Which GST accounting basis and filing frequency should I use?

Income tax Dates

JUL 28

AIM instalments are due if you file GST monthly and have a March balance date.
AUG 28

AIM instalments are due if you have a March balance date.
AUG 28

Provisional tax payments are due if you have a March balance date and use the standard, estimation or ratio options.

When you register for GST, you need to choose an accounting basis and a filing frequency. This page explains the options and who's eligible, and there is a tool at the bottom of the page, to help you decide the best accounting basis for you.

Choosing your GST accounting basis

The accounting basis you choose determines how you account for GST collected from your sales and income, and GST you’ve paid on purchases and expenses.

You choose your accounting basis when you register for GST.

Using a 4-weekly accounting cycle

We can approve alternative dates as your taxable period end dates. There must be good commercial reasons to change the dates.

We may approve monthly or 2-monthly filing so that taxable period end dates align with a 4-weekly accounting cycle.

If you have an alternative taxable period end date approved, to determine your cut-off dates, read Prescribed GST methods for businesses using four-weekly accounting cycle.

Accounting basis	Who's eligible	What you need to do
Payments	If your total sales are: $2 million or less in the last 12 months likely to be $2 million or less in any 12-month period beginning on the first day of a month.	In your GST return for the period include: amounts you've been paid by customers amounts you've paid to suppliers if you hold taxable supply information.
Invoice	Anyone	In your GST return for the period include: amounts you’ve notified customers to pay by invoice, even if you have not been paid yet the full sale price amount if customers have paid any amount before you’ve invoiced them amounts you’ve paid to or been invoiced by suppliers if you hold taxable supply information, even if you have not paid the full amount yet.
Hybrid	Anyone. Note: This method is not commonly used by small businesses because of negative cashflow consequences. This is because you may return GST on invoiced sales before you have received payment, but you can only claim GST when you have paid for your purchases (not when invoiced).	Use the invoice basis for your sales. Use the payments basis for your expenses.

Accounting basis

Who's eligible

What you need to do

Payments

If your total sales are:

$2 million or less in the last 12 months
likely to be $2 million or less in any 12-month period beginning on the first day of a month.

In your GST return for the period include:

amounts you've been paid by customers
amounts you've paid to suppliers if you hold taxable supply information.

Invoice

Anyone

In your GST return for the period include:

amounts you’ve notified customers to pay by invoice, even if you have not been paid yet
the full sale price amount if customers have paid any amount before you’ve invoiced them
amounts you’ve paid to or been invoiced by suppliers if you hold taxable supply information, even if you have not paid the full amount yet.

Hybrid

Anyone. Note: This method is not commonly used by small businesses because of negative cashflow consequences. This is because you may return GST on invoiced sales before you have received payment, but you can only claim GST when you have paid for your purchases (not when invoiced).

Use the invoice basis for your sales.

Use the payments basis for your expenses.

Choosing your GST filing frequency

You need to file regular GST returns. How often you file depends on your sales.

You choose your filing frequency when you register for GST.

Filing frequency	Who is eligible	Who it's suitable for
Monthly	Anyone. You must file monthly if your sales are over $24 million in any 12-month period. For a GST group the $24 million applies to the group as a whole.	Customers likely to get regular GST refunds.
Two-monthly	Anyone with sales under $24 million in any 12-month period. For a GST group the $24 million applies to the group as a whole.	Customers who find regular filing helps them keep on top of paperwork.
Six-monthly	Anyone with sales under $500,000 in any 12-month period. For a GST group the $500,000 applies to the group as a whole.	Customers with few sales and purchases. You only need to file two returns a year but it can be a big job to account for six months' worth of trading in one go.

Once you've chosen your filing frequency, make note of when your returns and payments are due.

What's best for you?

Our online tool can help you choose the most suitable accounting basis and filing frequency.

Ko tētahi te tikanga kaute me te auau o te tuku hei whakamahi māku? Which GST accounting basis and filing frequency should I use?