration date, not from when you file your first return.
1
GST Tab Appears in myIRA "GST" section appears in your myIR dashboard. This is where you will file all returns and track your balance going forward.
2
Start Charging 15% GSTAdd 15% GST to all taxable invoices from your registration date. Do not charge before it and do not forget to start on the exact day.
3
Issue Taxable Supply InfoSince April 2023, "tax invoices" are replaced by Taxable Supply Information (TSI). Required on all GST-inclusive supplies over $50.
GST Is Not Your Money
The 15% GST you collect from customers belongs to the IRD, not you. Open a dedicated bank account for it from day one and transfer the GST portion of every payment across immediately. This is the number one mistake new registrants make in NZ. Spending it before your return is due is the most common cause of GST debt for small businesses.
Most Common Cause of GST Debt in NZFile Returns on Time
Late filing penalties start at $50 per return. Consistent late filing can trigger an IRD review of your account.
Keep Records 7 Years
IRD requires all records supporting your GST returns to be retained for a minimum of seven years.
Set GST Aside Weekly
Move the 15% GST component of every payment you receive into your dedicated GST account straight away. Do not wait.
7. Should You Register Voluntarily?
If your turnover is below $60,000, voluntary registration can make strong financial sense. But it is not right for every business. Here is how to think through it:
- 1. You have high business expenses with GST (tools, equipment, software, rent)
- 2. Your clients are GST-registered businesses who can claim it back anyway
- 3. You are approaching $60,000 and it is better to register proactively
- 4. You import goods and want to claim GST on imports
- 1. Your clients are everyday consumers. They cannot claim it back, so you would effectively raise your prices by 15%
- 2. You have very few GST-able expenses to claim
- 3. You don't want the admin overhead of regular filing
Full guide: Should I Register for GST Voluntarily: Complete NZ Guide
8. 5 Common GST Registration Mistakes
1. Registering Too Late After Crossing $60,000
The obligation starts when you expect to cross the threshold, not after you have already exceeded it. If you are late, you may owe backdated GST on sales you never charged it on. Fix this by checking your rolling 12-month revenue every single month.
Risk: Backdated GST Debt2. Choosing the Wrong Accounting Basis
Defaulting to Invoice Basis when Payments Basis would better suit your cash flow is a common mistake. If you're a tradie or contractor who invoices clients on long payment terms, this choice alone can cause serious cash flow problems every return period.
Risk: Ongoing Cash Flow Problems3. Using the Wrong BIC Code
An incorrect BIC code affects how IRD profiles your business for risk and audit purposes. Always use the official IRD BIC lookup tool. Do not guess or pick a similar-sounding category.
Risk: Incorrect IRD Risk Profiling4. Spending the GST Before You File
The 15% GST you collect belongs to the IRD, not you. Spending it and scrambling to find the money when your return is due is the single most common cause of GST debt for small businesses in NZ. A separate bank account set up from day one solves this entirely.
Risk: GST Debt + Use-of-Money Interest5. Not Including GST on Invoices from Your Registration Date
Once registered, every taxable invoice must include 15% GST from your effective registration date. Invoices issued after that date without GST means you're underpaying IRD and may face shortfall penalties on the difference.
Risk: Shortfall PenaltiesFrequently Asked Questions
More in the GST Basics Hub
Essential guides for NZ business owners navigating GST registration, filing, and compliance.
Which accounting basis saves you more cash? Full comparison with real NZ examples.
Under $60k? Here's how to decide if voluntary GST registration makes financial sense.
Closing down or going below $60k? The deemed sale rule you must know before deregistering.
Step-by-step walkthrough for submitting your GST101A return in myIR.