NEED A HAND WITH GST?
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Keeping track of your books is necessary for all business owners, as is filing GST returns if you're GST registered, but they don't have to be a drag. Focus on what you do best, while we handle your books 🤓
Goods and Services Tax (GST) is a tax on most goods and services sold by businesses. While it feels like a tax on businesses, it really isn’t - it’s paid by people living out their day-to-day lives.
Businesses act like tax collectors for the government – charging an additional 15% on top of each sale, which is then passed on to Inland Revenue.
A business’s process of forwarding the GST to the government is called a GST Return. In New Zealand, GST filing frequency is monthly, 2-monthly, and 6-monthly. Your annual turnover can help you to determine your GST filing frequency.
Who needs to register for GST?
In New Zealand, the GST registration threshold is $60,000. This means you need to register for GST if your business turnover is more than $60,000 in the past 12 months, or if you expect it to exceed $60,000. This threshold applies to business owners, freelancers, and contractors.
You’ll also need to register for GST if you’re required to charge GST for the services you provide. For example, taxi or ride-share services no matter your turnover.
It is important to know if you have a salaried job and a side hustle, this threshold only applies to the money you earn from your side hustle.
GST return dates 2022-2023
GST filing is often required monthly, two-monthly, and six-monthly. The frequency can be limited depending on your turnover, but your accountant can help you make the right choice.
For example, businesses that have a turnover above $24 million are required to file their GST on a monthly basis. Two-monthly is for businesses that have a turnover between $500,000 and $24 million.
If your business turnover is below $500,000 a year, can choose to file GST every six months. IRD’s tax due date calendar can give you more information on when your GST return is due.
How to file GST returns?
You can either choose to file your GST returns yourself or via an accountant or tax agent.
DIY: You can choose to either lodge online through myIR or via your online accounting software. You can find more details on IRD's website.
Via an accountant or tax agent: If you have an accountant or a tax agent, you can let them take care of it for one less thing to worry about.