GST Accounting Software NZ 2025: Complete IRD Compliance Guide
GST-compliant accounting software automates tax tracking, prevents errors, and files returns directly to IRD. This guide covers everything you need to know about choosing GST accounting software for your New Zealand business.
💡 Quick Answer
Best GST accounting software for NZ businesses: Xero ($25-$95/month) - Used by 75% of NZ accountants, one-click GST filing to IRD, automatic GST tracking on all transactions. MYOB ($35-$110/month) is a solid alternative with similar features.
Why You Need GST Accounting Software
✓ With GST Software
- • Automatic GST tracking: Every transaction tagged correctly
- • One-click filing: Submit GST101 directly to IRD
- • Error prevention: Calculations done automatically
- • Audit trail: Complete record of all GST transactions
- • Time saving: 2-3 hours per GST return vs. manual
- • Bank feeds: Transactions imported automatically
✗ Without GST Software
- • Manual calculations: High error risk
- • Spreadsheet tracking: Time-consuming, error-prone
- • Manual data entry: Typing every transaction into myIR
- • Missing receipts: No central system for expenses
- • Accountant fees: Higher costs for manual reconciliation
- • IRD penalties: Late or incorrect filing
💡 Reality Check: Most NZ businesses save 10-20 hours per year on GST compliance with accounting software. At your hourly rate, the software pays for itself even at $70/month. Plus it reduces costly GST calculation errors.
Top GST Accounting Software for NZ
1. Xero 🏆
Best Overall for NZ GST Compliance
$25-$95/mo
3 plans
New Zealand's most popular accounting software with excellent GST handling. Founded in Wellington, Xero understands NZ tax requirements better than international competitors.
✓ GST Features
- • Automatic GST calculation on every transaction
- • One-click filing to IRD (myIR integration)
- • Supports invoice & payments basis
- • Monthly or two-monthly filing periods
- • GST on imports/exports handled correctly
- • Ratio method for mixed supplies
- • Automatic payment due date reminders
Pricing
- • Starter: $25/month (20 invoices)
- • Standard: $70/month (unlimited)
- • Premium: $95/month (multi-currency)
- • All plans include GST features
- • Free 30-day trial
Best for: 95% of GST-registered NZ businesses. Particularly good for service businesses, professional services, trades, and retail.
2. MYOB
Best for Inventory Businesses
$35-$110/mo
4 plans
Established accounting software with robust GST features. Particularly strong if you need inventory tracking alongside GST compliance.
✓ GST Features
- • Complete GST tracking & reporting
- • Direct IRD filing integration
- • GST on inventory purchases tracked
- • Supports all NZ GST scenarios
- • Built-in payroll with PAYE/GST
Pricing
- • Starter: $35/month
- • Business: $70/month
- • Advanced: $110/month
- • Free 30-day trial
Best for: Retail with inventory, manufacturing, construction with job costing, businesses needing advanced stock control with GST tracking.
3. QuickBooks Online
Best for International Businesses
$35-$100/mo
4 plans
Intuit's cloud accounting with NZ GST compliance. Good choice if you have US parent company or need multi-currency with GST tracking.
Best for: NZ subsidiaries of international companies, businesses with significant overseas trade requiring GST and multi-currency handling.
Essential GST Features to Look For
1. Automatic GST Calculation
Software should automatically add GST to sales (15%) and track GST on expenses. Every transaction must have correct GST code (GST on Income, GST on Expenses, Zero-rated, Exempt). Look for NZ-default codes pre-configured.
2. Direct IRD Integration
Must file GST returns (GST101) directly to Inland Revenue's myIR system. One-click submission with automatic population of return fields. Software should track filing status and payment due dates.
3. Multiple GST Methods
Invoice Basis (Accrual): GST reported when invoice issued
Payments Basis (Cash): GST reported when payment received
Software must support your chosen method and switch if you change.
4. GST Reporting
Generate GST reconciliation reports, GST detailed reports (all transactions), GST exceptions report (items missing GST codes), and historical GST returns for past periods.
5. Special GST Scenarios
Zero-rated exports: Track exports correctly (0% GST)
Reverse charge imports: Handle imported services
Mixed supplies: Ratio method for mixed GST/non-GST income
Bad debts: Claim GST back on unpaid invoices (payments basis)
Common GST Mistakes Software Prevents
❌ Common Errors
- • Forgetting to add GST to some invoices
- • Using wrong GST code (exempt vs zero-rated)
- • Missing expense receipts (lost GST claims)
- • Calculation errors in manual GST returns
- • Late filing penalties (forgetting due dates)
- • Mixing invoice/payments basis incorrectly
✓ How Software Helps
- • Automatically adds 15% GST to all sales
- • Suggests correct GST codes by transaction type
- • Bank feeds capture all expenses automatically
- • Calculations always accurate (no math errors)
- • Email reminders before GST due dates
- • Enforces consistent basis (invoice or payments)
💰 Cost of Errors: IRD penalties for late GST filing: 1% of GST owed immediately, then 4% after 7 days, plus 1% monthly. A $5,000 GST return filed 2 weeks late = $250 penalty. Software reminders prevent this.
How to File GST Returns with Accounting Software
Step-by-Step GST Filing Process
- 1. Reconcile bank accounts for the GST period (ensure all transactions imported and categorized)
- 2. Run GST exceptions report to find transactions missing GST codes—fix any errors
- 3. Review GST return in software (check GST on income and expenses look correct)
- 4. File to IRD with one click (software submits directly to myIR)
- 5. Pay GST owed by due date (online banking to IRD account, or direct debit)
- 6. Record payment in accounting software (closes the GST loop)
✓ Pro Tip: File your GST return 2-3 days before the deadline, not on the day. Gives you time to fix any last-minute issues and avoid late penalties.
✓ Pro Tip: Set up GST payment as automatic direct debit from your bank account. IRD debits the exact amount on due date—no risk of late payment.
FAQs
What is the best accounting software for GST in NZ?
Xero is the best GST accounting software for most NZ businesses. It offers automatic GST tracking on all transactions, one-click GST returns filed directly to IRD, supports both invoice (accrual) and payment (cash) basis, handles monthly or two-monthly filing periods, and is used by 75%+ of NZ accountants. Pricing starts at $25/month. MYOB is a good alternative with similar GST features, while QuickBooks Online also handles NZ GST requirements well.
Can I file GST returns directly from accounting software in NZ?
Yes, Xero, MYOB, and QuickBooks all integrate directly with Inland Revenue's myIR system for digital GST filing. The software automatically calculates your GST from transactions, generates the GST return (GST101 form), and submits it electronically to IRD. You can review the return before filing, and the software tracks your payment due dates. This eliminates manual data entry and reduces errors compared to filing through myIR manually.
Do I need special accounting software to be GST registered in NZ?
No, you don't technically need accounting software to be GST registered—you can track GST manually and file through myIR. However, accounting software makes GST compliance much easier and more accurate. It automatically tracks GST on income and expenses, prevents calculation errors, integrates with bank feeds for automatic categorization, generates IRD-compliant reports, and files directly to IRD. Most accountants strongly recommend using Xero or MYOB if you're GST registered.
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