Do I need to register for GST?

If you're starting out on your own, GST is one of the first things to get your head around. The short answer: you have to register once your turnover reaches $60,000 in a 12-month period. Below that, it's your choice.

The $60,000 test

Inland Revenue says you must register for GST if you're carrying out a taxable activity (running a business, basically) and either:

• your turnover was $60,000 or more in the last 12 months, or
• you expect it to be $60,000 or more in the next 12 months.

Turnover means total sales, not profit. A business that sells $65,000 of work in a year and makes $15,000 profit is over the line.

The test looks backwards and forwards. If you've just signed a contract that will take you past $60,000 in the next year, you need to register now. You don't wait until you've earned it.

Should I register if I'm under $60,000?

You can. People usually weigh it up like this:

• Going for it: you can claim back the GST on business costs such as equipment, software and materials. If most of your customers are GST-registered businesses, adding 15% doesn't cost them anything, because they claim it back.
• Against: you have to add 15% to your prices, which matters if you sell to the public. You also have to file GST returns.

What changes once you're registered

• You add 15% GST to what you charge (or include it in your prices), and show your GST number on tax invoices.
• You claim back the GST you've paid on business costs.
• You file a GST return and pay the difference. Most small businesses file every two months; if your turnover is under $500,000 you can choose to file every six months.

Common questions

Sources: Inland Revenue, Registering for GST and Changing your GST filing frequency. Checked October 2026. General information, not tax advice.