Whatever your business size and structure, there are good reasons to register for GST.
If you expect your annual turnover to exceed $60k from supplying goods and services, GST registration is a must. This $60k excludes non-core (e.g. interest or domestic rent) income.
If you expect to turn over less than $60k, you might still register voluntarily for GST. Because if you spend money (e.g. on plant or equipment) you can claim the 15% GST and put it back in your business
Another reason to register is if your clients are councils or corporates. Many won’t deal with non-GST-registered suppliers as it’s too much bother for their accounts people.
GST registration even denotes size and credibility. Some clients fear dealing with ‘little fish’ who turn over less than $60k.
These are general comments. As every person’s situation differs, it’s wise to seek independent advice before acting.
Follow this series at www.tclaccountants.co.nz/gregs-blog