Do I Need to Register for GST? (NZ Guide for Tradies) | TradeStart
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Do I need to register for GST?

One of the first questions every new tradie asks. Here's the short answer, the threshold that decides it, and what actually changes once you're registered — for New Zealand.

🇳🇿 New Zealand 🇦🇺 Australia

The short answer

You must register for GST once your turnover passes $60,000 in any 12-month period. Under that, it's your choice.

The $60,000 threshold

In New Zealand, GST registration becomes compulsory when your turnover (your total sales, not your profit) goes over $60,000 in a 12-month period. That applies in two situations:

  • You have already passed $60,000 in the last 12 months, or
  • You expect to pass $60,000 in the next 12 months.

That second one catches a lot of new tradies out — if you land a big contract early and can see you'll clear $60k, you're meant to register then, not wait until you've actually banked it.

What "turnover" means

Turnover is your total business income — the full value of the work you invoice — before any expenses. It's not what you take home. A tradie billing $6,000 a month is already over the threshold on turnover, even though their actual profit is much less.

Registering voluntarily (under $60k)

Even below the threshold, you can choose to register. Whether it's worth it depends on your situation:

Registering helps if…It's less appealing if…
You spend a lot on tools, materials or a vehicle — you can claim the GST back on those purchases.Most of your customers are homeowners (they can't claim GST back, so adding 15% just makes you dearer).
Your customers are mostly other GST-registered businesses (the GST washes through and doesn't cost them).You want to keep admin to a minimum — registration means regular GST returns.

What changes once you're registered

  • You add 15% GST on top of your prices.
  • Your invoices become tax invoices and must show your GST number and the GST charged.
  • You file GST returns (usually every two or six months) and pay the GST you've collected, less the GST on your business purchases.
  • You can claim back the GST on your business expenses.
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How to register

You register through Inland Revenue (IRD), usually online in myIR. You'll need your IRD number and business details, and you'll choose your filing frequency and accounting basis (most small tradies use the payments basis). It's free and fairly quick.

A note on pricing

Once you're registered, quote your rates excluding GST and add 15% on top. If you're still working out your rate, see our guide on how much to charge per hour.

Guide FAQ

Is GST 15% in New Zealand?

Yes — GST is a flat 15%, added on top of your GST-exclusive prices.

What happens if I go over $60k and don't register?

You're required to register, and IRD can backdate your registration and expect the GST you should have collected — so it's better to register on time. If you're close, talk to your accountant.

Do I need an NZBN as well?

An NZBN (New Zealand Business Number) is separate from GST and free to get. It's a unique identifier for your business and handy to put on invoices, but it isn't the same as being GST-registered.

GST sorted, automatically

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This guide is general information for New Zealand businesses, not tax advice. GST rules can change — check current requirements with Inland Revenue (ird.govt.nz) or your accountant.