Comprehensive Guide to GST Registration in New Zealand

In New Zealand, there is a tax on the consumption of goods and services called the Goods and Services Tax (GST). Businesses having an annual turnover of NZD 60,000 or more are required to register for GST, which is levied at a rate of 15% on the majority of products and services.

This article will provide a comprehensive guide to GST registration in New Zealand, covering the registration process, requirements, fees, and benefits.

GST Registration Section

The Goods and Services Tax Act 1985 outlines the GST registration process. This act dictates all of the rules for registering, including a threshold that you must meet before applying and what information needs to be included. All these regulations are implemented to ensure businesses get through this procedure without hassle or disruption.

GST Registration Process

Before registering for GST, a taxable person must already have an IRD number. If not, the taxable person can apply for an IRD number anytime. Then, further, they can register for GST. IRD number and GST registration can be undertaken by submitting a hard copy form or registering online.

Online registration is instant. However, paper registration may take a few weeks. Either the taxable person or the taxable person’s tax agent may submit the Registration. On www.ird.govt.nz, you may complete the online registration.

The registration procedure has been streamlined for newly formed companies that simply supply distant services or inexpensive commodities. The registration form may be submitted online, via email, or by mailing it to the IRD.

GST Registration Form or Application
The GST registration form can be submitted online or by hard copy. You can register online immediately on the spot, whereas registering manually can take several weeks.
GST Registration Requirements
Anyone or any company that is registered for GST in New Zealand or is eligible to file for registration of GST is referred to as a “taxable person.” If taxable supplies reach the NZD60,000 annual threshold for GST registration, a person may register.

The registration process covers the following cases:
1. Retroactively to the current month’s taxable turnover and the previous 11 months.
2. Current month’s potentially taxable turnover and the anticipated turnover over the next 11 months.

According to New Zealand’s GST law, Exemption from Registration is not permitted. A small firm, nevertheless, can voluntarily seek to become a taxable person if it has an annual taxable turnover of less than NZD60,000.
GST Registration Fees
There is no GST Registration cost in New Zealand. However, if a taxable person uses a tax agent to register for GST, the tax agent may charge a fee for their services.
GST Registration Limit
The bar for GST registration in New Zealand is NZD60,000 per annum. A person can register if the taxable supplies exceed the threshold for GST registration.
GST Registration Backdated
GST registration cannot be backdated in New Zealand. A taxable person must register for GST from the date they become eligible to register.
GST Registration for Company
A company can register for GST in New Zealand if it meets the GST registration requirements. The process of registration is precisely the same for any taxable person.
GST Registration Sole trader
If a sole trader in New Zealand meets the GST registration requirements, they can go through the same process as any other taxable person to get registered for GST. It’s a straightforward procedure!

Calculate the annual GST tax for your business.

GST Registration Documentation Details

Generally, they will require the following GST Registration documentation for an IRD number and GST registration:

General business information, e.g., country of residence, registered name, address, business industry classification (BIC) code, certificate of incorporation or taxable person identification number, business start date, etc.
Full name and address of all directors and shareholders (if less than five) and supporting documentation (i.e., passport page showing photo ID and name and proof of residential address) for at least one director.
A fully functional New Zealand bank account number and supporting documentation (not required for a non-established business).
The business’ turnover in the last 12 months or expected turnover in the next 12 months.

GST Registration Status

Once registered for GST, a taxable person will be issued a GST registration number and certificate. You must have the GST registration number on all your receipts and invoices to prove your identity. The GST registration certificate is proof of Registration for GST purposes.

GST Registration Check

Taxable people can check their GST registration status by logging into their myIR account on the IRD website. The GST registration status will show whether the taxable person is registered for GST, the registration date, and the GST registration number.

GST Registration Tracking

Taxable people can track their GST registration status by logging into their myIR account on the IRD website.

GST Registration Approval Time

Online GST registration is done instantly, whereas Registration by way of a hard copy form can take several weeks.

GST Registration Benefits

There are several benefits of registering for GST in New Zealand, including:

Claiming back GST paid on business expenses: Once registered for GST, a taxable person can claim back the GST paid on business expenses, such as rent, utilities, and office supplies.
Increased credibility: GST registration can increase the credibility of a business, as it shows that the business is registered with the government and is complying with tax laws.
Access to government grants and loans: GST registration is often a requirement for businesses to access government grants and loans.

FAQ

GST registration is registering for Goods and Services Tax (GST) in New Zealand. Businesses with an annual turnover of NZD 60,000 or more must register for GST.

Businesses with a NZD 60,000 or higher yearly revenue must register for GST. If taxable supplies reach the NZD 60,000 annual threshold for GST registration, a person may register.

Yes, you can! Registration manually can take several weeks. It can be submitted either by the taxable person or by a tax agent of the taxable person.

It can be denied if the taxable person fails to fulfill the requirements for GST registration or if they provide incorrect/incomplete information in their application.

If that’s the case, they will receive an explanation of why and get a chance to make corrections before submitting again.

The GST registration of a taxable person can be canceled unless they cease to make any taxable supplies or adhere to the applicable GST laws and regulations.

Final Verdict

GST registration in New Zealand is necessary if your business has an annual turnover of NZD 60,000 or more. Fortunately, filing electronically is an option! These filings should occur monthly or bimonthly for optimal compliance and convenience. However, failure to abide by laws and regulations may cancel this Registration!

GST Registration in New Zealand

GST Registration Section

GST Registration Process

GST Registration Documentation Details