GST Returns in New Zealand: A Step-by-Step Guide for Small Business Owners
Filing GST doesn’t have to be stressful. Here’s what New Zealand small business owners need to know about registering, calculating, and filing GST returns, and when it’s worth handing the job to someone else.
What is GST?
GST (Goods and Services Tax) is a 15% tax added to most goods and services sold in New Zealand. If your business is GST-registered, you collect GST on sales and can claim back GST on business expenses.
Do you need to register for GST?
You must register for GST once your turnover exceeds, or is expected to exceed, $60,000 in any 12-month period and you carry out a taxable activity. Below that threshold, registration is optional, some businesses register early so they can claim back GST on setup costs, even before they hit the threshold.
Choosing a filing frequency
Once registered, you choose how often you file:
- Two-monthly — the default filing frequency for most businesses, helping them stay on top of
their GST paperwork. - Six-monthly — available if your turnover is under $500,000, for less paperwork
- Monthly — useful if you regularly claim GST refunds, since you get the money back sooner
GST return due dates
Returns and payment are due by the 28th of the month after your taxable period ends, with two exceptions: the period ending 30 November is due 15 January, and the period ending 31 March is due 7 May. Mark these in your calendar, IRD doesn’t grant filing extensions.
How to calculate GST
Your return compares two numbers:
- Output tax — GST you charged on sales
- Input tax — GST you paid on business purchases and expenses
The difference is what you owe IRD, or what they owe you if your input tax is higher, common after a big equipment purchase.
Step-by-step: filing through myIR
- Log in to your myIR account
- Select your GST account, then "File a return"
- Enter your total sales and income, and your total purchases and expenses
- Check the GST amount myIR calculates against your own records for GST-applicable transactions
- Submit the return
- Pay any GST owing by the due date, or set up an automatic payment
If you use Xero or similar software, it can prepare and file your GST return directly from your bookkeeping, which cuts out most of the manual entry.
Common GST mistakes to avoid
- Forgetting to register once you cross the threshold
- Claiming GST on personal expenses
- Missing the filing deadline, which can trigger penalties and interest
- Not keeping proper tax invoices to support expense claims
When to get help
GST trips up small business owners not because it’s complicated, but because it’s easy to lose track of it amid everything else running a business involves. If you&’d rather hand your GST returns to someone who does this every day, get in touch with our accounting and taxation team, we can take it off your plate entirely.