Non-resident businesses providing taxable supplies in New Zealand must register for goods and services tax (GST) if they pass the registration threshold of NZD 60,000 per annum. This threshold applies to the business’s earnings over the preceding calendar year, and also applies to businesses that expect to exceed the threshold within the following 12 months.

Businesses may also voluntarily GST register below the threshold. This enables them to recover any input GST. Non-residents may also register to recover import GST even if they are making no taxable supplies. 

Group GST registrations are not permitted for non-resident businesses.

Businesses can register online via the Inland Revenue website. They will need their business industry classification (BIC) code, and know which taxable period applies to them and which accounting basis they want.

The following information is required when applying for a New Zealand GST registration:

• An IRD number — a unique New Zealand tax reference number which is provided under a separate application process to the Inland Revenue

• An IRD account (‘myIRD’)

• A completed IR360 application form

• A business industry classification code for the taxable supplies

• Bank account details for the refund of any GST credits

   

Once GST registered, businesses can manage and pay GST online using myGST — a section of the New Zealand Inland Revenue’s online service. They must charge GST to their customers and pay anything that is owed to the New Zealand Inland Revenue, as well as file GST returns at a frequency determined by their sales figures.  

Businesses collect GST from their customers, and pay GST to their suppliers when buying goods and services relating to their business operations. If businesses have collected more GST than they paid — which is determined when filing returns — they must pay the balance to the New Zealand Inland Revenue. If businesses have paid more GST than they’ve collected, they can get a GST refund from the New Zealand Inland Revenue.   

Businesses must deregister within 21 days of ceasing to provide taxable supplies. They can also apply for a deregistration if they can show they have fallen permanently under the annual registration threshold.

If a business realises that, based on the previously stated registration requirements, it would not have been mandatory for it to register, it may cancel its registration.

Once GST registered, businesses will receive a unique GST number, to be added to all tax invoices. The format is fixed to 9 characters, all being numbers.

Once a business has received its GST number, it’s able to start charging tax on its invoices. It’s also obliged to comply with the New Zealand GST compliance rules and file regular returns.