GST Return Calculator

The frequency of your GST return filing in New Zealand depends on your annual taxable turnover. If your turnover is over $24 million per year, you must file monthly. The standard filing period is every two months (6 returns per year), which applies to most registered businesses. If your turnover is $500,000 or less per year, you may be eligible to file 6-monthly (twice a year). Your filing frequency is determined when you register for GST and can be changed later by applying to IRD. Returns must be filed and any GST owing must be paid by the 28th of the month following the end of the taxable period (with some variations). Late filing and late payment both attract penalties and use-of-money interest. Most businesses file their GST return online through myIR on the IRD website using the GST101 form. Source: IRD — Filing and Paying GST (ird.govt.nz/gst).

In New Zealand, you must register for GST if your taxable turnover is, or is expected to be, $60,000 or more in any 12-month period. This threshold has been $60,000 since 2009 and applies to the total value of taxable supplies you make (goods and services subject to GST). Turnover includes cash sales, credit sales, and the value of goods you take from your business for personal use. You can also voluntarily register for GST if your turnover is below $60,000, which may be beneficial if you have significant GST costs to reclaim. Once registered, you must charge GST on all your taxable sales, file regular returns, and pay net GST to IRD. If you are approaching the $60,000 threshold, you should start planning for registration, as penalties apply for late registration. Source: IRD — GST Registration (ird.govt.nz/gst/registering-for-gst).

As a GST-registered business in New Zealand, you can claim input tax credits (GST refunds) on the GST you pay when purchasing goods or services for use in your taxable business activities. To claim an input credit you generally need a valid tax invoice from the supplier for purchases over $50 — for purchases of $50 or less, a simplified invoice or receipt may suffice. Common claimable expenses include: business equipment, office supplies, accounting and legal fees, business vehicle costs (portion used for business), advertising, business premises rent, and professional subscriptions. You cannot claim GST on private or non-business expenses, or on exempt supplies such as residential rent and financial services. If goods or services are used partly for business and partly for private purposes, you can only claim the business-use proportion. Source: IRD — GST Input Tax Credits (ird.govt.nz/gst).

GST-registered businesses in New Zealand can account for GST on either an invoice basis or a payments basis. On the invoice basis (the default for most businesses), you account for GST when a tax invoice is issued or received — regardless of when cash actually changes hands. This means you may owe GST to IRD before your customer has paid you, which can create cash flow challenges. On the payments basis (available to businesses with turnover under $2 million), you account for GST only when you actually receive payment from customers, or when you actually pay your suppliers. This aligns your GST liability with your cash flow. Most small businesses prefer the payments basis for cash flow reasons. The hybrid basis, where income is on invoice and expenses are on payments, is also available in some circumstances. You elect your accounting basis when registering for GST and can apply to change it later. Source: IRD — GST Accounting Basis (ird.govt.nz/gst).