Plain language law

New Zealand law explained for everyone

Goods and Services Tax Act 1985

Registration

51: Persons making supplies in course of taxable activity to be registered

You could also call this:

"You must register for GST if your business earns over $60,000 in a year from selling goods or services."

If you are doing any taxable activities and you are not registered, you may need to register. You will need to register if the total value of the supplies you make in New Zealand in a month and the 11 months before that is more than $60,000. You also need to register if you think you will make supplies worth more than $60,000 in the next 12 months.

If you need to register, you must apply to the Commissioner within 21 days. You will need to fill out a form and give the Commissioner any extra information they need. The Commissioner will then decide when your registration will start.

You can also register voluntarily if you are doing taxable activities or if you plan to start doing them. In some cases, a non-profit organisation can register a branch or division as a separate person for tax purposes. When determining the value of supplies, you do not need to include any tax that has been charged.

For more information on secondary legislation, you can see Part 3 of the Legislation Act 2019.

If you are a non-resident supplier making supplies of certain goods or services, you can use a fair and reasonable method to convert foreign currency amounts to New Zealand currency amounts, as stated in section 8(3)(ab) and section 8C.

You should also be aware that if you apply for registration, it will be deemed to have been made by you or with your authority, unless you can prove otherwise.

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 It might be out of date or be missing some parts.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=DLM84824.

Topics:
Money and consumer rights > TaxesBusiness > Starting a businessBusiness > Industry rules
Previous

50: Appropriation of refunds, or

"When the government owes you money back, this rule explains how they use that refund."

Next

51B: Persons treated as registered, or

"Some people are treated as registered for tax even if they are not actually registered."

Part 8Registration

51Persons making supplies in course of taxable activity to be registered

  1. Subject to this Act, every person who, on or after 1 October 1986, carries on any taxable activity and is not registered, becomes liable to be registered—

  2. at the end of any month where the total value of supplies made in New Zealand in that month and the 11 months immediately preceding that month in the course of carrying on all taxable activities has exceeded $60,000 (or such larger amount as the Governor-General may, from time to time, by Order in Council declare (see subsection (8))):
    1. at the commencement of any month where there are reasonable grounds for believing that the total value of the supplies to be made in New Zealand in that month and the 11 months immediately following that month will exceed the amount specified in paragraph (a):
        1. provided that any such person shall not become liable where the Commissioner is satisfied that that value will exceed that amount in that period solely as a consequence of—
      1. any ending of, including a premature ending of, or any substantial and permanent reduction in the size or scale of, any taxable activity carried on by that person; or
        1. the replacement of any plant or other capital asset used in any taxable activity carried on by that person; or

            1. For the purposes of determining under subsection (1) the liability of a unit title body corporate to be registered, the value of a supply of a service made by the body corporate to a member is not included in the total value of supplies made in New Zealand by the body corporate.

            2. For the purposes of subsection (1), if the person is a non-resident supplier making a supply of distantly taxable goods to which section 8(3)(ab) applies, or of remote services to which section 8(3)(c) applies, or of listed services referred to in section 8C, then in determining whether the person is liable to be registered, the person may use a fair and reasonable method of converting foreign currency amounts into New Zealand currency amounts.

            3. Every person who, by virtue of subsection (1) or section 51B(4), becomes liable to be registered shall apply to the Commissioner in the prescribed form for registration under this Act, within 21 days of becoming so liable, and provide the Commissioner with such further particulars as the Commissioner may require for the purpose of registering that person.

            4. Notwithstanding subsections (1) and (2), every person who satisfies the Commissioner that, on or after 1 October 1986,—

            5. that person is carrying on any taxable activity; or
              1. that person intends to carry on any taxable activity from a specified date,—
                  1. may apply to the Commissioner in the prescribed form for registration under this Act, and provide the Commissioner with such further particulars as the Commissioner may require for the purpose of registering that person.

                1. Where any person has—

                2. made application for registration pursuant to subsection (2), (3), or section 54B, and the Commissioner is satisfied that that person is eligible to be registered under this Act, that person shall be a registered person for the purposes of this Act with effect from such date as the Commissioner may determine; or
                  1. not made application for registration pursuant to subsection (2), and the Commissioner is satisfied that that person is liable to be registered under this Act, that person shall be a registered person for the purposes of this Act with effect from the date on which that person first became liable to be registered under this Act:

                    1. Notwithstanding anything in this Act, where any taxable activity is carried on by any non-profit body in branches or divisions, that non-profit body may apply to the Commissioner for any such branch or division to be a separate person for the purposes of this section, and if each such branch or division maintains an independent system of accounting and can be separately identified by reference to the nature of the activities carried on or the location of that branch or division, each such branch or division shall be deemed to be a separate person, and not a part of the non-profit body, and, where any such branch or division is a separate person pursuant to this subsection, any taxable activity carried on by that branch or division shall, to that extent, be deemed not to be carried on by the non-profit body first mentioned in this subsection.

                    2. A unit title body corporate that is registered under this Act as a result of an application under subsection (3) made on a date (the application date) on or after the date of introduction of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Bill must be registered with effect from a date after the application date.

                    3. The provisions of this Act relating to the determination of the value of any supply of goods and services shall apply for the purposes of this section, with the modification that no regard shall be had to any tax charged in respect of any such supply.

                    4. An application for registration under this Act purporting to be made by or on behalf of any person shall for all purposes be deemed to have been made by that person or by that person's authority, as the case may be, unless the contrary is proved.

                    5. An order under subsection (1)(a) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                    Notes
                    • Section 51(1)(a): amended, on , by section 27 of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).
                    • Section 51(1)(a): amended, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
                    • Section 51(1)(a): amended (with effect on 3 December 1985), on , by section 26(a) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).
                    • Section 51(1)(b): amended (with effect on 3 December 1985), on , by section 26(b) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).
                    • Section 51(1)(c): amended, on (applying on and after 10 October 2000), by section 109(2) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
                    • Section 51(1)(d): amended, on , by section 160 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
                    • Section 51(1)(e): repealed, on , by section 187 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
                    • Section 51(1B): inserted (with effect on 1 October 1986), on , by section 281(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                    • Section 51(1C): inserted, on , by section 66 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
                    • Section 51(1C): amended, on , by section 147(1) (and see section 147(2) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
                    • Section 51(1C): amended, on , by section 33 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                    • Section 51(2): amended, on , by section 231 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                    • Section 51(4)(a): amended, on , by section 137 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
                    • Section 51(4)(b): amended, on (applying to every person who becomes liable to be registered under this Act on or after 24 March 1988), by section 15(1) of the Goods and Services Tax Amendment Act 1988 (1988 No 7).
                    • Section 51(5): amended, on , by section 191 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                    • Section 51(5B): inserted (with effect on 26 February 2015), on , by section 281(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                    • Section 51(7): added, on , by section 14 of the Goods and Services Tax Amendment Act (No 2) 1989 (1989 No 152).
                    • Section 51(8): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).