Quick Summary
Monthly GST filing is mandatory for businesses in New Zealand if their annual sales exceed $24 million in any 12-month period. For GST groups, this $24 million threshold applies to the group's total sales. However, any business can choose to file monthly regardless of turnover.
Details
Obligation for Monthly GST Returns
While many businesses in New Zealand opt for two-monthly or six-monthly GST filing, certain thresholds trigger a mandatory requirement for monthly returns. This is typically for larger businesses with higher transaction volumes.
- Individual Business Threshold: If your business's total sales (from taxable activities) are over $24 million in any rolling 12-month period, you are required to file your GST returns monthly.
- GST Group Threshold: For businesses that are part of a GST group, the $24 million threshold applies to the collective sales of the entire group.
- Voluntary Monthly Filing: It's important to note that even if your sales are below this threshold, you can still choose to file monthly. This can be advantageous for businesses that regularly expect GST refunds, as it allows for more frequent cash flow into the business.
Source: GST guide (IR375)