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Illustrative example

Registering for GST after crossing the threshold

A trader realises turnover passed the registration limit some months ago.

Scenario type: Wholesale trader. This is a hypothetical example, not a real client.

The situation

A trader reviews the books at year end and sees that turnover crossed the registration limit several months earlier. Sales were invoiced without tax.

The challenges

  • Customers were charged no tax during the period
  • The exact date of crossing the limit is unclear
  • Registration and back filing need to happen quickly

How it is typically handled

  1. 1Work out the date the limit was crossed from sales records
  2. 2Apply for registration and start issuing tax invoices
  3. 3Assess the liability for the intervening period and how to address it
  4. 4Set up monthly return filing and record keeping

What a good outcome looks like

The trader is registered, invoices correctly, and has a clear picture of the earlier period instead of an unknown exposure.

Key takeaways

  • Monitor turnover against the limit through the year
  • Some supplies require registration regardless of turnover
  • Start correct invoicing the day you register

This scenario is general information for illustration. Rules, thresholds and deadlines change and depend on your facts, so confirm the position for your own situation with a qualified professional.

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