The Complete NZ GST Guide for Small Business (2026)
GST doesn't have to be confusing. This is everything a New Zealand small business owner needs to know — from registration to filing — in plain English.
What is GST?
Goods and Services Tax (GST) is a 15% tax on most goods and services sold in New Zealand. If your business is GST-registered, you charge GST on your sales (output tax) and claim back GST on your business purchases (input tax). The difference is what you pay to (or get refunded from) IRD.
Do I need to register?
You must register for GST if your business turnover exceeds $60,000 in any 12-month period.
You can voluntarily register if you're under $60,000. This makes sense if:
- Your business expenses include significant GST you want to claim back
- You're buying equipment or setting up a new business
- Your clients are other GST-registered businesses (they prefer GST invoices)
Filing periods
IRD offers three filing frequencies:
| Period | Who it's for | Due date |
|---|---|---|
| Monthly | Turnover > $24M, or voluntary | 28th of following month |
| Two-monthly | Most small businesses (default) | 28th of month after period end |
| Six-monthly | Turnover < $500K, voluntary | Fixed: Apr–Sep (due 28 Oct) and Oct–Mar (due 7 May) |
Exception dates: Period ending 31 March → due 7 May. Period ending 30 November → due 15 January.
Invoice basis vs payments basis
Invoice basis: You account for GST when you issue/receive an invoice, regardless of when the money moves.
Payments basis: You account for GST when the money actually changes hands. Better for cash flow. Available if turnover is under $2M.
Most small businesses should use payments basis — it's simpler and better for cash flow.
What's GST-exempt?
- Financial services (bank fees, insurance premiums, interest)
- Residential rent
- Wages and salaries
- Donations to registered charities
- Exports (zero-rated, not exempt — you can still claim input GST)
Common mistakes
- Claiming GST on exempt supplies: You can't claim GST back on bank fees, insurance, or residential rent.
- Missing the $50 threshold: For purchases over $50, you need a proper tax invoice to claim input GST. Keep your receipts.
- Mixing private and business: If your phone is 50% business use, you can only claim 50% of the GST. Be honest — IRD audits this.
- Late filing: Penalties start at 1% of unpaid tax immediately, plus 4% incremental for each month you're late. Don't be late.
- Not registering when you should: If you exceed $60K and don't register within 21 days, you're liable for GST from the date you should have registered.
How Ledger makes GST easy
Ledger automatically calculates your GST from coded transactions. When it's time to file, you get a one-click GST return with Box 5–13 pre-filled (the same numbers myIR asks for). Export as CSV or JSON. File in myIR in under 5 minutes.
The AI pre-flight check warns you about uncoded transactions, missing documents, and potential issues before you file. No surprises.