GST Deregistration NZ: When Can You Cancel GST Registration?

GST deregistration NZ is the process of cancelling your GST registration with Inland Revenue when your business no longer needs to be registered or your taxable activity has stopped.

You may be able to cancel your GST registration if your taxable turnover is expected to remain below the $60,000 GST registration threshold. If you stop carrying on your taxable activity and do not intend to start a new taxable activity within the next 12 months, you generally must cancel your GST registration.

GST deregistration does not automatically mean that your business or organisation has closed. You may continue operating without GST registration if you meet the requirements for cancellation.

What Is GST Deregistration NZ?

GST deregistration NZ means cancelling your GST registration with Inland Revenue.

Once your GST registration is cancelled:

• You generally stop charging GST on your taxable sales.
• You can no longer claim GST on expenses incurred after deregistration.
• You must file your final GST return.
• You may need to make GST adjustments for business assets you retain.
• You should keep your GST and business records as required.

Importantly, cancelling GST registration does not by itself close your business. A business may continue operating without GST registration where it is no longer required to be registered and the relevant requirements are met.

When Do You Have to Cancel GST Registration?

If you stop carrying on your taxable activity and do not intend to start a new taxable activity within the next 12 months, you must cancel your GST registration.

In this situation, Inland Revenue requires you to notify them within 21 days of stopping the taxable activity.

The date your GST registration ends and the treatment of transactions connected with stopping the business can affect your final GST return, so it is important to establish the correct cessation date.

Can You Voluntarily Cancel GST Registration?

Yes. You may be able to voluntarily cancel your GST registration if you continue your taxable activity but expect your taxable turnover for the next 12 months to be below $60,000.

This can be relevant to businesses whose turnover has fallen below the GST registration threshold or whose expected future turnover has reduced.

However, you cannot simply deregister because your turnover has temporarily fallen below $60,000 if the circumstances mean you are still required to remain registered.

Can I Deregister for GST If My Turnover Is Under $60,000?

Potentially, yes.

If you continue your taxable activity but your taxable turnover for the next 12 months is expected to be under $60,000, you may be able to request cancellation of your GST registration.

However, you need to consider your actual circumstances and expected taxable supplies. Inland Revenue also states that you cannot cancel your GST registration while GST is included in your prices.

Before cancelling, businesses should therefore review their expected turnover, pricing and upcoming transactions rather than relying only on historical turnover.

When Can You Not Cancel GST Registration?

You cannot simply cancel your GST registration if you are still required to be registered.

For example, if you continue your taxable activity and expect your taxable turnover to exceed the registration threshold, cancellation may not be appropriate.

You also need to consider transactions that are planned or are part of winding up your taxable activity. Selling business assets as part of closing a taxable activity can have GST consequences and may need to be considered when determining whether deregistration is appropriate.

How Do I Cancel My GST Registration?

The easiest way to request GST deregistration NZ is through your myIR account.

Step 1: Log in to myIR

Log in to your Inland Revenue myIR account and go to your GST account.

Step 2: Select Your GST Account

Open the relevant GST account and select “More…”.

Step 3: Select “Cancel account registration”

Follow the cancellation instructions and provide the information requested by Inland Revenue.

Step 4: Provide the relevant cancellation information

You may need to provide information about the date your taxable activity stopped or the reason you are no longer required to be registered.

Step 5: Wait for confirmation

Inland Revenue states that it will contact you if it needs more information. Otherwise, it will generally send confirmation that your GST registration has been cancelled within 5 working days.

You can also request cancellation by sending a message through myIR or by contacting Inland Revenue.

What Happens After GST Deregistration?

GST deregistration does not mean your GST responsibilities immediately disappear.

After your registration is cancelled, you need to:

• File your final GST return.
• Account for GST on applicable final transactions.
• Review business assets retained after deregistration.
• Complete any required debit or credit adjustments.
• Pay any GST owing by the relevant due date.
• Keep appropriate business and tax records.

Do I Need to File a Final GST Return?

Yes.

When you cancel your GST registration, you need to file a final GST return.

Your final return covers the taxable activity from the first day of your taxable period through to the date your GST registration is cancelled.

The due date depends on your GST filing frequency, just as it does for your normal GST returns.

For example, if your GST filing frequency is two-monthly, your final return will cover the relevant period through to your cancellation date and will be due according to the applicable GST filing timetable.

Do I Have to Pay GST When I Deregister?

You may.

Deregistration itself does not necessarily create a GST payment, but your final GST return may result in GST owing.

This can happen because of:

• GST on final taxable supplies.
• GST adjustments.
• Business assets retained after deregistration.
• Amounts owed by debtors or owed to creditors where adjustments apply.

You should therefore calculate your final GST position before assuming that deregistration means there will be no further GST to pay.

What Happens to Business Assets When You Deregister for GST?

This is one of the most important parts of GST deregistration NZ.

If you retain assets from your taxable activity after cancelling your GST registration, you may need to account for GST on those assets in your final GST return.

Inland Revenue requires the current open market value of relevant assets to be considered when calculating the applicable adjustment.

This can apply where assets are:

• Kept for private use.
• Transferred to another business.
• Retained after the taxable activity has stopped.

The GST treatment can be different depending on the type of asset, when it was acquired and how it is being used after deregistration.

Can I Claim GST After Deregistration?

Generally, no.

Once your GST registration has been cancelled, you cannot continue claiming GST on ordinary business expenses as a GST-registered person.

Your final GST return can still contain applicable adjustments and transactions relating to the period before cancellation, but expenses incurred after deregistration generally do not create GST input tax claims.

If you are unsure whether an expense belongs in your final GST return, review the transaction with your accountant before filing.

What Happens to Debtors and Creditors When You Deregister?

Outstanding amounts owed to or by the business can need to be considered when preparing the final GST return.

In particular, Inland Revenue’s final GST guidance requires adjustments where relevant debts and debtors remain at deregistration.

This means you should review:

• Outstanding customer invoices.
• Amounts owed to suppliers.
• Bad debts.
• Accrued business expenses.
• Other outstanding GST-related amounts.

Do not assume that cancelling your GST registration removes the GST consequences of transactions that occurred before cancellation.

Can a Sole Trader Cancel GST Registration?

Yes.

A sole trader can cancel GST registration if the requirements for cancellation are met.

This may happen when a sole trader:

• Stops their taxable activity.
• Expects taxable turnover to remain below $60,000.
• Changes the nature or scale of their business.
• Stops making taxable supplies.

The sole trader still needs to complete the required final GST return and any applicable adjustments.

Can I Register for GST Again After Deregistering?

Yes, you may be able to register for GST again.

If your circumstances change after deregistration and you become liable to register for GST again, you will need to review your registration obligations.

For example, if your taxable turnover is expected to exceed the GST registration threshold, you may become required to register again.

Voluntary registration may also be possible where the relevant requirements are met.

Because your previous GST registration and the circumstances of your deregistration can be relevant, it is sensible to review the position before re-registering.

How Long Does GST Deregistration Take?

Inland Revenue states that once you request cancellation, it will contact you if it needs more information. Otherwise, it will generally send confirmation within 5 working days.

The time needed to complete the overall process can depend on whether additional information or clarification is required.

Common GST Deregistration Mistakes

Businesses can make mistakes when cancelling their GST registration, particularly when they focus only on the cancellation request and overlook the final GST return.

1. Cancelling too early

Do not cancel simply because your recent turnover is below $60,000. You need to consider your expected taxable turnover and whether you are still required to be registered.

2. Forgetting the final GST return

Cancellation does not remove the requirement to file your final GST return.

3. Ignoring business assets

Assets retained after deregistration may require GST adjustments.

4. Forgetting outstanding transactions

Review debtors, creditors, final sales, purchases and other outstanding transactions before completing the final return.

5. Continuing to charge GST

Once your GST registration has been cancelled, you should not continue charging GST as though you remain registered.

6. Claiming GST after cancellation

Expenses incurred after deregistration generally cannot be claimed as GST input tax.

7. Treating GST deregistration as business closure

GST cancellation and business closure are separate processes. If you are closing a company or business, there may be additional income tax, employer, Companies Office and record-keeping requirements.

GST Deregistration Checklist NZ

Before cancelling your GST registration, review the following:

• ☐ Have you confirmed why you are deregistering?
• ☐ Have you checked whether your taxable activity has stopped?
• ☐ If continuing, have you reviewed expected taxable turnover for the next 12 months?
• ☐ Have you stopped including GST in prices where appropriate?
• ☐ Have you reviewed your final sales and purchases?
• ☐ Have you reviewed outstanding debtors and creditors?
• ☐ Have you identified business assets you will retain?
• ☐ Have you calculated any required GST adjustments?
• ☐ Have you requested cancellation through myIR?
• ☐ Have you received confirmation of cancellation?
• ☐ Have you filed your final GST return?
• ☐ Have you paid any GST owing?
• ☐ Have you retained your GST records?

GST Deregistration Auckland

If you are a business owner looking for GST deregistration Auckland support, DFK Orb360 O’Halloran can help you review the GST consequences of cancelling your registration.

Our Auckland offices provide accounting and tax support for businesses across Auckland, including GST compliance, tax planning, financial reporting and business advisory services.

Newmarket:
Level 2, 6 Kingdon Street, Newmarket, Auckland
Phone: 09 377 4238

Rosedale:
1D/43 Omega Street, Rosedale, Auckland 0632
Phone: 09 442 5767

GST Deregistration Wellington

If you need GST deregistration Wellington support, DFK Orb360 O’Halloran provides accounting and tax services from our Wellington-region office in Petone, Lower Hutt.

Wellington Region:
48 Richmond Street, Petone, Lower Hutt
Phone: 04 555 0401

Our team can help review your final GST position, business assets, outstanding transactions and GST filing obligations.

View DFK Orb360 Auckland and Wellington locations →

People Also Ask About GST Deregistration NZ

When can I cancel GST registration in NZ?

You can generally cancel if your taxable activity has stopped, or if you continue operating but expect your taxable turnover for the next 12 months to be below $60,000 and you are no longer required to be registered.

How do I cancel my GST registration?

You can request cancellation through your GST account in myIR by selecting “More…” and then “Cancel account registration”. You can also contact Inland Revenue through myIR or by phone.

Can I deregister for GST if my turnover is under $60,000?

Potentially. If your taxable turnover for the next 12 months is expected to be under $60,000, you may be able to cancel your GST registration, provided the other requirements are met.

What happens when I cancel GST registration?

You stop charging GST on taxable sales, generally lose the ability to claim GST on expenses incurred after cancellation, and must complete a final GST return and any required GST adjustments.

Do I need to file a final GST return?

Yes. When your GST registration is cancelled, you need to file a final GST return covering the relevant taxable period through to the cancellation date.

Do I have to pay GST when I deregister?

You may have GST to pay on your final return, depending on your final transactions, adjustments and assets retained after deregistration.

Can I claim GST after deregistration?

Generally, no. Once your GST registration has been cancelled, you cannot claim GST on ordinary expenses incurred after deregistration as a GST-registered person.

What happens to business assets when I deregister for GST?

Certain business assets retained after deregistration may require a GST adjustment based on their open market value. These adjustments should be included in the final GST return where applicable.

Can I register for GST again after deregistering?

Yes, you may be able to register again if you later become liable to register or meet the requirements for voluntary registration.

How long does GST deregistration take?

Inland Revenue states that it will generally confirm cancellation within 5 working days if it does not need additional information.

Can a sole trader cancel GST registration?

Yes. A sole trader can cancel GST registration if the requirements for cancellation are met and must complete the applicable final GST obligations.

Can an accountant help with GST deregistration?

Yes. An accountant can help review whether deregistration is appropriate, calculate final GST adjustments, review business assets and prepare the final GST return.

Where can I get GST deregistration help in Auckland?

DFK Orb360 O’Halloran provides GST and accounting support from its Newmarket and Rosedale Auckland offices. View our Auckland locations.

Where can I get GST deregistration help in Wellington?

DFK Orb360 O’Halloran provides GST and accounting support from its Petone, Lower Hutt office. View our Wellington-region location.

GST Deregistration NZ: Key Takeaway

GST deregistration NZ is more than simply cancelling your GST account in myIR.

Before deregistering, you should confirm that you are eligible to cancel, review your expected turnover or cessation date, consider your business assets and outstanding transactions, and understand the GST consequences of your final return.

If your taxable activity has stopped and you do not intend to start a new taxable activity within the next 12 months, you generally must notify Inland Revenue within 21 days. If you continue trading but expect taxable turnover to remain below $60,000, voluntary cancellation may be available.

Because the final GST return can involve adjustments for assets and other transactions, professional advice can help you avoid errors and unexpected GST liabilities.

Official NZ GST Resources

• Inland Revenue – When to cancel your GST registration
• Inland Revenue – Cancel your GST registration
• Inland Revenue – Your final GST return
• Inland Revenue – File your GST return

Disclaimer: This article provides general information only and does not constitute personalised tax, accounting or legal advice. GST rules and Inland Revenue requirements can change. Businesses should obtain professional advice based on their individual circumstances.