Excitons and biexcitons in GaN/AlN quantum dots ͑QD͒ were investigated with special emphasis on the use of these QDs for single-photon source applications. The theoretical methodology for the calculation of singleparticle states was based on 8-band strain-dependent envelope function Hamiltonian, with the effects of spinorbit interaction, crystal-field splitting, and piezoelectric and spontaneous polarizations taken into account. Exciton and biexciton states were found using the configuration-interaction method. Optimal QD heights for their use in single-photon emitters were determined for various diameter to height ratios. The competition between strong confinement in GaN QDs and internal electric field, generally reported in wurtzite GaN, was also discussed, as well as its effect on appearance of bound biexcitons.