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Do I need to add GST to my invoices?
Confused about GST registration? Here’s when you need to register, when you don’t, and what it actually means for your prices.
Do I Need to Charge GST? A Plain-English Guide for NZ Small Businesses
Businesses don’t automatically need to register for GST. You only have to register when:
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Your sales are over $60,000 per year, or
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You expect your sales to exceed $60,000 in the next 12 months, or
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You’re already adding GST to your prices
If you’re not yet hitting $60k, you don’t need to register — but you can do so voluntarily if you want to.
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When does voluntary registration make sense?
It can be worth registering early if you’re buying significant business assets and want to claim the GST back on those costs. Outside of that, voluntary registration usually isn’t worth it for most small businesses, because it means adding 15% to your prices.
B2C vs B2B
If you’re selling to individual consumers (B2C), they can’t claim GST back, so adding it makes your prices 15% more expensive for them. If you’re selling to other businesses (B2B), they’re likely GST registered themselves and can claim the credit — so it makes little difference to them either way.