GST Registration - How to Apply the Threshold

Question

We have a client who earned $62,000 in 2018 year. We did her accounts late in the following year by which time she realised her turnover would be less in the 2019 year. She earned $52,000 in 2019.

Does she have to register for GST now or only if the coming year will be greater than $60,000?

Answer

Goods & Services Tax Act 1985 Section 51 (1)

Subject to this Act, every person who, on or after 1 October 1986, carries on any taxable activity and is not registered, becomes liable to be registered—

(a) at the end of any month where the total value of supplies made in New Zealand in that month and the 11 months immediately preceding that month in the course of carrying on all taxable activities has exceeded $60,000

It appears your client should have been registered for GST when she exceeded the GST registration threshold.