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Updated June 2026

GST for Freelancers & Sole Traders in New Zealand

Freelancing under your own name doesn’t change the NZ$60,000 threshold — but it does change how GST interacts with your invoicing and combined income streams.

Last updated: June 2026

Threshold
NZ$60,000
rolling 12 months
Applies to
Individuals & companies equally
no separate freelancer threshold
Standard rate
15%
flat, on most goods and services

Does freelancing change your GST threshold?

No. The NZ$60,000 threshold applies identically whether you’re a sole trader, contractor, or a company. IRD looks at your total taxable turnover, not your business structure. A freelance consultant invoicing NZ$70,000 a year has the same registration obligation as a company with the same turnover.

If you freelance for multiple clients, all your invoiced income across every client is combined for the purpose of the threshold — there is no separate limit per client relationship.

What counts toward your turnover

Your taxable turnover is your gross business income from taxable supplies. If you freelance on the side of full-time employment, your salary doesn’t count toward the threshold — only your self-employed freelance income is assessed. Secondary freelance income (an online course, consulting on the side) is typically combined with your primary freelance income under the same IRD number.

Should you register voluntarily below NZ$60,000?

Many freelancers who invoice mostly GST-registered businesses register voluntarily before hitting the threshold, since the client can claim back the GST you charge — it’s cost-neutral to them, while you gain the ability to claim GST back on your own business expenses. Freelancers who work mainly with individual consumers feel voluntary registration more directly, since it becomes a real 15% price increase unless absorbed.

Frequently asked questions

Do I need to register separately for each client or contract?

No. GST registration is per business, not per client. Your combined turnover across all clients counts toward the NZ$60,000 threshold.

I have a full-time job and freelance on the side — does my salary count?

No. PAYE employment income is not part of your taxable turnover for GST purposes. Only your self-employed freelance income is assessed against the threshold.

Can I claim GST back on equipment bought before I registered?

Often yes, on goods still held and used in the business at registration, subject to normal input tax credit rules. Keep your purchase records.

Does being a sole trader mean simpler GST filing than a company?

Not necessarily — GST filing frequency and requirements are the same regardless of structure. The choice between payments, invoice, or hybrid basis is a separate, distinct decision.

Do I need an IRD number to register for GST?

Yes, you need an IRD number first, then apply for GST registration separately once your income requires or justifies it.

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General guidance only. Freelance and sole trader circumstances vary. Always verify with Inland Revenue (IRD) or consult a qualified accountant before making decisions.

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