Quick Summary
Yes, if you have a 'taxable activity' in New Zealand, you can voluntarily register for GST even if your turnover is less than the mandatory $60,000 threshold. Many businesses choose to do this to claim back GST on their expenses.
Details
The Option of Voluntary GST Registration
While GST registration becomes mandatory once a business's turnover reaches $60,000, smaller businesses in New Zealand have the option to register voluntarily. This can be a strategic decision for several reasons.
- Condition: You must still be conducting a 'taxable activity' – meaning you are regularly supplying goods or services for consideration.
- Benefits: Registering voluntarily allows you to:
- Claim GST: Reclaim GST paid on your business purchases and expenses, which can be significant for start-up costs or businesses with high expenses.
- Appear More Professional: Some businesses prefer to be GST registered as it can give an impression of being a more established entity.
- Considerations: Once registered, you must charge GST on your sales, file regular GST returns, and meet all GST compliance obligations.
Source: GST guide (IR375)