1. Increased Focus on GST Compliance

Inland Revenue continues to strengthen its compliance and debt recovery activities. Businesses are being encouraged to maintain accurate records, file returns on time, and ensure GST payments are made by the due date.

What this means for you:

• Review your GST filing processes.
• Ensure invoices meet GST requirements.
• Reconcile GST accounts regularly.
• Address overdue GST obligations promptly.

2. GST on Business Assets

A significant change affecting many businesses takes effect from 1 April 2025.

If GST was claimed when purchasing an asset that is used partly for business purposes, GST may now need to be accounted for when that asset is sold. This applies to many common business assets including vehicles, equipment, and certain property-related assets.

What this means for you:

• Review assets intended for sale.
• Check whether GST was originally claimed.
• Seek professional advice before disposing of high-value assets.

3. Online Marketplace GST Rules Continue to Evolve

Businesses operating through online marketplaces, accommodation platforms, ride-sharing services, and delivery apps should stay informed about GST obligations.

Marketplace operators now have increased reporting responsibilities and stricter record-keeping requirements. Some accommodation providers may also need to review whether they qualify for opt-out provisions.

What this means for you:

• Ensure platform transactions are correctly recorded.
• Confirm GST treatment of marketplace income.
• Maintain accurate supplier and customer records.

4. Review Your GST Registration Status

The GST registration threshold remains NZ$60,000 of taxable turnover within a 12-month period. Businesses approaching this threshold should monitor revenue carefully to avoid late registration penalties.

What this means for you:

• Track annual revenue regularly.
• Register promptly when required.
• Review whether deregistration may be appropriate if business activity changes.

5. Technology and Record Keeping Matter More Than Ever

With Inland Revenue increasingly relying on digital reporting and data matching, businesses should ensure their accounting software is up to date and GST coding is accurate.

Best practices:

• Use cloud accounting software.
• Automate GST calculations where possible.
• Perform monthly reconciliations.
• Retain supporting documentation for all GST claims.

Common GST Mistakes to Avoid

• Claiming GST without a valid tax invoice.
• Missing filing deadlines.
• Incorrect GST coding.
• Failing to account for GST on asset sales.
• Not monitoring the GST registration threshold.
• Poor record keeping.