Quick Summary
A business must register for GST in New Zealand if its turnover (sales from taxable activities), including certain imported services, was over $60,000 for the last 12 months, or is expected to exceed $60,000 in the next 12 months. This applies to businesses conducting a 'taxable activity'.
Details
Mandatory GST Registration Criteria
For businesses operating in New Zealand, GST registration becomes compulsory once certain financial thresholds are met. This ensures that businesses contributing significantly to the economy through taxable activities also contribute to the GST system.
- Turnover Threshold: The key trigger for mandatory registration is a turnover (sales from taxable activities) that either:
- Exceeded $60,000 in the immediately preceding 12-month period, or
- Is expected to exceed $60,000 in the upcoming 12-month period.
- 'Taxable Activity' Requirement: Registration is only possible if the entity is engaged in a 'taxable activity'. This is defined as an activity carried on continuously or regularly, involving the supply of goods or services for consideration.
- Includes Imported Services: The $60,000 turnover threshold also includes the value of certain imported services received by the business.
Source: GST guide (IR375)