Who needs to register for GST?

Find out who is required to register for GST and learn about special types of GST registration.

• When to register for GST

• Special types of GST registration

• Voluntary registration

• Next steps in the GST registration process

When to register for GST

You must register for GST if you carry out a taxable activity and:

• your turnover was $60,000 or more in the last 12 months or will be $60,000 or more in the next 12 months, or

• your prices include GST.

As soon as any of these things apply to you, you must register for GST within 21 days.

What do we mean when we say taxable activity and turnover?

No need to register for GST

You don't have to register for GST simply because you start a company, have an IRD number, or because you're in business or trading.

Specifically, you don't have to register for GST if:

• your turnover was under $60,000 in the last 12 months or is expected to be under $60,000 in the next 12 months

• your turnover exceeds $60,000 because you have sold business assets due to:

• stopping your taxable activity

• substantially or permanently reducing the scale of your taxable activity, or

• replacing your plant or assets.

Special types of GST registration

Some circumstances require a special type of GST registration. These are:

• GST registration of non-profit bodies

• When you register a non-profit body for GST, you may apply to us to treat each branch or division separately.

• GST registration of separate branches or divisions

• If you operate your business in separate branches, you may want to register branches or divisions for GST separately.

• Registering for GST as a group

• When you register for GST as a group, you need to elect a group representative (who must be GST registered) to file GST returns on behalf of the group.

• Registering for GST as an agent or representative

• You may need to register for GST as an agent or representative if you take over part or all of a taxable activity on behalf of a GST-registered person, for example as a liquidator or receiver.

Voluntary registration

If your turnover is under $60,000 you can voluntarily register for GST, but bear in mind:

• you have to account for GST on all of your taxable goods and services, including grants and subsidies

• complying with GST requirements takes time - you have to file regular GST returns

• if you cancel your GST registration you have to pay GST on the open market value of any business assets that you keep for private use.

We encourage you to register only when you know your turnover will be more than $60,000 in the next 12 months. For example when your turnover is $5,000 per month and you expect to maintain that level all year.