Do I need to register for GST or VAT? NZ, AU and UK thresholds
The turnover thresholds that trigger GST or VAT registration in New Zealand, Australia and the UK, and what to do before and after you cross them.
Most small businesses don't choose a moment to think about GST or VAT registration — it sneaks up on them. You're busy sending invoices and chasing payments, and one day you realise your turnover for the last 12 months has quietly crossed a line you didn't know you were watching. Knowing roughly where that line is, and what changes once you cross it, means it's a five-minute admin task instead of a scramble.
This covers New Zealand, Australia and the UK, since the three systems are similar in shape (a turnover test, a registration deadline, a return cycle) but different in the numbers. As always, rules and thresholds are set by the relevant tax authority and can change, so treat the figures below as a starting point and check the current numbers — and your own situation — with your accountant.
New Zealand: GST
As a rule of thumb, you're required to register for GST once your turnover looks like it will pass roughly $60,000 in any 12-month period — not just a tax year, but any rolling 12 months. That includes a forward-looking test too: if you can reasonably expect to go over $60,000 in the next 12 months (say, you've just signed a big contract), you're expected to register before you get there, not after.
A few things that trip people up:
- It's turnover, not profit. A business with high revenue and thin margins can cross the threshold while barely making money.
- You can register voluntarily below $60,000. Plenty of small businesses do, mainly to claim back GST on tools, stock or a vehicle — it's a legitimate choice, not just something you're forced into.
- Once registered, every taxable sale needs GST added, and your invoices need to meet the taxable supply information requirements (what used to be called a "tax invoice").
If you're newly registered, our guide on GST on invoices in NZ walks through exactly what has to be on the invoice itself.
Australia: GST
Australia's GST threshold sits at $75,000 in annual turnover for most businesses (a different, lower threshold applies to non-profits, so check that separately if it applies to you). As in New Zealand, it's a rolling test — your current 12 months, plus a forward-looking check if you expect to cross it soon.
Once you're over the threshold, registration isn't optional, and the ATO expects you to register within 21 days of realising you've crossed it or are about to. Below the threshold, voluntary registration is common for the same reason as in NZ — being able to claim GST credits on business purchases.
If you're an ABN holder working out what this means for your invoices specifically, how to invoice in Australia with an ABN covers the GST-registered and non-registered cases side by side.
United Kingdom: VAT
The UK works a little differently because the VAT registration threshold is reviewed and can move, so it's worth confirming the current figure directly with HMRC or your accountant rather than relying on a number you saw a while ago. As a rule of thumb it has sat in the region of £90,000 of taxable turnover in a rolling 12-month period in recent years, with the same forward-looking test as NZ and Australia: if you expect to cross it in the next 30 days alone, you need to register immediately rather than waiting for the 12-month figure to catch up.
Below the threshold, voluntary VAT registration is a genuine option too, and some small UK businesses choose it specifically because larger clients expect to see a VAT number and deal with VAT-registered suppliers as a matter of course.
For the mechanics of what a UK invoice needs once you're registered — and what a simplified invoice can leave out — see what to put on a UK VAT invoice.
What actually changes once you register
Across all three countries, registering for GST or VAT means roughly the same set of changes:
- You add tax to your prices (or absorb it into your existing prices — a decision worth making deliberately, not by accident).
- Your invoices need extra detail — a tax number, a tax breakdown, and usually more detail once the invoice passes a certain value.
- You file returns on a regular cycle — monthly, two-monthly or quarterly depending on the country and sometimes your own choice.
- You can usually claim back tax on business purchases, which is often the upside that makes registering before you're forced to worth considering.
A practical way to stay ahead of it
The easiest way to avoid a surprise is to glance at your trailing 12-month revenue every couple of months rather than waiting for year-end to add it up. If you're getting close to a threshold — in any of the three countries — that's the moment to have a short conversation with your accountant about timing, not after you've already crossed it and need to register retroactively.
Good invoicing software helps here too: if your reports show rolling turnover at a glance, you'll see the threshold approaching naturally, instead of reconstructing the number from a spreadsheet after the fact. InvoiceCharlie's reports give you that running total, and once you do register, switching on GST or VAT in your settings updates every invoice template automatically — correct wording, correct breakdown, no manual editing required.
If registration is on your mind right now, talk to your accountant about your specific numbers and timing — this article is a starting point, not tax advice. Once you know where you stand, your first 10 invoices are free if you want invoicing that's ready for GST or VAT from day one, or try the free invoice generator if you just need a single compliant invoice out the door today.