What is the GST registration threshold for tradies in NZ?
Short answer
You must register for GST once your annual turnover exceeds $60,000 (or you reasonably expect to in the next 12 months). You can register voluntarily below that threshold — useful if you buy a lot of GST-inclusive supplies. GST is currently 15%. Once registered, you file returns (usually 2-monthly), charge 15% on top of your services, and claim back GST on business purchases.
Source: Inland Revenue — ird.govt.nz/gst. Updated May 2026.
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Check a builderKey facts
- Threshold: $60,000 annual turnover
- Current GST rate: 15%
- Returns usually 2-monthly (can be 1- or 6-monthly)
- Voluntary registration available below threshold
- Some supplies are zero-rated (e.g., exports) — most tradie work isn't
When to register
Mandatory: turnover exceeds $60k in the last 12 months, or you reasonably expect it to in the next 12. Most full-time tradies hit this.
Voluntary: useful if you buy significant inputs (tools, materials) and want to claim the GST back. The trade-off: you have to charge 15% to your customers, which on residential work usually has to be absorbed by you (not added on top) because most homeowners are GST-naive.
How it works in practice
On every invoice: your price + 15% GST = total charged. The 15% you collect is held in trust for IRD — you forward it at the end of each GST period.
On every business purchase: claim the GST included in the price back. Net effect: you pay GST on your margin, not your total turnover.
Common mistake: spending the GST you've collected before the return is due. Discipline: a separate bank account for GST + provisional tax. Treat it like the IRD's money, because it is.
Knowing the rules is half the job. The other half is knowing who you're hiring. Check any NZ builder against the public record: company status, licensing and insolvency notices, from the official NZ sources.
Sources: Inland Revenue — ird.govt.nz/gst; Goods and Services Tax Act 1985. General information for NZ homeowners, not legal advice. Building rules change and vary by council, so confirm critical details on the official source before acting. Last updated 2026-05.