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Quick Summary
In New Zealand, GST-registered businesses can choose their filing frequency: monthly, two-monthly, or six-monthly. Your choice must align with your balance date, and if no choice is made upon registration, the IRD typically defaults to two-monthly.
Detailed Explanation
Choosing Your GST Filing Period
Businesses registered for GST in New Zealand have flexibility in how often they file their GST returns, subject to certain conditions. The available options are designed to suit different business sizes and operational cycles.
- Monthly Filing:
- Mandatory: Required if your annual sales are over $24 million (or for a GST group if the group's sales exceed this amount).
- Optional: Any business can choose to file monthly, even if their turnover is below the threshold. This might be beneficial for businesses that frequently receive GST refunds.
- Two-Monthly Filing:
- This is the default option if you don't select a frequency when registering for GST.
- Your taxable period for two-monthly returns must align with your balance date (e.g., if you have a March balance date, periods are April-May, June-July, etc.).
- Six-Monthly Filing:
- Typically chosen by smaller businesses with lower transaction volumes.
- Like two-monthly, your taxable period must align with your balance date.
Important: Your chosen GST taxable period must align with your balance date to ensure consistent financial reporting.
Official Source / Citation:
GST guide (IR375)