The Companies Office and Inland Revenue have made it really easy for new businesses to register for GST and incorporate a company at the same time. It’s a quick and easy option, but it may not suit everyone. Here’s why.
Many businesses incorporate before they’ve sorted out their branding, logistics and stock – and before they make any sales. If a business registers for GST at the same time, but isn’t yet making sales, it has to start filing nil returns to Inland Revenue immediately. One in 10 businesses filed more than one nil return from July 2013 to March 2014, for example.
So, until money is going into the business account, in terms of overall compliance it might actually be worth delaying your GST registration.
Inland Revenue wants to make sure new businesses consider what will be the best and most convenient course of action for them. If you’d like to find out more about the options before you decide when to register for GST, contact IR.
Remember, registering for GST is only mandatory if you expect your turnover for the next 12 months to be more than $60,000.
If you decide to wait, it’s still easy to register for GST online at www.ird.govt.nz (external link)