Registration ceases when (s 52):
- Taxable supplies are less than $60,000. The cancellation is optimal in this situation. Cancellation takes effect from the last day of the taxable period in which the application is processed.
- IRD can cancel a registered person’s registration if it is satisfied that the registered person is not carrying on a taxable activity.
A person who ceases to be registered for GST has the following obligations:
- The person must finish a final GST return covering the period from the beginning of the final taxable period up to the date of deregistration.
- Assets kept after deregistration are deemed to have GST content on them. The GST is calculated on the market value of the asset and returned to the IRD.
- The person must pay off any GST payable.
- All records must be kept for at least seven years (s 75).