Quick answer
If your New Zealand business can't pay its GST on time, act before the due date. GST is generally due on the 28th of the month after the period ends, with exceptions on 7 May and 15 January. Inland Revenue charges a 1% penalty the day after the due date and 4% more on day seven. A fast cash flow loan can often pay the bill within 24 hours.
Key points
- File your GST return on time even if you can't pay — late filing adds its own penalty.
- Penalties start the day after the due date and jump on day seven.
- A short loan or an IRD instalment arrangement are the two main options.
- Act before the due date — every option is better earlier.
- GST rate
- 15%
- Usual due date
- 28th of the month after the period
- Exceptions
- March period 7 May; November period 15 January
- Late payment penalty
- 1% day after, further 4% on day 7
GST is one of the strangest bills in business: it’s money you collected for Inland Revenue, yet it often isn’t sitting in the bank when it’s due. A strong sales period, a big customer paying late, or a stock purchase can all leave the GST payment short. Here’s how to handle it quickly — ideally before the due date.
When is GST due in New Zealand?
GST is charged at 15%. Inland Revenue says your GST payment is due on the same day as your return — the 28th of the month after the end of your taxable period — with two exceptions:
| Period ends | Payment due |
|---|---|
| 31 March | 7 May |
| 30 November | 15 January |
| Any other month | 28th of the following month |
If you file two-monthly, that’s six GST payments a year; six-monthly filers have two larger ones.
What happens if I pay GST late?
Inland Revenue’s late payment penalties are:
- 1% of the unpaid tax the day after the due date.
- A further 4% on the seventh day after the due date, on whatever remains unpaid, including penalties.
Use-of-money interest also applies to unpaid tax. And unpaid GST can lead to collection action — calls, then bank deduction notices in some cases. IRD says it may give a grace period before charging penalties if it’s your first late payment in two years, but it’s unwise to rely on it.
What should I do in the days before the due date?
- File the return on time anyway. It avoids a separate late filing penalty and shows the real figure.
- Work out exactly how much you can pay. Partial payment reduces the penalty base.
- Choose your route — a short loan, or an IRD instalment arrangement.
- Act before the 28th (or 7 May / 15 January). Penalties start the next day.
Loan or instalment arrangement for GST?
| Short loan | IRD instalment arrangement | |
|---|---|---|
| Pays IRD | In full, now | Over time |
| Penalties | Avoided if paid by the due date | Fewer, if the arrangement is agreed and kept |
| Interest | Loan cost in dollars | Use-of-money interest continues |
| Speed | Often within 24 hours | Depends on IRD’s decision |
| Next GST period | Must still be paid on time | Must still be paid on time, or the arrangement can be cancelled |
For a one-off spike with income on the way, a short cash flow loan is often simplest. For a larger debt across several periods, see IRD tax debt funding.
Due date this week? Apply now and tell us the amount and date — funds can often go straight to IRD.
Why is there no GST money in the bank?
Usually one of these:
- You’re on the invoice basis and customers haven’t paid yet, but GST on those sales is still due.
- The GST went into stock or wages during a busy period.
- A big asset purchase used up cash (though GST on the purchase may be claimable).
- No separate tax account — GST got mixed with everyday cash.
An illustrative example: a Nelson builder files two-monthly. A large job invoiced in August means $38,000 of GST is due on 28 October, but the client’s payment isn’t due until mid-November. A five-week cash flow loan pays IRD on time; the client’s payment repays the loan. Total cost in dollars is less than the penalties and interest would have been — and there’s no IRD debt on record. (Illustrative only.)
How do I stop GST catching me out again?
- Transfer GST out of each customer payment into a separate account.
- Mark every due date — our 2026–27 tax calendar lists them.
- Review your accounting basis with your accountant if invoice-basis GST is a recurring pinch.
- Have a buffer — a line of credit can be ready for tax dates.
How do two-monthly and six-monthly filers feel the pinch differently?
Your filing frequency changes the size and rhythm of the GST bill:
- Monthly filers pay smaller amounts more often. Each payment is easier to fund, but there are twelve dates a year to manage.
- Two-monthly filers — the most common — face six payments of medium size, with the 15 January and 7 May exceptions.
- Six-monthly filers have just two payments a year, but each can be large enough to cause a serious squeeze if the cash wasn’t set aside.
If your bills are regularly hard to meet, it’s worth asking your accountant whether a different filing frequency or accounting basis would smooth the cash, within the rules.
What will a lender want for a GST payment loan?
- The GST return or the amount due from myIR, with the due date.
- Six months of business bank statements.
- Photo ID for the directors.
- Your repayment source — usually customer payments due in the coming weeks.
- Any existing IRD arrears, disclosed upfront.
With these, our aim of funding within 24 hours of your first application is realistic. If the due date is close, apply early in the day and mention it.
Pay GST on time and keep IRD on side
A bill that’s paid on time costs nothing extra. See whether you qualify in about 60 seconds, and if possible, before the due date. There’s no credit check to enquire, your details stay with a single specialist rather than being spread around, and a real person will call to confirm the amount and whether we can pay IRD directly. Please give the exact GST figure and due date on the form so we can work to the deadline.
Frequently asked questions
Should I file my GST return if I can't pay?
Yes. Filing on time avoids a late filing penalty and shows IRD the true position. Not paying and not filing makes things worse on both fronts.
Can I set up a payment plan for GST?
You can apply for an instalment arrangement through myIR. Inland Revenue says regular agreed payments mean fewer penalties, but interest continues, and paying in instalments without an agreed arrangement may still attract full penalties.
How fast can I get money to pay GST?
With bank statements and ID ready, a cash flow loan can often be funded within 24 hours, and smaller amounts the same day. Funds can sometimes be paid straight to IRD.
Why is my GST bill so high this period?
Usually because sales were strong — GST is collected on sales — while the cash from those sales is still owed by customers, or has gone into stock and wages.