Filing a GST Return in New Zealand

Sasha Curin
Oct 9
4 min read

If you run a business or trust in New Zealand, you’ll almost certainly come across GST (Goods and Services Tax) at some point. For many new small business owners, GST can feel confusing, when do you need to register, how often do you need to file, and what happens if you get it wrong?

In this guide, we’ll walk you through the essentials of GST returns, explain some of the finer details (like voluntary registration), and highlight common mistakes so you can avoid them.

What is a GST Return?

A GST return is the form you send to Inland Revenue (IRD) that tells them:

How much GST you’ve charged and collected on your business sales (called output tax).
How much GST you’ve paid on your business expenses (called input tax).

The difference between these amounts shows whether you owe money to IRD or are due a refund.

Even if you haven’t traded during the period, you still need to file a return, this is called a nil return. Missing even a nil return can cause compliance issues and penalties, so it’s important to file on time, every time.

GST Registration: Compulsory vs Voluntary

Before you can file GST returns, you need to be registered for GST.

Compulsory registration: If your turnover (total sales) is more than $60,000 in a 12-month period, or if you expect it will go over that threshold in the next 12 months, you must register for GST. This is a legal requirement.
Voluntary registration: You can choose to register even if you’re below the $60,000 threshold. You however must have a viable business to register for GST.

Why would you do this? Voluntary registration can be useful if:

You have high start-up or running costs that include GST, since you can claim the GST back.
Your customers are mainly GST-registered businesses (they won’t mind you charging GST, as they can claim it back).
You want to look more established or professional, some larger organisations prefer to deal with GST-registered suppliers.

On the flip side, voluntary registration adds admin as you’ll need to file GST returns even if you’re under the threshold. It’s worth weighing up carefully before deciding.

GST Registration Basis

There are 2 GST registration bases available in New Zealand: Payments basis and Invoice basis, to help you determine which may be most suitable for your business –

Payments Basis

· GST is accounted for when payments are received or made.

· Suitable for businesses with annual turnover of NZD $2 million or less.

· Provides better cash flow management, as GST is only paid when money is actually received.

· Commonly used by small businesses and sole traders.

Invoice Basis

· GST is accounted for when an invoice is issued or received, regardless of when payment occurs.

· Required for businesses with turnover over NZD $2 million, unless IRD grants an exception.

· May be beneficial for businesses with regular invoicing and predictable cash flow.

How Often Do You File GST Returns?

Your filing frequency (called your “taxable period”) depends on your turnover and sometimes your preference:

Six-monthly – For businesses with turnover under $500,000, or for seasonal businesses where most sales happen in one six-month period. This option keeps admin low, but you need to be disciplined about record-keeping since you’re filing less often.
Two-monthly – The default option for most small businesses. Filing every two months is a good balance: not too much paperwork, but regular enough to keep cash flow manageable.
Monthly – Compulsory for very large businesses with turnover over $24 million. Smaller businesses can choose this if they prefer, often to get quicker refunds when they regularly claim GST on expenses.

Your choice affects both your admin workload and your cash flow, so it’s worth reviewing with us if you’re unsure.

Key Filing Deadlines

Most GST returns are due by the 28th of the month after the taxable period ends. For example, if your GST period ends on 31 July, your return and payment are due by 28 August.

There are two exceptions:

For periods ending 31 March – due by 7 May (to account for the tax year).
For periods ending 30 November – due by 15 January (to account for the holiday period).

IRD is strict about these dates, and extensions aren’t usually available. Missing a deadline can result in penalties, so it’s best to file early rather than wait until the last minute.

How to File Your GST Return

There are a few different ways you can file:

myIR – Inland Revenue’s secure online system, where you can log in and file directly.
Accounting software – Platforms like Xero, MYOB, and others let you file GST returns straight from your accounts. This saves time, reduces data entry, and lowers the risk of errors.
Tax agent or accountant – Many small businesses hand GST over to their accountant to save stress and avoid mistakes. A tax agent can also remind you of deadlines and help with planning.

The Importance of Good Record-Keeping

Filing GST returns accurately depends on having good records. You’re legally required under the Goods and Services Tax Act 1985 to keep invoices, receipts, and other records for at least seven years.

Good record-keeping isn’t just about compliance, it makes GST filing easier and helps you manage your business better. Accounting software can automate much of this, but even then, it’s important to regularly reconcile your accounts and keep documents organised.

Common Mistakes to Avoid

Some of the mistakes we see most often include:

Forgetting to file a nil return.
Claiming GST on personal or non-deductible expenses.
Double-counting invoices or missing receipts.
Leaving filing to the last minute and risking late penalties.

Avoiding these pitfalls can save you both time and money.

Need Help with GST?

GST doesn’t have to be a headache. With the right systems and the right advice it can become a smooth, routine part of running your business.

At DC&A, we work with small to medium sized businesses and Trusts across New Zealand to manage GST returns, stay compliant, and free up time for what really matters: growing your business.