New Zealand bill proposes pre-registration GST deductions, a non-resident registration choice and filing changes

What changed in detail

This is a bill and not law. The Taxation (Annual Rates for 2026-27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Bill proposes several GST changes.

Clauses 146, 157, 159 to 163 and 172 would introduce new rules allowing GST deductions for goods and services acquired before GST registration once they start being used to make taxable supplies. The deduction would be limited by value at first use, with a safe harbour for recent acquisitions, and would replace the adjustment-based approach from 1 April 2027.

The Bill also proposes, effective the day after Royal assent, that non-residents making zero-rated services supplies to non-residents may choose not to register for GST (clause 170), and that the Commissioner may move a registered person from six-monthly filing to a two-month taxable period where the person no longer meets the six-monthly eligibility conditions and has not applied to change in time (clause 153).

What it means

Nothing applies yet, and clauses may be amended before enactment. If enacted, the pre-registration rules would change how start-up costs are recovered, so businesses about to register may want to wait for the final text before deciding on timing. The filing change is a power of the Commissioner, limited to persons who no longer qualify for six-monthly filing and have not applied to change, so six-monthly filers whose turnover has grown should check their eligibility.