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Online GST registration

The following information supports the online GST registration form. You can find this and all our other interactive forms at the online services page

Question 1 - Do you have an IRD number for your business?

Your business needs an IRD number before it can register for GST. Please keep the number handy and tell us what it is whenever you contact us.

If you have misplaced your IRD number please call us on 0800 377 774 to confirm what your number is.

Business IRD number (partnership, company, non-profit organisation, trust/estate)
Your business must have its own IRD number if it is a partnership, company, non-profit organisation or trust/estate. Use this number when completing the GST registration form. If you don't have a business IRD number you can apply for one by filling in an IRD number application -- non-individual form and posting it to Inland Revenue. You can also fill in and post a GST registration form at the same time.

Personal IRD number (sole trader)
You need a personal IRD number as a sole trader. If you have earned income in New Zealand before or filed a tax return you should already have an IRD number. Use this number if registering for GST as a sole trader.

If you don't have one already, fill in an IRD number - individual application form (IR595) and follow the instructions on the form. You can also fill in and post a GST registration form at the same time.

Panel 5 - Postal address

If your address is a PO Box number, please show your box lobby (this is the location of your post office box, such as "Wellington Mail Centre" or "Shortland Street"). If you are unsure what your box lobby is or whether you have one, please contact NZ Post on 0800 501 501.

Note: If you use a tax agent to prepare your GST returns do not show their address here. Please ask them to give us the address for your GST mail.

Question 9 - When you must register for GST

You must register for GST when you are conducting a taxable activity that meets any of these conditions:

• It has had a turnover (sales and income) of more than $60,000 over the last year (this month plus the previous 11 months).
• You expect it to have a turnover of more than $60,000 over the next year (this month plus the next 11 months)
• You indicate that prices include GST (eg, in a price list or on an invoice).

If your annual turnover is less than $60,000, you may still choose to register for GST.

A taxable activity is an activity carried on continuously or regularly by a business, trade, manufacturer, professional, association or club. It includes any activity that supplies, or intends to supply, goods and services to someone else for a consideration (money, compensation, reward) but not necessarily for profit.

Taxable activities do not include:

• working for salary or wages
• being a company director
• hobbies or any private recreational pursuit
• private transactions such as the occasional sale of household or domestic items
• making exempt supplies.

Question 10 - What accounting basis to use

When you are registered for GST, you need to keep records of your GST transactions and account for these transactions in your GST returns. These are the three methods of accounting for GST:

• payments (or cash) basis - account for GST in the taxable period when you make or receive a payment. This option is available to businesses whose taxable supplies were $2 million or under for the previous 12 months, or whose taxable supplies are not expected to go over $2 million in the next 12 months. It is the most common method of accounting among small businesses.
• invoice (accruals) basis - account for GST in the taxable period when you issue or receive an invoice, or receive or make a payment, whichever is earlier.
• hybrid basis - account for GST on your sales income in the taxable period when you issue an invoice or receive a payment, whichever is earlier, and claim GST on your expenses in the taxable period when you make a payment.

Question 11 - How often to file GST returns?

When you register for GST, you choose how often you are going to file GST returns (your taxable periods).

There are three taxable periods available. Your taxable period may be determined by your turnover.

Your turnover in any 12 month period	Taxable periods you can choose
Up to $500,000	One, two or six monthly
$500,001 to $24 million	One or two monthly
Over $24 million	One monthly only

If you expect to receive regular GST refunds (eg as an exporter) you may want to file GST returns every month.

You may find it easier to deal with GST if you complete returns for a shorter period (eg one or two months) even if your taxable supplies are $500,000 or less.

Question 13 - Do you make exempt supplies?

Exempt supplies are not liable for GST. You do not include exempt supplies in your GST return. Some examples of exempt supplies are:

• financial services
• donated goods and services sold by non-profit bodies
• renting a dwelling for use as a private home
• the supply of fine metals (gold, silver, and platinum), other than zero-rated supplies
• penalty interest.

 

 

Date published: 31 Mar 2009

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