GST Thresholds and Filing in 2025-26: What Small Businesses Need to Know

Goods and Services Tax (GST) is one of the most important tax obligations for New Zealand businesses. Whether you are a new sole trader, a growing small business, or an established company, understanding the registration threshold, filing frequencies, and record-keeping requirements for 2025-26 can save you from penalties and ensure you claim every cent of input tax you are entitled to.

GST at a Glance for 2025-26

Item	Rate / Amount
GST rate	15%
Compulsory registration threshold	$60,000 annual taxable turnover
Voluntary registration	Available to any person making taxable supplies
GST rate changes in 2025-26	None

The GST rate of 15% has been unchanged since 1 October 2010. There were no changes to the GST rate for 2025-26, and no changes are forecast.

The $60,000 Registration Threshold

You must register for GST if your taxable turnover exceeds — or is likely to exceed — $60,000 in any 12-month period. This threshold has not changed for 2025-26.

The $60,000 applies to your turnover, not your profit. If you earn $70,000 in a year but your costs are $50,000, your turnover is still $70,000 and you are required to register.

When Does the 12-Month Period Apply?

IRD looks at the previous 12 months and the next 12 months:

Past 12 months: If your taxable supplies in any rolling 12-month period exceeded $60,000, you should have already registered. If you have not, register immediately and advise IRD of the date you should have registered from.
Next 12 months: If you reasonably expect your turnover to exceed $60,000 in the next 12 months, you must register before you reach that threshold — not after.

Missing the registration deadline is a common compliance error. IRD can assess GST on sales made while you were unregistered but should have been, back-dated to the date you were required to register.

What Counts as Taxable Turnover?

Taxable turnover includes:

Sales of goods or services in New Zealand
Exported goods and services (zero-rated at 0%, but still count toward the threshold)
Rental income from commercial property
Online marketplace income

It does not include:

Exempt supplies (financial services, residential rental income, donated goods sold by non-profits up to certain limits)
Private sales (genuine one-off sales of personal assets)

Voluntary Registration

Even if your turnover is below $60,000, you can voluntarily register for GST if you are making taxable supplies. Voluntary registration may be worthwhile if:

You have significant GST-inclusive business expenses and want to claim the input tax back
Your customers are predominantly GST-registered businesses that can claim back the GST you charge
You expect to exceed the threshold soon and want to establish your GST account early

There is no minimum turnover for voluntary registration, but IRD expects the registration to be for genuine business purposes.

GST Filing Frequencies

Once registered, you file GST returns and pay any GST owed on a regular schedule. There are three filing frequencies:

Two-Monthly (Most Common)

Available to: all GST-registered businesses
Filing periods: February/March, April/May, June/July, August/September, October/November, December/January
Return and payment due: Last day of the month following the period end

Example: The period ending 30 April 2025 has a return and payment due 28 June 2025 (last business day of June — IRD uses 28th as default for this period).

Most small businesses use the two-monthly cycle. Returns are filed online via myIR or through accounting software using GST filing integrations.

Six-Monthly

Available to: businesses with taxable supplies under $500,000 per year (or by IRD approval)
Filing periods: March/September balance dates
Payment due dates: 28 November and 28 May

The six-monthly option reduces compliance effort but means you hold GST collected for longer before paying it to IRD, which can ease cash flow. You must apply to IRD for this frequency.

Monthly

Available to: all businesses; required for businesses with taxable supplies over $24 million per year
Return and payment due: Last day of the following month

Some small businesses choose monthly filing to receive refunds quickly — if you consistently receive GST refunds (for example, an exporter who zero-rates sales but pays GST on inputs), monthly filing means faster cash flow.

Calculating GST

Standard Method

Most businesses use the invoice basis: GST is accounted for when invoices are issued (not when cash is received).

GST on sales: Total sales (GST-inclusive) ÷ 23 × 3 = GST collected

Example: $11,500 in GST-inclusive sales → $11,500 / 23 × 3 = $1,500 GST

GST on purchases (input tax): GST-inclusive purchases ÷ 23 × 3 = input tax to claim

Example: $2,300 in GST-inclusive expenses → $2,300 / 23 × 3 = $300 input tax

Net GST payable: $1,500 − $300 = $1,200 to pay IRD

Payments Basis

If your taxable supplies are $2 million or less, you can apply to use the payments basis: you account for GST only when you receive payment (sales) and when you make payment (purchases). This is simpler for businesses where cash flow timing differs from invoicing, but means you cannot claim input tax until you actually pay the invoice.

GST and Residential Rental Property

Residential rent is exempt from GST. Landlords do not charge GST on residential rent and cannot claim GST input credits on expenses related to their rental properties (such as repairs, maintenance, rates, or insurance). This is an important distinction from commercial property, which is subject to GST.

If you own a mixed-use property (partly commercial, partly residential), you must apportion your input tax credits between the taxable (commercial) and exempt (residential) portions.

Zero-Rated Supplies

Some supplies are charged at 0% GST rather than 15%. These count toward the registration threshold but do not generate GST to remit. Common zero-rated supplies include:

Exports of goods and services
Sales of going concerns (businesses sold as a whole)
Sales of land between GST-registered parties (in most circumstances)
Financial services provided to non-residents in certain circumstances

Zero-rating matters for exports in particular: you can still claim input tax credits on expenses incurred producing zero-rated exports, even though no GST is charged on the sale. This is what makes GST a “value-added” tax rather than a cascading turnover tax.

Record-Keeping Requirements

You must keep records that support your GST returns for seven years. IRD can audit your GST returns within that period. Required records include:

Tax invoices for all taxable supplies over $50
Records of all GST-inclusive sales (including cash sales)
Bank statements and bank reconciliations
Logbooks for motor vehicles where business use is claimed

A tax invoice must include:

The words “tax invoice”
Supplier’s name and GST number
Date
Description of the goods or services
GST-inclusive amount
GST amount (or a statement that GST is included)

For supplies under $1,000, a simplified invoice is acceptable.

Penalties for Late Filing and Payment

Penalty	Amount
Late filing	$250 per return
Late payment — day after due	1% of unpaid amount
Late payment — 7 days overdue	Further 4% of amount still unpaid
Monthly incremental penalty	1% per month on outstanding amounts

Use-of-money interest also accrues on unpaid GST at 10.96% per annum.

Summary

For 2025-26, the key GST facts are:

The rate remains 15% — no changes
Register if your annual taxable turnover reaches or is likely to reach $60,000
Most small businesses file every two months with returns due the last day of the following month
Residential rental income is exempt from GST — no GST charged, no input credits claimed
Keep tax invoices and records for seven years

If you are approaching the $60,000 threshold, registering proactively is simpler than being back-assessed. Use the GST Calculator on this site to estimate your GST position, and consult a tax adviser if your supplies include a mix of taxable and exempt activities.