Cancelling GST Registration: Must, Might or Cannot
17 October 2026 · Guide · Not tax advice
Educational information only. Not tax, legal or financial advice. We are not Inland Revenue (IRD) or ACC and are not affiliated with them. Check ird.govt.nz, or ask a qualified tax agent. Last checked against official sources: October 17, 2026. Anything marked expected should be re-checked. Examples use made-up numbers.
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Short answer: IRD says you must cancel your GST registration within 21 days if you stop your taxable activity and do not intend to start a new activity within the next 12 months. You might want to cancel if your turnover for the next 12 months is expected to be under NZ$60,000 or you have been filing nil returns for more than 12 months. You cannot cancel if GST is included in your prices, even if your annual turnover is under NZ$60,000. Cancelling GST does not close your business.
What changes if you cancel (IRD)
- You no longer charge GST on your sales.
- You can no longer claim GST on your expenses.
- You may also need to account for GST on business assets you keep for private use or another business: IRD says to use the current open market value and, for assets bought on or after 1 October 1986, to work out the GST as (open market value × 3) ÷ 23, whatever accounting basis you use.
Groups and branches
GST groups have different criteria and processes. A parent body can cancel any separately registered branch or division at any time and takes over its GST responsibilities; if a parent cancels its own registration, the branches' registrations are cancelled automatically.
Before you decide
Check that your turnover forecast is realistic: if you expect to pass the threshold again soon, you would have to re-register (registration and threshold).
Made-up example
A sole trader's sales have been NZ$40,000 a year and are expected to stay there. Their prices do not include GST. IRD's page says they may choose to cancel. If they quote GST-inclusive prices, the page says they cannot.
Related
GST invoices · Tax calendar · Late filing penalties
FAQ
How do I cancel? Cancel in myIR, by sending IRD a message, by calling 0800 377 776, or with the IR315 Business cessation form. IRD says it will confirm within 5 working days unless it needs more information.
Is a final return needed? Yes. IRD says you must file a final GST return covering the period from the start of your last taxable period to the cancellation date, due on the usual date for your filing frequency.
What we could not verify
- The effective date of cancellation (last day of the period or a chosen date) and the legal basis (Goods and Services Tax Act 1985, section 52, not read).
- The IRD page was last updated 10 November 2023; later changes not checked.
- Treatment of the 'GST in prices' rule in edge cases.
Sources (official)
- Inland Revenue, When to cancel your GST registration (last updated 10 Nov 2023) — official page (read in full 17 October 2026)
- Inland Revenue, Cancel your GST registration — official page (read 17 October 2026)
- Inland Revenue, Your final GST return — official page (read 17 October 2026)