GST Return Deadlines: Key Dates Every NZ Business Must Know

As a business owner in New Zealand, staying on top of your GST Return deadlines is essential for maintaining compliance and avoiding costly penalties. The Goods and Services Tax (GST) is a tax applied to most goods and services in New Zealand, and businesses must file GST Returns to report the amount of tax collected from sales and the tax paid on business expenses. Failing to meet your GST rReturn deadlines can lead to significant financial consequences, including interest charges and penalties.

In this article, we will walk you through the essential information about GST return deadlines in New Zealand. Whether you’re a small business owner or managing a larger company, understanding these deadlines is crucial for smooth operations and continued growth.

What is a GST Return?

A GST return is a tax document that businesses in New Zealand must submit to the Inland Revenue Department (IRD). This return reports how much GST your business has charged customers and how much GST you have paid on business-related expenses. If your business collects more GST from customers than you pay on expenses, you must pay the difference to the IRD. If your expenses exceed the amount of GST you’ve collected, you can claim a refund.

In New Zealand, businesses are required to file GST returns if they are registered for GST. Most businesses need to file these returns on a regular basis, typically either monthly, bi-monthly, quarterly, or annually, depending on the size and nature of their operations.

Understanding GST Return Deadlines

The deadlines for submitting GST returns depend on the filing period assigned to your business. Your filing frequency is determined based on your turnover and how often you choose to submit your returns. Understanding your GST filing period is vital because it will help you stay organized and avoid missing important deadlines.

In general, there are four main filing periods for GST returns in New Zealand:

1. Monthly Returns Monthly returns are typically required for businesses that have a higher turnover or for those who request to file monthly. These businesses must submit their GST returns by the 28th of the month following the end of the return period. For example, if the return period ends on 31st January, the GST return must be submitted by 28th February.
2. Bi-Monthly Returns Businesses with bi-monthly returns file GST returns every two months. The due date for filing these returns is the 28th of the second month following the end of the return period. For instance, if the return period ends on 31st March, the GST return must be filed by 28th May.
3. Quarterly Returns Quarterly returns are the most common filing frequency for small to medium-sized businesses. The filing deadline for quarterly returns is the 28th of the month following the end of each quarter. For example, if your return period ends on 30th June, your GST return is due by 28th July.

Knowing which filing period applies to your business is the first step in staying on top of your GST return deadlines. Missing any of these deadlines could result in penalties and interest charges, which can accumulate quickly if not addressed .

GST Return Filing Periods and Deadlines

While the four filing periods mentioned above are standard, it is essential to double-check your business’s GST filing frequency with the IRD. Depending on the size of your business, you may be eligible to change your filing frequency. However, you must request a change, and the IRD will assess whether the change is appropriate for your situation.

It’s important to remember that GST returns are due by the 28th of the month, unless this date falls on a weekend or public holiday. In such cases, the due date will usually be extended to the next working day. This is important to keep in mind, especially if your business operates on tight deadlines or if you’re working with multiple returns.

In addition to the standard filing deadlines, the IRD may require your business to submit additional information or documentation as part of your GST return. Be sure to carefully review the requirements and deadlines outlined in any communication from the IRD .

Consequences of Missing GST Return Deadlines

Failing to meet your GST return deadlines can have serious consequences for your business. The IRD imposes penalties and interest charges for late filings, and these can add up quickly if not addressed. Let’s take a closer look at the potential consequences:

1. Late Filing Penalties The IRD imposes penalties for late GST returns. The penalty can be a fixed amount or a percentage of the GST owed. The longer the delay in submitting your return, the more severe the penalty. In some cases, businesses can face substantial fines for failing to meet deadlines consistently.
2. Interest Charges In addition to penalties, the IRD will charge interest on any GST owed after the due date. This interest accrues daily and can make your outstanding balance increase rapidly. It’s important to pay your GST on time to avoid these extra costs.
3. Damage to Your Business’s Reputation Continuously missing deadlines can damage your business’s reputation. The IRD keeps records of businesses that consistently file late or fail to file their returns, and this information can affect your creditworthiness and relationships with other businesses.
4. Cash Flow Issues If you miss a GST return deadline and are subsequently charged penalties and interest, this can create cash flow problems for your business. Unforeseen expenses due to missed deadlines can affect your ability to manage day-to-day operations.

Avoiding these consequences requires proactive planning and strict adherence to deadlines. By staying organized and aware of your filing dates, you can ensure that your business remains in good standing with the IRD.

How to Keep Track of Your GST Return Deadlines

Staying on top of your GST return deadlines can be challenging, especially if you’re juggling multiple business tasks. However, there are several ways to ensure you never miss a filing date:

1. Set Reminders and Alerts One of the simplest ways to keep track of your GST return deadlines is to set reminders on your phone, calendar, or accounting software. Many accounting programs, such as Xero and MYOB, allow you to set automatic reminders for upcoming filing deadlines.
2. Use Accounting Software Many businesses use accounting software to track their financials and tax obligations. These programs can automatically generate your GST return, calculate your liabilities, and remind you of upcoming deadlines. Using such software can simplify the process and prevent you from missing key dates.
3. Work with a Tax Agent or Accountant If keeping track of your GST return deadlines seems overwhelming, consider hiring a tax agent or accountant. These professionals can handle your GST filings, ensure compliance, and keep track of important deadlines. They can also offer advice on how to optimize your tax position.
4. Create a Filing Calendar Maintaining a dedicated filing calendar for your business can help you track your GST return deadlines. Mark the relevant dates for each filing period, and ensure that you leave enough time to prepare the necessary information before the due date.

What to Do if You Miss a GST Return Deadline

If you miss a GST return deadline, the first thing you should do is contact the IRD as soon as possible. It’s important to address the issue immediately to prevent further penalties and interest from accumulating. The IRD may offer payment arrangements or allow you to make adjustments to your filings.

Here’s what you should do if you miss a deadline:

1. Contact the IRD: Reach out to the IRD to explain the situation and inquire about the steps to take.
2. Pay any Penalties or Interest: If applicable, pay any penalties or interest charges as soon as possible.
3. File Your Return: Submit your GST return as quickly as possible to minimize the impact of missing the deadline.
4. Monitor your account to resolve any issues and ensure no further actions are necessary.

Key Takeaways for NZ Businesses on GST Return Deadlines

Understanding your GST Return deadlines is crucial for maintaining compliance and avoiding penalties. By staying organized, setting reminders, and using accounting software, you can ensure that your business never misses a filing date. If you do miss a deadline, take action quickly to minimize penalties and interest charges.

Ultimately, staying on top of GST Return deadlines is an essential part of running a successful business in New Zealand. By prioritizing timely filings, you can avoid unnecessary stress and focus on growing your business.