Your accounting basis is shown on your GST registration in myIR. It matters because reports of payments received give correct figures on the payments basis and incomplete figures on the invoice basis.

GST filing frequency, and which basis you file on

Q: What GST filing frequency should I choose?

Two-monthly is the default and suits most small businesses. Six-monthly means less paperwork but you hold the GST longer. Monthly is worth choosing if you are usually in a refund position, as refunds arrive more often.

Q: Can I change my GST filing frequency?

Yes. You can change GST filing frequency in myIR, subject to turnover limits: six-monthly requires turnover under $500,000 and monthly is compulsory above $24 million. Changes take effect from the start of a taxable period.

Q: What is the difference between the payments basis and the invoice basis?

On the payments basis, GST is counted when money is actually received or paid. On the invoice basis it is counted when the invoice is issued, whether or not it has been paid, so you can owe GST on unpaid invoices. The payments basis is available under $2 million of turnover.

Q: Do I have to file a GST return if I had no sales?

Yes. While you are GST registered you must file a return for every taxable period even if you had no sales. A nil return still attracts a late filing penalty if it is not filed.

Last updated 10 September 2026

Once you're registered for GST, two choices shape the rest of your year: how often you file, and which basis you file on. Both are set with IRD, both can be changed, and the second one catches people out because it quietly decides which numbers are the right numbers.

Looking for the dates rather than the rules? GST due dates for 2026 and 2027 lists every return and payment date by filing frequency.

How often you file

Six-monthly — available under $500,000 of turnover. Least paperwork, but you're sitting on six months of someone else's GST, which takes discipline. Two returns a year also means two large payments rather than six modest ones.
Two-monthly — the common default, and what IRD assigns if you don't choose. Six returns a year, amounts small enough to stay in proportion to your bank balance.
Monthly — compulsory above $24 million of turnover, and worth choosing voluntarily if you're regularly in a refund position, since the refund arrives six times more often.

More often means smaller, more predictable amounts and more admin. Less often means fewer returns and a bigger bill each time. If the GST money is sitting in a separate account either way, the choice is mostly about how much paperwork you want; if it isn't, file more often — the discipline is imposed for you.

You can change frequency in myIR within those turnover limits. The change takes effect from the start of a taxable period, not the day you ask.

Payments, invoice, or hybrid

This decides when a sale counts, and it changes what you owe in any given period.

Payments basis. GST counts when the money actually moves. Available under $2 million of turnover, and the sensible choice for most small businesses — you never owe GST on an invoice your customer hasn't paid.
Invoice basis. GST counts when the invoice is issued, paid or not. Required above $2 million. It means you can owe GST on money you haven't received, which is survivable when your customers pay reliably and painful when they don't.
Hybrid. Income on the invoice basis, expenses on the payments basis. Uncommon for small businesses and rarely worth the extra complication.

A worked example of why the basis matters

Say you finish a $11,500 job (GST inclusive) on 25 July, invoice it the same day on 30-day terms, and the customer pays on 3 September. Your two-monthly period ends 31 July.

On the payments basis, nothing about that job appears in the July return. The $1,500 of GST falls into the next period, by which time you have the money.
On the invoice basis, the $1,500 is due with the July return — payable 28 August, six days before the customer pays you. You fund IRD out of your own account and get it back in September.

One job, one set of facts, two different cash positions. Multiply it by a busy month and the invoice basis is why a profitable business can still be short in August.

Why your basis matters for any software you use

Most small-business tools, this one included, report what has been paid. If you file on the payments basis those figures are the ones you want. If you file on the invoice basis they are the wrong numbers — you'd be leaving out invoices you've issued and not yet been paid for, understating the return, and correcting it later.

It's worth knowing which one you're on before you copy any total into a return. If you don't know, it's on your GST registration, and your accountant will know instantly.

Keep the sales side and the expenses side apart

A GST return has both. Software that tracks your invoicing gives you the sales half; the purchases half comes from your expense records — receipts for materials, fuel, tools, subcontractors. Neither half is the return on its own, and the most common cause of an overstated GST bill is a business that tracked its sales carefully and its purchases not at all.

Common questions

What GST filing frequency should I choose?

Two-monthly suits most small businesses and is the default. Six-monthly means less paperwork but you hold the money longer, which takes discipline. Monthly is worth choosing voluntarily if you are usually claiming a refund, because you get it six times more often.

Can I change my GST filing frequency?

Yes, through myIR, subject to the turnover limits — six-monthly is only available under $500,000 of turnover, and monthly becomes compulsory above $24 million. The change takes effect from the start of a taxable period rather than immediately.

What is the difference between the payments basis and the invoice basis?

The payments basis counts GST when money actually moves. The invoice basis counts it when the invoice is issued, paid or not — so you can owe IRD GST on an invoice your customer has not paid yet. The payments basis is available under $2 million of turnover and is kinder to cash flow.

Which basis am I on?

It is on your GST registration in myIR, and your accountant will know instantly. It matters before you copy any figure into a return, because software that reports what has been paid gives the right numbers for one basis and the wrong ones for the other.

Do I have to file a GST return if I had no sales?

Yes. A nil return still has to be filed while you are registered, and it takes a couple of minutes. Skipping it attracts the same late filing penalty as skipping a return with money in it.

The sales half, worked out for you

PayMint shows your next two GST due dates on the dashboard, counted down, using the filing frequency you set. Reports gives you total received and the GST portion for any period or whole tax year, with a CSV for your accountant — and tells you plainly if your figures are on a different basis from the one you file on. 1% per paid invoice (plus Stripe's card fee), no monthly cost.

Try PayMint free

Related guides

General information, not tax advice — for your specific situation, talk to an accountant or check ird.govt.nz.