Fantail Finances

Goods and Services Tax (GST) is a 15% tax added to most goods and services in New Zealand. It is completely separate and unrelated to Income Tax. Registered businesses and sole-traders add GST to the price of their products/services and collect it from customers. They then pay this GST to the government, while also reclaiming any GST they've paid on their own business expenses.

You must register for GST if your business turnover exceeds NZD $60,000 in any 12-month period. If your turnover is less than NZD $60,000 you can still choose to register voluntarily if you wish.

Pros: You can claim back GST on business expenses and appear more established to clients.

Cons: You need to keep detailed records and file regular GST returns, which can be time-consuming.

You can register for GST on myIR (or we can do it for you). Filing frequencies are monthly, two-monthly, or six-monthly, depending on your turnover and preference. Monthly filing generally suits larger businesses whereas two-monthly or six-monthly is usually better for smaller businesses. It’s always a good idea to have a chat with us about your planned activities so that we can confirm the best set up.