Skip to Content
MenuClose

myIR, payments and more

Claiming and returning GST

The way you choose to claim and return GST is called an accounting basis. When you register for GST, we ask you which accounting basis you want to use. There are three methods to choose from:

Payments basis 

  • Return the GST on your sales and income in your GST return once you receive payment from your customers.
  • Claim the GST for your purchases and expenses in your GST return once you pay for them.

Who can use the payments basis?

  • Any GST registered person with an annual turnover of less than $2 million.
  • Most small businesses use the payments basis.

Invoice basis 

  • Return the GST on your sales and income in your GST once you issue an invoice or receive a payment, whichever comes first.
  • Claim the GST for your purchases and expenses in your GST return once you receive an invoice or make a payment, whichever comes first.

Who can use the invoice basis?

  • Any GST registered person.

Hybrid basis 

  • Return GST on your sales and income in your next GST return after you issue an invoice or receive a payment, whichever comes first. This is the same as the invoice basis.
  • Claim the GST for your purchases and expenses in your next GST return after you've paid for them. This is the same as the payments basis.

Who can use the hybrid basis?

  • Any GST registered person.
  • Not commonly used because it can get complicated.

Next steps

Once you've worked out how you want to return and claim GST, find out the next steps in the GST registration process.

Related products, services and links