Plain language law

New Zealand law explained for everyone

Goods and Services Tax Act 1985

Returns and payment of tax

15: Taxable periods

You could also call this:

"Time frames for paying goods and services tax"

Illustration for Goods and Services Tax Act 1985

When you are registered for goods and services tax, you have a taxable period. This is the time frame you use to pay your tax. You can have a taxable period of 6 months, 2 months, or 1 month.

If you want a 6-month taxable period, you need to apply to the Commissioner. You might get a 6-month period if your taxable supplies are not too high. Your taxable supplies are the goods and services you sell that have tax on them.

You can also have a 1-month taxable period if you apply for it. If your taxable supplies are very high, you will have to have a 1-month period. The Commissioner is the person who decides if you can have a 6-month or 1-month taxable period.

There are some special rules for non-resident suppliers. A non-resident supplier is someone who sells goods or services in New Zealand but does not live here. These suppliers usually have a 3-month taxable period. They can read more about this in section 8(3)(c) and section 8C.

If you are a non-resident supplier of distantly taxable goods, your first taxable period might be different. You can find out more about secondary legislation in Part 3 of the Legislation Act 2019. The Governor-General can change the rules about taxable periods by making an Order in Council.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM83096.

Topics:
Money and consumer rights > Taxes
Previous

14: Exempt supplies, or

"Things you don't pay tax on, like some houses, financial services, and donated goods"

Next

15A: Change in registered person's taxable period, or

"Changing the time period for paying GST"

Part 3Returns and payment of tax

15Taxable periods

  1. A registered person's taxable period must be one of the following:

  2. a 6-month period, if subsection (2) applies:
    1. a 2-month period:
      1. a 1-month period, if subsection (3) or (4) applies.

        1. A person’s taxable period may be a 6-month period if the person applies to the Commissioner to pay on that basis and—

        2. the person’s taxable supplies in a 12-month period are no more, and are not likely to be more, than $500,000:
          1. the person makes 80% or more of the person’s taxable supplies for an income year during a period of 6 months or less that ends with, or less than 1 month before, the end of the income year and has not had a 6-month period as a taxable period under this paragraph in the 24-month period before the application.

            1. A person's taxable period may be a 1-month period if the person applies to the Commissioner to pay on that basis.

            2. A person's taxable period must be a 1-month period if the person's taxable supplies in a 12-month period are more, or are likely to be more, than $24,000,000.

            3. For the purposes of subsections (2) and (4),—

            4. the 12-month period is a period that starts on the first day of a month and ends on the last day of a month or is a period of approximately 12 months consisting of taxable periods approved for the person:
              1. the amount of a person's taxable supplies does not include the amount of taxable supplies arising as part of—
                1. the ending, including a premature ending, of a taxable activity carried on by the person:
                  1. a substantial and permanent reduction in the size or scale of a taxable activity carried on by the person:
                    1. the replacement of plant or a capital asset used in a taxable activity carried on by the person:
                    2. the Governor-General, from time to time, may declare by Order in Council another amount as the limit applying to the value of a person's taxable supplies.

                      1. Despite subsections (1) to (4), the taxable period of a non-resident supplier whose only supplies in New Zealand are supplies of distantly taxable goods, or remote services to which section 8(3)(c) applies, or listed services referred to in section 8C, is a 3-month period, based on a first quarter ending on 31 March.

                      2. Despite subsection (6), a non-resident supplier of distantly taxable goods that becomes a registered person in the period beginning on 1 December 2019 and ending on 31 December 2019 has a first taxable period of 1 December 2019 to 31 March 2020.

                      3. An order under subsection (5)(c) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                      Notes
                      • Section 15: substituted, on , by section 291(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
                      • Section 15(1): amended (with effect on 30 March 2022), on , by section 210(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                      • Section 15(2): replaced, on , by section 354 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                      • Section 15(5)(a): amended (with effect on 30 March 2022), on , by section 210(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                      • Section 15(5)(a): amended, on , by section 13(2) (and see section 13(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                      • Section 15(6): replaced, on , by section 59(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
                      • Section 15(6): amended, on , by section 210(3)(a) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                      • Section 15(6): amended, on , by section 210(3)(b) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                      • Section 15(7): inserted, on , by section 20(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                      • Section 15(8): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).