Nil Filings and GST Registration
This year, IRD sent out letters to people who were registered for GST but filed nil returns for over 4 years advising them that they would be deregistered for GST. The reason for this, according to IRD, is that you must be carrying out taxable activity which is defined as “continuous or regular activity undertaken by any person that supplies or intends to supply goods or services for money or other reward.”
Cancelling GST registration has implications for retained assets, if there are any, and may require the GST claimed upon purchase of assets to be repaid. Rural Accountants will be monitoring nil-filings and, if they continue for multiple years, we will schedule time with you to review your options. It’s important to review the situation in advance of IRD taking action, as it will allow ample time for your assets and obligations to be managed.
IRD will not cancel your registration without warning: if you didn’t receive notice, don’t panic! But if you do have an entity that is consistently filing nil GST returns, feel free to reach out to us today to discuss the future of your GST registration status.