Goods and Services Tax Act 1985

1: Short Title, etc
1: This Act may be cited as the Goods and Services Tax Act 1985.
2: This Act, other than section 12 Tax Administration Act 1994
3: Section 12 Customs and Excise Act 2018 Section 1(2) substituted 1 April 1995 Income Tax Act 1994 Section 1(2) amended 27 March 1998 section 51 Taxation (Remedial Provisions) Act 1998 Section 1(3) substituted 1 October 1996 section 289(1) Customs and Excise Act 1996 Section 1(3) amended 1 October 2018 section 443(3) Customs and Excise Act 2018
1: Interpretation
2: Interpretation
1: In this Act, other than in section 12 adjustment period sections 8(4B)﻿(b) 9(2)﻿(h) 20(3C) to (3J) and (3JC) 21 to 21H section 21G(2) apply section 14C ask section 14B associated supply
a: a supply for which the supplier and recipient are associated persons:
b: a supply of a right, under an equity security or participatory security, to receive for no consideration, or consideration at other than the open market value, a supply of goods and services that is—
i: not an exempt supply; and
ii: not a supply relating to the control of the issuer of the equity security or participatory security balance date section 15B challenge
a: to commence proceedings under Part 8A section 3(1)
b: the proceedings,— as the context requires; and any variant of the word challenge commercial dwelling
a: means—
i: a hotel, motel, homestay, farmstay, bed and breakfast establishment, inn, hostel, or boardinghouse:
ii: a serviced apartment managed or operated by a third party for which services in addition to the supply of accommodation are provided and in relation to which a resident does not have quiet enjoyment, as that term is used in section 38
iii: a convalescent home, nursing home, rest home, or hospice:
iv: a camping ground:
v: premises of a similar kind to those referred to in subparagraphs (i) to (iv); and
b: excludes—
i: a hospital except to the extent to which the hospital is a residential establishment:
ii: a dwelling referred to in paragraph (b)﻿(iii) of the definition of dwelling Commissioner Tax Administration Act 1994 common property Unit Titles Act 2010 company elsewhere, and any limited partnership registered under the Limited Partnerships Act 2008 consideration ; but does not include any payment made by any person consideration in money content credit note section 25(3)﻿(a) cryptoasset
a: a database that is secured cryptographically and contains ledgers, recording transactions and contracts involving digital representations of value, that are maintained in decentralised form and shared across different locations and persons; or
b: another application of the same technology performing an equivalent function cryptocurrency dealer in fine metal debit note section 25(3)﻿(b) document Tax Administration Act 1994 domestic goods and services
a: cleaning and maintenance:
b: electricity, gas, air-conditioning, or heating:
c: telephone, television, radio, or any other similar chattel donated goods and services due date section 19C(1) 23(1) dwelling
a: means premises, as defined in section 2
i: that the person occupies, or that it can reasonably be foreseen that the person will occupy, as their principal place of residence; and
ii: in relation to which the person has quiet enjoyment, as that term is used in section 38
b: includes—
i: accommodation provided to a person who is occupying the same premises, or part of the same premises, as the supplier of the accommodation and who meets the requirements of paragraph (a)﻿(i):
ii: any appurtenances belonging to or used with the premises:
iii: despite paragraph (a)﻿(ii), a residential unit in a retirement village or rest home when the consideration paid or payable for the supply of accommodation in the unit is for the right to occupy the unit; and
c: excludes a commercial dwelling electronic marketplace
a: means a marketplace that is operated by electronic means through which a person (the underlying supplier) makes a supply of goods, or of remote services by electronic means,
b: includes a website, internet portal, gateway, store, distribution platform, or other similar marketplace; and
c: does not include a marketplace that solely processes payments emissions unit section 4(1) entry value threshold estimated customs value section 10B exempt supply section 14 fine metal
a: gold, in any form, being gold of a fineness of not less than 99.5%:
b: silver, in any form, being silver of a fineness of not less than 99.9%:
c: platinum, in any form, being platinum of a fineness of not less than 99.0%:
d: any other substance that the Governor-General may, from time to time, by Order in Council, declare to be fine metal for the purposes of this definition ( see going concern
a: there is a supply of a taxable activity, or of a part of a taxable activity where that part is capable of separate operation; and
b: all of the goods and services that are necessary for the continued operation of that taxable activity or that part of a taxable activity are supplied to the recipient; and
c: the supplier carries on, or is to carry on, that taxable activity or that part of a taxable activity up to the time of its transfer to the recipient goods , money, cryptocurrency, or GST group section 55 hire hire purchase agreement section YA 1 hospital
a: means an institution—
i: that is a hospital care institution within the meaning of section 58(4)
ii: whose principal purpose is to receive and treat people needing medical treatment or suffering from a disease; and
b: includes all clinics, dispensaries, offices, outpatient departments, services, and undertakings, maintained in connection with, or incidental to, such an institution income year section YA 1 inform section 14B insurance contract of insurance provided that nothing in this definition shall apply to any insurance specified in section 3 invoice issuing member section 55 55B taxable supply information or supply correction information land the zero-rating of land rules
a: includes—
i: an estate or interest in land:
ii: a right that gives rise to an interest in land:
iii: an option to acquire land or an estate or interest in land:
iv: a share in the share capital of a flat or office owning company to which subpart 6
b: does not include—
i: a mortgage:
ii: a lease of a dwelling:
iii: late payment penalty section 3(1) licence to occupy local authority
a: means a local authority within the meaning of the Local Government Act 2002
b: includes—
i: the administering body within the meaning of the Reserves Act 1977
ii: an airport authority (other than an airport company) within the meaning of the Airport Authorities Act 1966
iii: the Aotea Centre Board of Management established by the Auckland Aotea Centre Empowering Act 1985
iv: the Canterbury Museum Trust Board continued in existence by section 5(1)
v: the Council of the Auckland Institute and Museum constituted under the Charitable Trusts Act 1957
vi: the Otago Museum Trust Board continued in existence by section 5(1)
vii: Auckland Transport (as established by section 38
viii: Auckland Regional Holdings established by section 18 2004:
ix: the Auckland Council Independent Maori Statutory Board established by section 81 loyalty programme marketplace
a: an electronic marketplace:
b: a marketplace approved under section 60D distantly taxable goods or remote services member member supply mobile roaming services
a: means mobile telecommunications services supplied to the mobile device of a person who is outside the country of their usual mobile network as determined by the country code of the subscriber identity module for the person’s mobile device; and
b: includes services supplied to enable a person to receive mobile telecommunications services when the person is outside the country of their usual mobile network determined as described in paragraph (a); and
c: are services that are classified as—
i: inbound mobile roaming services when the services are received by a person who is in New Zealand and whose usual mobile network determined as described in paragraph (a) is outside New Zealand; or
ii: outbound mobile roaming services when the services are received by a person whose usual mobile network determined as described in paragraph (a) is in New Zealand money
a: bank notes and other currency, being any negotiable instruments used or circulated, or intended for use or circulation, as currency; and
b: postal notes and money orders; and
c: promissory notes and bills of exchange,— whether of New Zealand or any other country, but does not include a collector's piece, investment article, or item of numismatic interest name
a: the name (if any) specified by the registered person as a trading name in the person's application for registration under this Act; or
b: any trading name subsequently notified to the Commissioner under section 53(2) new fine metal New Zealand section YA 1 non-fungible token non-profit body
a: which is carried on other than for the purposes of profit or gain to any proprietor, member, or shareholder; and
b: which is, by the terms of its constitution non-resident non-taxable use notice section 14C 14D notify
a: means to give notice; and
b: for a mode of communication, has the meaning set out in section 14C 14D Office of Parliament
a: the Parliamentary Commissioner for the Environment:
b:
c: the Ombudsmen:
d: the Controller and Auditor-General officer of the department Tax Administration Act 1994 output tax section 8(1) partnership partner Partnership Law Act 2019 percentage actual use section 21G(1)﻿(a) sections 8(4B)﻿(b) 9(2)﻿(h) 20(3JC) 20G 21 to 21H percentage difference section 21G(1)﻿(c) sections 20G 21 percentage intended use section 21G(1)﻿(b) sections 8(4B)﻿(b) 20(3H) 20(3JC) 20G 21 to 21H person Pharmac section 46 Pharmac agreement section 6 pharmaceutical section 6 previous actual use section 21C(b)﻿(i) principal place of residence dwelling prize competition
a: for which direct or indirect consideration is paid to a person for conducting the scheme or competition; and
b: that distributes prizes of money or in which participants seek to win money; and
c: for which the result is determined—
i: by the performance of the participant of an activity of a kind that may be performed more readily by a participant possessing or exercising some knowledge or skill; or
ii: partly by chance and partly by the performance of an activity as described in subparagraph (i), whether or not it may also be performed successfully by chance: provisional tax section YA 1 public authority Crown entities, State enterprises and includes offices of Parliament, the Parliamentary Service, the Office of the Clerk of the House of Representatives, public purpose Crown-controlled companies, and the New Zealand Lottery Grants Board public purpose Crown-controlled company section YA 1 quarter section YA 1 Railways assets and liabilities, Railways assets Railways liabilities section EZ 68 Railways vesting section EZ 68 recipient recipient details
a: the name of the recipient; and
b: one or more of the following items of information that are relevant to the recipient:
i: an address of a physical location for the person such as a mailing or billing address:
ii: a telephone number:
iii: an email address:
iv: a trading name other than the name of the recipient:
v: a New Zealand business number:
vi: a Uniform Resource Locator address for a web site redeliverer
a: provides the use of an address outside New Zealand to which the goods are delivered:
b: arranges or assists the use of an address outside New Zealand to which the goods are delivered:
c: purchases the goods outside New Zealand as an agent of the recipient:
d: arranges or assists the purchase of the goods outside New Zealand refiner of fine metal regional fuel tax section 65A registered person registration number remote services
a: the place where the service is physically performed; and
b: the location of the recipient of the services request section 14B resident sections YD 1 YD 2 provided that, notwithstanding anything in those sections
a: a person shall be deemed to be resident in New Zealand to the extent that that person carries on, in New Zealand, any taxable activity or any other activity, while having any fixed or permanent place in New Zealand relating to that taxable activity or other activity:
b: a person who is an unincorporated body is deemed to be resident in New Zealand if the body has its centre of administrative management in New Zealand:
c: the effect of the rules in section YD 1(4) and (6)
i: starting on the day immediately following the relevant day that triggers residence under section YD 1(3)
ii: ending on the day immediately following the relevant day that triggers non-residence under section YD 1(5) residential establishment return Part 3 return of income section 33 revenue from the Crown any amount brought to charge from the Crown Public Finance Act 1989
a: any goods and services tax, chargeable in accordance with the provisions of this Act, on the supply of outputs by that public authority:
b: any revenue collected by that public authority as agent on behalf of the Crown secondhand goods
a: secondhand goods consisting of any fine metal; or
b: secondhand goods which are—
i: manufactured or made from, or to the extent to which they are manufactured or made from, gold, silver, platinum, or other substance, that would be fine metal if it were of the required fineness; and
ii: of a kind not manufactured for sale to the public; or
c: livestock service occupancy agreement services shortfall penalty section 3(1) supplier
a: for a supply to which paragraph (b) does not apply, the person who makes the supply; or
b: for a supply that is subject to a provision in Part 9 supplier group section 55B taxable supply information or supply correction information supply correction information section 19E supply information
a: the name and registration number of the supplier; and
b: the date of the invoice or, where no invoice is issued, the time of supply; and
c: a description of the goods or services; and
d: the amount of the consideration for the supply tax tax file number section YA 1 tax fraction a ÷ (100 + a) where— a is the rate of tax specified in section 8(1) tax invoice sections 24 24BA tax law section 3(1) tax payable section 19C section 20
a: any amount referred to in section 17(2) section 51B
b: any late payment penalty or shortfall penalty:
c: any amount of tax refundable by the Commissioner pursuant to section 19C section 20 ; and, for the purposes of section 57 Part 7 tax year section YA 1 taxable period sections 15 to 15E taxable supply section 8 section 11 11A , 11AB 11B taxable supply information section 19E taxable use Taxation Review Authority Authority Taxation Review Authorities Act 1994 telecommunications services telecommunications supplier trustee Public Trust unconditional gift ; but does not include any payment made by the Crown or a public authority underlying supplier section 60C 60D unincorporated body unit title body corporate Unit Titles Act 2010 Retirement Villages Act 2003 warranty working day
a: a Saturday, a Sunday, Waitangi Day, Good Friday, Easter Monday, Anzac Day, the Sovereign’s birthday, Te Rā Aro ki a Matariki/Matariki Observance Day, and Labour Day; and
ab: if Waitangi Day or Anzac Day falls on a Saturday or a Sunday, the following Monday; and
b: a day in the period commencing with 25 December in any year and ending with 15 January in the following year zero-rating of land rules sections 5(24) 11(1)﻿(mb) 60B(6) 75(3B) 78F
2: For the purposes of this Act, a reference to goods and services includes a reference to goods or services.
3: An order under the definition of fine metal see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 2(1) amended 1 October 2000 section 82(2) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 2(1) additional tax repealed 26 July 1996 section 2(1) Goods and Services Tax Amendment Act 1996 Section 2(1) adjustment period inserted 1 April 2011 section 4(2) Taxation (GST and Remedial Matters) Act 2010 Section 2(1) adjustment period amended 1 October 2016 section 52(2) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 2(1) apply inserted 2 June 2016 section 182 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 2(1) ask inserted 2 June 2016 section 182 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 2(1) associated persons repealed 10 October 2000 section 82(3) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 2(1) associated supply inserted 3 April 2006 section 283(2) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 2(1) balance date substituted 1 October 2007 section 283(4) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 2(1) challenge inserted 1 October 1996 section 2(2) Goods and Services Tax Amendment Act 1996 Section 2(1) commercial dwelling substituted 1 April 2011 section 4(3) Taxation (GST and Remedial Matters) Act 2010 Section 2(1) commercial dwelling replaced 30 June 2014 section 185(1) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 2(1) Commissioner amended 1 April 1995 Income Tax Act 1994 Section 2(1) common property inserted 24 February 2016 section 273(1) Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 Section 2(1) company amended 1 April 2008 section 30 Taxation (Limited Partnerships) Act 2008 Section 2(1) consideration amended 1 October 1988 Goods and Services Tax Amendment Act (No 3) 1988 Section 2(1) consideration amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 2(1) content inserted 1 July 2003 section 152(2) Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 Section 2(1) credit note inserted 13 March 1992 Goods and Services Tax Amendment Act 1992 Section 2(1) cryptoasset inserted 30 March 2022 section 5(2)﻿(a) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 2(1) cryptocurrency inserted 30 March 2022 section 5(2)﻿(b) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 2(1) dealer in fine metal inserted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 2(1) debit note inserted 13 March 1992 Goods and Services Tax Amendment Act 1992 Section 2(1) District Commissioner repealed 2 September 1996 section 51(1) Taxation (Remedial Provisions) Act 1996 Section 2(1) document substituted 29 August 2011 section 235(1)﻿(a) Taxation (Tax Administration and Remedial Matters) Act 2011 Section 2(1) due date substituted 10 October 2000 section 82(4) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 2(1) dwelling substituted 1 April 2011 section 4(4) Taxation (GST and Remedial Matters) Act 2010 Section 2(1) dwelling amended 30 June 2014 section 185(2) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 2(1) dwelling inserted 30 June 2014 section 185(2) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 2(1) electronic marketplace inserted 1 October 2016 section 52(3) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 2(1) electronic marketplace amended 1 December 2019 section 5(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 2(1) emissions unit substituted 6 October 2009 section 704(2) Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 Section 2(1) entry value threshold inserted 1 December 2019 section 5(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 2(1) estimated customs value inserted 1 December 2019 section 5(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 2(1) fine metal inserted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 2(1) fine metal amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 2(1) going concern inserted 10 April 1995 Goods and Services Tax Amendment Act 1995 Section 2(1) goods amended 30 March 2022 section 5(3) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 2(1) goods amended 1 October 2016 section 52(4) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 2(1) goods amended 1 January 2005 section 140(2) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 2(1) GST group inserted 30 March 2022 section 5(1)﻿(a) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 2(1) hire purchase agreement inserted 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003 Section 2(1) hire purchase agreement amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 2(1) hospital substituted 1 October 2002 section 58(1) Health and Disability Services (Safety) Act 2001 Section 2(1) income year inserted 1 October 2007 section 283(5) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 2(1) income year amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 2(1) inform inserted 2 June 2016 section 182 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 2(1) input tax repealed 10 October 2000 section 82(3) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 2(1) issuing member inserted 30 March 2022 section 5(1)﻿(b) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 2(1) issuing member amended 1 April 2023 section 5(4)﻿(a) section 5(5) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 2(1) land inserted 1 April 2011 section 4(5) Taxation (GST and Remedial Matters) Act 2010 Section 2(1) land amended 2 November 2012 section 207(2)﻿(a) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 2(1) land amended 12 November 2018 section 250 Land Transfer Act 2017 Section 2(1) land repealed 2 November 2012 section 207(2)﻿(b) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 2(1) late payment penalty inserted 26 July 1996 section 2(3) Goods and Services Tax Amendment Act 1996 Section 2(1) licence to occupy inserted 1 August 1990 section 2(2) Goods and Services Tax Amendment Act 1990 Section 2(1) local authority substituted 1 July 2003 section 262 Local Government Act 2002 Section 2(1) local authority substituted 1 November 2010 section 113(1) Local Government (Auckland Transitional Provisions) Act 2010 Section 2(1) local authority added 1 July 2004 section 47 Local Government (Auckland) Amendment Act 2004 Section 2(1) local authority amended 2 November 2012 section 207(3) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 2(1) local authority inserted 2 November 2012 section 207(3) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 2(1) loyalty programme inserted 6 October 2009 section 704(3) Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 Section 2(1) marketplace inserted 1 October 2016 section 52(5) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 2(1) marketplace amended 1 December 2019 section 5(3) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 2(1) member inserted 10 October 2000 section 82(5) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 2(1) member supply inserted 30 March 2022 section 5(1)﻿(c) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 2(1) mobile roaming services inserted 1 April 2022 section 182 Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 2(1) name inserted 13 March 1992 Goods and Services Tax Amendment Act 1992 Section 2(1) new fine metal inserted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 2(1) New Zealand amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 2(1) New Zealand unit repealed 6 October 2009 section 704(4) Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 Section 2(1) non-fungible token inserted 30 March 2022 section 5(2)﻿(c) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 2(1) non-profit body amended 14 September 1994 section 2(b) Goods and Services Tax Amendment Act 1994 Section 2(1) non-resident inserted 25 November 2003 section 140(3) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 2(1) non-taxable use inserted 30 March 2017 section 345(2) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 2(1) notice inserted 2 June 2016 section 182 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 2(1) notify inserted 2 June 2016 section 182 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 2(1) Office of Parliament inserted 1 July 1991 Goods and Services Tax Amendment Act 1991 Section 2(1) Office of Parliament repealed 1 July 1993 section 129(1) Privacy Act 1993 Section 2(1) officer of the department inserted 2 September 1996 section 51(2) Taxation (Remedial Provisions) Act 1996 Section 2(1) partnership partner inserted 10 October 2000 section 82(6) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 2(1) partnership partner amended 21 April 2020 section 86 Partnership Law Act 2019 Section 2(1) penal tax repealed 26 July 1996 section 2(4) Goods and Services Tax Amendment Act 1996 Section 2(1) percentage actual use inserted 1 April 2011 section 4(6) Taxation (GST and Remedial Matters) Act 2010 Section 2(1) percentage actual use amended 1 October 2016 section 52(6) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 2(1) percentage difference inserted 1 April 2011 section 4(6) Taxation (GST and Remedial Matters) Act 2010 Section 2(1) percentage difference amended 1 October 2016 section 52(7) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 2(1) percentage intended use inserted 1 April 2011 section 4(6) Taxation (GST and Remedial Matters) Act 2010 Section 2(1) percentage intended use amended 1 October 2016 section 52(8) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 2(1) Pharmac replaced 30 March 2022 section 5(1)﻿(d) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 2(1) Pharmac agreement replaced 30 March 2022 section 5(1)﻿(e) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 2(1) pharmaceutical replaced 30 March 2022 section 5(1)﻿(f) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 2(1) previous actual use inserted 1 April 2011 section 4(6) Taxation (GST and Remedial Matters) Act 2010 Section 2(1) principal place of residence inserted 1 April 2011 section 4(7) Taxation (GST and Remedial Matters) Act 2010 Section 2(1) principal place of residence amended 29 August 2011 section 235(1)﻿(c) Taxation (Tax Administration and Remedial Matters) Act 2011 Section 2(1) prize competition inserted 17 July 2013 section 120(1) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 2(1) provisional tax inserted 1 October 2007 section 283(6) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 2(1) provisional tax amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 2(1) public authority amended 18 March 2019 section 295(2) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 2(1) public authority amended 6 October 2009 section 704(5) Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 Section 2(1) public authority amended 10 April 1995 Goods and Services Tax Amendment Act 1995 Section 2(1) public purpose Crown-controlled company inserted 18 March 2019 section 295(3) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 2(1) quarter inserted 1 December 2019 section 5(4) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 2(1) Railways assets and liabilities, Railways assets Railways liabilities inserted 17 July 2013 section 120(2) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 2(1) Railways vesting inserted 17 July 2013 section 120(3) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 2(1) recipient details inserted 1 April 2023 section 5(4)﻿(b) section 5(5) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 2(1) redeliverer inserted 1 December 2019 section 5(5) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 2(1) refiner of fine metal inserted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 2(1) regional fuel tax inserted 27 June 2018 section 7(2) Land Transport Management (Regional Fuel Tax) Amendment Act 2018 Section 2(1) remote services inserted 1 October 2016 section 52(9) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 2(1) request inserted 2 June 2016 section 182 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 2(1) resident amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 2(1) resident substituted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 2(1) resident amended 21 December 2004 section 144(1) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 Section 2(1) resident substituted 10 October 2000 section 82(7) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 2(1) resident inserted 30 June 2014 section 185(3) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 2(1) residential establishment inserted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 2(1) return of income inserted 1 October 2007 section 283(7) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 2(1) revenue from the Crown substituted 19 December 1989 Goods and Services Tax Amendment Act (No 2) 1989 Section 2(1) revenue from the Crown amended 10 April 1995 Goods and Services Tax Amendment Act 1995 Section 2(1) secondhand goods substituted 24 March 1988 Goods and Services Tax Amendment Act 1988 Section 2(1) secondhand goods replaced 30 March 2017 section 345(3) section 345(5) and (6) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 2(1) secondhand goods added 22 March 1989 Goods and Services Tax Amendment Act 1989 Section 2(1) service occupancy agreement inserted 19 December 1989 Goods and Services Tax Amendment Act (No 2) 1989 Section 2(1) services replaced 30 March 2022 section 5(2)﻿(d) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 2(1) shortfall penalty inserted 26 July 1996 section 2(5) Goods and Services Tax Amendment Act 1996 Section 2(1) supplier replaced 30 March 2022 section 5(1)﻿(g) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 2(1) supplier group inserted 30 March 2022 section 5(1)﻿(h) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 2(1) supplier group amended 1 April 2023 section 5(4)﻿(d) section 5(5) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 2(1) supply correction information inserted 1 April 2023 section 5(4)﻿(c) section 5(5) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 2(1) supply information inserted 1 April 2023 section 5(4)﻿(e) section 5(5) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 2(1) tax file number inserted 23 September 1997 section 109 Taxation (Remedial Provisions) Act 1997 Section 2(1) tax file number amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 2(1) tax invoice amended 19 December 2007 section 271(2) Taxation (Business Taxation and Remedial Matters) Act 2007 Section 2(1) tax law inserted 1 July 2023 section 121(8) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 2(1) tax payable amended 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 2(1) tax payable amended 21 December 2004 section 144(2) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 Section 2(1) tax payable substituted 26 July 1996 section 2(6) Goods and Services Tax Amendment Act 1996 Section 2(1) tax payable added 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 2(1) tax payable amended 26 July 1996 section 2(7) Goods and Services Tax Amendment Act 1996 Section 2(1) tax payable amended 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 2(1) tax year inserted 1 October 2007 section 283(8) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 2(1) tax year amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 2(1) taxable period amended 1 October 2007 section 283(9) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 2(1) taxable supply substituted 10 October 2000 section 82(8) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 2(1) taxable supply amended 1 July 2003 section 152(3) Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 Section 2(1) taxable supply information inserted 1 April 2023 section 5(4)﻿(f) section 5(5) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 2(1) taxable use inserted 30 March 2017 section 345(4) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 2(1) Taxation Review Authority amended 1 April 1995 Income Tax Act 1994 Section 2(1) telecommunications services inserted 1 July 2003 section 152(4) Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 Section 2(1) telecommunications supplier inserted 1 July 2003 section 152(4) Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 Section 2(1) trustee amended 1 July 2009 section 30(2)﻿(a) Māori Trustee Amendment Act 2009 Section 2(1) trustee amended 1 March 2002 section 170(1) Public Trust Act 2001 Section 2(1) unconditional gift inserted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 2(1) unconditional gift amended 22 June 1987 Goods and Services Tax Amendment Act 1987 Section 2(1) underlying supplier inserted 1 December 2019 section 5(6) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 2(1) unincorporated body inserted 10 October 2000 section 82(9) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 2(1) unit title body corporate inserted 24 February 2016 section 273(2) Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 Section 2(1) unit title body corporate replaced 24 February 2016 section 273(3) Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 Section 2(1) warranty inserted 17 October 2002 section 96(1) Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 Section 2(1) working day replaced 12 April 2022 wehenga 7 Te Ture mō te Hararei Tūmatanui o te Kāhui o Matariki 2022 section 7 Te Kāhui o Matariki Public Holiday Act 2022 Section 2(1) working day inserted 1 January 2014 section 8 Holidays (Full Recognition of Waitangi Day and ANZAC Day) Amendment Act 2013 Section 2(1) zero-rating of land rules inserted 2 November 2012 section 207(4) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 2(3) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
2A: Meaning of associated persons
1: In this Act, associated persons
a: two companies if a group of persons—
i: has voting interests in each of those companies of 50% or more when added together; or
ii: has market value interests in each of those companies of 50% or more when added together and a market value circumstance exists in respect of either company; or
iii: has control of each of those companies by any other means whatsoever:
b: a company and a person other than a company if the person has—
i: a voting interest in the company of 25% or more; or
ii: a market value interest in the company of 25% or more and a market value circumstance exists in respect of the company:
bb: a person, or a branch or division of the person that is treated as a separate person under section 56B
c: two persons who are—
i: connected by blood relationship:
ii: connected by marriage, civil union or de facto relationship:
iii: connected by adoption:
iv:
cb: a trustee of a trust and another person ( person A
i: person A is associated with another person (the relative
ii: the relative is associated with the trustee under paragraph (f):
d: a partnership and a partner in the partnership:
db: a joint venture and a member of the joint venture:
e:
f: a trustee of a trust and a person who has benefited or is eligible to benefit under the trust, except if, in relation to a supply of goods and services,—
i: the trustee is a charitable or non-profit body with wholly or principally charitable, benevolent, philanthropic, or cultural purposes and the supply is made in carrying out these purposes; or
ii: the person is a charitable or non-profit body with wholly or principally charitable, benevolent, philanthropic, or cultural purposes and the supply enables them to carry out these purposes:
g: a trustee of a trust and a settlor of the trust, except if the trustee is a charitable or non-profit body with wholly or principally charitable, benevolent, philanthropic or cultural purposes:
h: a trustee of a trust and a trustee of another trust if the same person is a settlor of both trusts, except if, in relation to a supply of goods and services,—
i: either trustee is a charitable or non-profit body with wholly or principally charitable, benevolent, philanthropic, or cultural purposes; and
ii: the supply is made in, or enables, the carrying out of the charitable, benevolent, philanthropic, or cultural purposes:
hb: A trustee of a trust and a person who has a power of appointment or of removal of the trustee, except if the person—
i: holds the power as a provider of professional services; and
ii: is subject to a professional code of conduct, and disciplinary process intended to enforce compliance with the code, of an approved organisation as that term is defined in section 3(1)
iii: has not benefited from the trust; and
iv: is not eligible to benefit from the trust:
i: a person (person A) and another person (person B) if—
i: person B is associated with a third person (person C) under any one of paragraphs (a) to (hb)
ii: person C is associated with person A under any one of paragraphs (a) to (hb)
2: For the purpose of subsection (1)﻿(a), group of persons section YA 1
3: For the purpose of subsection (1)﻿(a) and (1)﻿(b)—
a: market value circumstance section YA 1 , as if the reference to this Act the Goods and Services Tax Act 1985
b: market value interest market value interest section YA 1
c: voting interest voting interest section YA 1
4: For the purpose of subsection (1)﻿(a) and (1)﻿(b), if a person (person A) and another person (person B) are associated persons subsection (1)﻿(bb)
5:
6: For the purpose of subsection (1)﻿(c)—
a: persons are connected by blood relationship if they are within the second degree of relationship:
b: persons are connected by marriage, civil union or de facto relationship if one is in a marriage, civil union or de facto relationship with the other or with a person who is connected by blood relationship to the other:
c: persons are connected by adoption if one has been adopted as the child of the other or as a child of a person who is within the first degree of relationship to the other.
7: For the purpose of subsection (1)﻿(g) and (1)﻿(h), settlor section YA 1
8: Subsection (1)﻿(i) does not apply if 2 persons (persons A and B) are both associated with a third person (person C) under subsection (1)﻿(c). Section 2A inserted 10 October 2000 section 83(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 2A(1)﻿(bb) inserted 1 January 2005 section 141 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 2A(1)﻿(c) substituted 26 April 2005 section 3(1) Goods and Services Tax Amendment Act 2005 Section 2A(1)﻿(c)﻿(iv) repealed 18 December 2006 section 211(a) Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 Section 2A(1)﻿(cb) inserted 18 December 2006 section 211(b) Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 Section 2A(1)﻿(db) inserted 31 March 2023 section 122(1) section 122(2) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 2A(1)﻿(e) repealed 26 June 2019 section 6(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 2A(1)﻿(f) substituted 8 December 2009 section 145(1) Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 Section 2A(1)﻿(g) substituted 27 March 2001 section 61(1) Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 Section 2A(1)﻿(h) substituted 8 December 2009 section 145(2) Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 Section 2A(1)﻿(hb) inserted 29 March 2018 section 398 Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 Section 2A(1)﻿(i)﻿(i) amended 26 June 2019 section 6(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 2A(1)﻿(i)﻿(ii) amended 26 June 2019 section 6(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 2A(2) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 2A(3)﻿(a) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 2A(3)﻿(a) amended 1 April 2005 section YA 2 Income Tax Act 2004 Section 2A(3)﻿(b) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 2A(3)﻿(c) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 2A(4) amended 18 March 2019 section 296 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 2A(5) repealed 26 April 2005 section 3(1) Goods and Services Tax Amendment Act 2005 Section 2A(6) amended 26 April 2005 section 3(1) Goods and Services Tax Amendment Act 2005 Section 2A(6)﻿(b) substituted 1 April 2007 section 3(2) Goods and Services Tax Amendment Act 2005 Section 2A(7) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007
3: Meaning of term financial services
1: For the purposes of this Act, the term financial services
a: the exchange of currency (whether effected by the exchange of bank notes or coin, by crediting or debiting accounts, or otherwise):
b: the issue, payment, collection, or transfer of ownership of a cheque or letter of credit:
c: the issue, allotment, drawing, acceptance, endorsement, or transfer of ownership of a debt security:
d: the issue, allotment, or transfer of ownership of an equity security or a participatory security:
e: underwriting or sub-underwriting the issue of an equity security, debt security, or participatory security:
f: the provision of credit under a credit contract:
g: the renewal or variation of a debt security, equity security, participatory security, or credit contract:
h: the provision, taking, variation, or release of a guarantee, indemnity, security, or bond in respect of the performance of obligations under a cheque, credit contract, equity security, debt security, or participatory security, or in respect of the activities specified in paragraphs (b) to (g):
i: the provision, or transfer of ownership, of a life insurance contract or the provision of re-insurance in respect of any such contract:
j: the provision, or transfer of ownership, of an interest in a retirement scheme retirement scheme
k: the provision or assignment of a futures contract through a defined market or at arm's length if—
i: the contract does not provide for the delivery of a commodity; or
ii: the contract provides for the delivery of a commodity and the supply of the commodity is an exempt supply; or
iii: the contract provides for the delivery of money or cryptocurrency
kaa: the provision or transfer of ownership of a financial option:
kaab: the provision or transfer of ownership of an option over cryptocurrency:
ka: the payment or collection of any amount of interest, principal, dividend, or other amount whatever in respect of any debt security, equity security, participatory security, credit contract, contract of life insurance, retirement scheme, financial option
l: agreeing to do, or arranging, any of the activities specified in paragraphs (a) to (ka) thereon:
lb: arranging the provision, or transfer, of ownership of cryptocurrency:
m: the investment in an entity, if—
i: the investment is in an equity security equal to or greater than 10% of all equity securities issued by the entity or in a participatory security equal to or greater than 10% of all participatory securities issued by the entity; and
ii: the investment allows the investor, or a person acting on behalf of the investor, to influence the management of the business of the entity:
n: the evaluation by an investor of an investment referred to in paragraph (m) in an entity and the planning or acting by the investor to influence the management of an entity for the principal purpose of preserving or increasing the value of such an investment.
2: For the purposes of this section— cheque Bills of Exchange Act 1908 section 5(2) contributory scheme
a: means any scheme or arrangement that, in substance and irrespective of the form of the scheme or arrangement, involves the investment of money where—
i: the investor acquires or may acquire an interest in or right in respect of property; and
ii: that interest or right will or may be, under the terms of investment, used or exercised in conjunction with any other interest in or right in respect of property acquired in similar circumstances, whether at the same time or not; but
b: does not include a scheme or arrangement described in paragraph (a) that has 5 or fewer investors, provided that neither the manager of the scheme nor any associated person of the manager is the manager of another such scheme or arrangement credit contract section 3 of the Credit Contracts Act 1981 currency debt security equity security general accounting and record package services
a: the provision of any financial clearing system which may form part of a settlement process; and
b: the posting of transactions to customers' accounts; and
c: the maintenance of those customers' accounts; and
d: the provision of any ancillary services (such as network management, software support and development) supplied in relation to the services referred to in any of paragraphs (a), (b), and (c),— but does not include the services referred to in paragraphs (a) to (d) where those services are supplied by a supplier of a financial service and are reasonably incidental and necessary to the supply of that financial service by that supplier of the financial service life insurance contract marriage, civil union or de facto relationship, Schedule 1, Part 4 participatory security ; and includes an interest in a unit trust (within the meaning of section YA 1 retirement scheme section 6(1)
3: Notwithstanding subsection (2), the terms debt security equity security participatory security
a: a life insurance contract or any other contract of insurance:
b:
c: a share in the share capital of a flat or office owning company to which subpart 6
d: an interest in a retirement scheme
3B: Despite subsection (2), a person who is a party to an arrangement that is a credit contract but is not a credit contract under section 7
3C: Despite subsection (2), a person who is a party to an arrangement that is not a credit contract but is a credit contract under section 7
4: Despite this section, financial services
a: the assignment or other transfer of a right to receive payment in relation to a taxable supply if, as a result of the assignment or transfer, output tax for the supply would not be or become attributable to a taxable period for the purpose of section 20(4)
b: debt collection services provided by a person other than the creditor whose debt is being collected.
5: Notwithstanding anything in this section, where any person supplies goods and services (being the supply of general accounting and record package services) to any person who is a supplier of financial services, or to a customer of the person who is a supplier of financial services, that supply shall, for the purposes of this Act, be deemed not to be a supply of financial services. Section 3(1)﻿(j) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 3(1)﻿(k) substituted 10 October 2000 section 84(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 3(1)﻿(k)﻿(iii) amended 30 March 2022 section 6(1) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 3(1)﻿(kaa) replaced 30 March 2017 section 346(1) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 3(1)﻿(kaab) inserted 30 March 2022 section 6(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 3(1)﻿(ka) inserted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 3(1)﻿(ka) amended 30 March 2017 section 346(2) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 3(1)﻿(l) amended 18 December 2006 section 212 Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 Section 3(1)﻿(l) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 3(1)﻿(lb) inserted 30 March 2022 section 6(3) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 3(1)﻿(m) added 18 December 2006 section 212 Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 Section 3(1)﻿(n) added 18 December 2006 section 212 Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 Section 3(2) contributory scheme inserted 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 3(2) credit contract substituted 3 April 2006 section 284(1) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 3(2) general accounting and record package services inserted 19 December 1989 Goods and Services Tax Amendment Act (No 2) 1989 Section 3(2) life insurance contract substituted 8 September 1999 section 78(1) Taxation (Remedial Matters) Act 1999 Section 3(2) life insurance contract amended 30 June 2014 section 186 Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 3(2) life insurance contract amended 1 April 2007 section 3(2) Goods and Services Tax Amendment Act 2005 Section 3(2) participatory security amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 3(2) retirement scheme inserted 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 3(2) superannuation scheme repealed 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 3(3)﻿(b) repealed 3 April 2006 section 284(2) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 3(3)﻿(c) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 3(3)﻿(d) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 3(3B) inserted 3 April 2006 section 284(3) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 3(3C) inserted 3 April 2006 section 284(3) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 3(4) substituted 10 October 2000 section 84(2) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 3(5) added 19 December 1989 Goods and Services Tax Amendment Act (No 2) 1989
3A: Meaning of input tax
1: Input tax
a: tax charged under section 8(1)
b: tax levied under section 12(1) Customs and Excise Act 2018
c: an amount determined under subsection (3) after applying subsection (2).
2: In the case of a supply by way of sale to a registered person of secondhand goods situated in New Zealand, the amount of input tax is determined under subsection (3) if—
a: the supply is not a taxable supply; and
ab: the supply is not of goods that—
i: were acquired before 1 October 1986 by the registered person or by a person who, when acquiring the goods, is an associated person of the registered person; and
ii: have not been owned, on or after 1 October 1986, by a person who, at the time, is not the registered person and not an associated person of the registered person; and
b: the supply is not—
i: a supply of goods previously supplied to a registered person who has entered them for home consumption under the Customs and Excise Act 2018
ii: a supply of goods made by a non-resident, whether or not they made the earlier supply referred to in subparagraph (i); and
c: the goods acquired by the person for making taxable supplies are either—
i: not charged with tax at the rate of 0% under section 11A(1)﻿(q) or (r)
ii: charged with tax at the rate of 0% under section 11A(1)﻿(q) or (r)
3: The amount of input tax is—
a: if the supplier and the recipient are associated persons, the lesser of—
i: the tax fraction of the original purchase price of the goods when they were received by the supplier; and
ib:
ii: the tax fraction of the purchase price; and
iii: the tax fraction of the open market value of the supply; or
b: if the supplier and the recipient are associated persons and the supplier is deemed to have made a supply of the goods under section 5(3) section 10(7A)
i: the tax fraction of the open market value of the deemed supply under section 5(3)
ii: the tax fraction of the purchase price; and
iii: the tax fraction of the open market value of the supply; or
c: if the supplier and the recipient are associated persons and the supplier is deemed to have made a supply of the goods under section 5(3) section 10(8)
i: the tax fraction of the valuation under section 10(8) section 5(3)
ii: the tax fraction of the purchase price; and
iii: the tax fraction of the open market value of the supply; or
d: if the supplier and the recipient are not associated persons and the supply is not the only matter to which the consideration relates, the lesser of—
i: the tax fraction of the purchase price; and
ii: the tax fraction of the open market value of the supply; or
e: in all other cases, the tax fraction of the consideration in money for the supply.
3B: Despite subsection (3)﻿(a), if a supply wholly or partly consists of land, and is part of an arrangement involving more than 2 associated parties and more than 1 supply, the amount of input tax for the supply must not be more than the amount accounted for as output tax for all supplies that are part of the arrangement.
3C: For a supply of goods or services meeting the requirements of section 21B(1)﻿(a)﻿(i) and (b)
4:
4A:
5: For the purpose of subsection (3), tax fraction Section 3A inserted 10 October 2000 section 85(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 3A(1)﻿(a) substituted 1 April 2011 section 5(1) Taxation (GST and Remedial Matters) Act 2010 Section 3A(1)﻿(b) substituted 1 April 2011 section 5(1) Taxation (GST and Remedial Matters) Act 2010 Section 3A(1)﻿(b) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 3A(2)﻿(ab) inserted 30 March 2022 section 7(1) section 7(3) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 3A(2)﻿(b) replaced 2 November 2012 section 208(1) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 3A(2)﻿(b)﻿(i) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 3A(2)﻿(c) substituted 1 April 2011 section 5(2) Taxation (GST and Remedial Matters) Act 2010 Section 3A(3)﻿(a)﻿(i) replaced 31 March 2023 section 123(1) section 123(2) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 3A(3)﻿(a)﻿(ib) repealed 31 March 2023 section 123(1) section 123(2) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 3A(3B) inserted 1 April 2011 section 5(3) Taxation (GST and Remedial Matters) Act 2010 Section 3A(3C) inserted 1 April 2011 section 5(3) Taxation (GST and Remedial Matters) Act 2010 Section 3A(3C) amended 2 November 2012 section 208(2) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 3A(4) repealed 2 November 2012 section 208(3) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 3A(4A) repealed 1 April 2011 section 5(4) Taxation (GST and Remedial Matters) Act 2010
4: Meaning of term open market value
1: For the purposes of this section—
a: the term similar supply
b: the open market value of a supply shall include any goods and services tax charged pursuant to section 8(1)
2: For the purposes of this Act, the open market value of any supply of goods and services at any date shall be the consideration in money which the supply of those goods and services would generally fetch if supplied in similar circumstances at that date in New Zealand, being a supply freely offered and made between persons who are not associated persons.
3: Where the open market value of any supply of goods and services cannot be determined under subsection (2), the open market value shall be the consideration in money which a similar supply would generally fetch if supplied in similar circumstances at that date
4: Where the open market value of any supply of goods and services cannot be determined pursuant to subsection (2) or subsection (3), the open market value shall be determined in accordance with a method approved by the Commissioner which provides a sufficiently objective approximation of the consideration in money which could be obtained for that supply of those goods and services.
5: For the purposes of this Act the open market value of any consideration, not being consideration in money, for a supply of goods and services shall be ascertained in the same manner, with any necessary modifications, as the open market value of any supply of goods and services is ascertained pursuant to the foregoing provisions of this section. Section 4(1)﻿(b) substituted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 4(3) amended 24 March 1988 Goods and Services Tax Amendment Act 1988
4B: Meaning of distantly taxable goods
1: Distantly taxable goods
a: are moveable personal property, other than choses in action; and
b: are not alcoholic beverages, or tobacco or tobacco products, that are exempt from regulations made under section 406(1)
c: are supplied by—
i: a non-resident, and the goods are outside New Zealand at the time of the supply:
ii: a person who is the supplier under section 60C 60D
iii: a person who is the supplier of the goods under section 60E
d: are delivered at a place in New Zealand and the supplier or an underlying supplier makes, or arranges, or assists, the delivery; and
e: each have—
i: an estimated customs value under section 10B
ii: a supplier that has made an election under section 10C
2: If distantly taxable goods are part of a supply that also includes items of goods that do not meet the requirements of subsection (1)﻿(a) to (e), the distantly taxable goods are treated as being a supply and the other items are treated as being a separate supply. Section 4B inserted 1 December 2019 section 7 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
5: Meaning of term supply
1: For the purposes of this Act, the term supply
2: For the purposes of this Act, where any goods acquired (whether in terms of a hire purchase agreement first person second person
a: the supply of those goods would not be a taxable supply if those goods were sold by the first person (notwithstanding that the first person may not be the owner of those goods) and the first person has furnished to the second person a statement in writing stating fully and correctly the reasons why that supply would not be a taxable supply; or
b: where the second person has not been notified as described in
3: For the purposes of this Act, where a person ceases to be a registered person, any goods and services then forming part of the assets of a taxable activity carried on by that person section 58
3A:
3B: For the purposes of this Act, when a person who is a non-resident ceases to be a registered person,—
a: any goods that are part of the assets of the taxable activity carried on by the person that are present in New Zealand at the time the person ceases to be registered are treated as supplied by the person in the course of the taxable activity at a time immediately before the person ceases to be registered:
b: any services that would be performed in New Zealand as part of the taxable activity carried on by the person at the time the person ceases to be registered are treated as performed by the person in the course of the taxable activity at a time immediately before the person ceases to be registered.
3C: For an asset affected by subsection (3) or (3B), if a transfer of ownership of the asset would be a financial service, the subsection deems the person to make a supply of the asset by a transfer of ownership.
4: For the purposes of this Act, a credit agreement to which subpart 2 section 36M
5: For the purposes of this Act, any contract that is a layby sale to which subpart 1 provided that a supply of services shall, in respect of any such contract, be deemed to have taken place where—
a: a layby sale is cancelled pursuant to section 36F 36G
b: the seller either—
i: retains any amount paid to the seller to recoup that seller's cancellation charge
ii: recovers any amount (including, or in addition to, the amount referred to in subparagraph (i)) from the buyer,— pursuant to section 36H(b) and (c)
6: For the purposes of this Act, every public authority is deemed to supply goods and services where, within the meaning of the Public Finance Act 1989
6AA: For the purposes of this Act, a levy that is paid under the Climate Change Response Act 2002
a: the New Zealand Transport Agency, if the levy is paid under section 228
b: the Environmental Protection Authority established by section 7 section 230
6AAB: For the purposes of this Act, a fee or charge paid to a person pursuant to regulations made under section 167(1)﻿(j)
6A: For the purposes of this Act, any registration fee paid pursuant to section 243(1)﻿(b)﻿(i) section 244(2)
6AB: For the purposes of this Act, a levy that is paid to Fire and Emergency New Zealand under subpart 2 shortfall penalty (within the meaning of that Act) levy payer or policyholder Fire and Emergency New Zealand
6AC: For the purposes of this Act, a levy that is paid under the Waste Minimisation Act 2008
a: a payment made by a waste disposal facility user to a waste disposal facility operator; and
b: a payment made by a waste disposal facility operator to the Secretary for the Ministry for the Environment; and
c: a payment made by the Secretary to a funding recipient or territorial authority to fund waste minimisation activities in the community as described in section 30
6B: For the purposes of this Act, any amount of road user charges paid pursuant to the Road User Charges Act 2012
6BB: For the purposes of this Act,—
a: any amount of regional fuel tax ( RFT
b: any amount of RFT rebate paid under section 65ZC
6C: For the purposes of this Act, the amount of any deposit specified in, and paid under, section 127A section 144 section 146F Electoral Act 1993
6CA: For the purposes of this Act, the amount of any deposit referred to in, and paid under, section 55 section 59
6D: For the purposes of this Act, where any payment in the nature of a grant or subsidy is made on behalf of the Crown or by any public authority to—
a: any person
b: any person for the benefit and on behalf of another person in relation to or in respect of that other person's taxable activity,— that payment shall be deemed to be consideration for a supply of goods and services by the person to whom or for whose benefit the payment is made in the course or furtherance of that person's taxable activity.
6E: For the purposes of subsection (6D), the term payment in the nature of a grant or subsidy
a: includes—
i: any suspensory loan or advance, when that loan or advance becomes non-repayable by reason of its conditions for non-repayment being satisfied; and
ii: any payment in the nature of a grant or subsidy of a kind that is declared by the Governor-General by Order in Council to be a taxable grant or subsidy for the purposes of subsection (6D), being a payment that, but for such declaration, would be excluded from this definition by virtue of paragraph (b)﻿(ii):
b: does not include—
i: any payment of a benefit paid under Social Security Act 2018
ii: subject to paragraph (a)﻿(ii), any other payment made to a person where the payment is for the personal use and benefit of the person or, as the case may be, a relative (as defined in paragraph (a) section YA 1
iii: any payment of a kind that is declared by the Governor-General by Order in Council not to be a taxable grant or subsidy for the purposes of subsection (6D).
6EB: An order under subsection (6E)﻿(a)﻿(ii) or (b)﻿(iii) is secondary legislation ( see Part 3
6EC: A charge, including a fee or a levy, payable under legislation is deemed to be consideration for a supply of goods and services.
6ED: Subsection (6EC) does not apply to a charge—
a: listed in the schedule
b: that is, or is in the nature of,—
i: a fine:
ii: a penalty:
iii: interest:
iv: a general tax.
6EE: For the purposes of subsection (6ED), a general tax means a charge in the nature of a tax imposed by a tax law where the revenue is not earmarked in legislation for a particular purpose or function. Examples
For the purposes of section 5(6ED) and (6EE a general tax is income tax: not a general tax is a levy used to fund the performance of regulatory functions.
6F: For the purposes of this Act, the amount payable by the Crown or the agency under the Public and Community Housing Management Act 1992
7: For the purposes of this Act—
a: every local authority is deemed to supply goods and services to any person where any amount of rates is payable by that person to that local authority:
b: the Chatham Islands Council is treated as supplying goods and services to a person if an amount of council dues, as defined in section 2
7B: For the purposes of this Act, a local authority is treated as supplying goods and services to a person if the local authority requires a contribution from the person as—
a: a financial contribution that is a condition of a resource consent under the Resource Management Act 1991
b: a development contribution under the Local Government Act 2002
7C: For the purposes of this Act, a person who makes a contribution to a local authority is treated as supplying goods and services to the local authority to the extent that the contribution consists of land and is—
a: a financial contribution that is a condition of a resource consent under the Resource Management Act 1991
b: a development contribution under the Local Government Act 2002
7D:
7E:
7F: For the purposes of this Act, when a person is liable to pay a levy set under section 40 section 7
8A: For the purposes of this Act, a levy or other amount paid to a unit title body corporate by a member of the body corporate , other than as reimbursement for a payment by the body corporate of an amount that would, if not charged to the body corporate, be payable by the member for an exempt supply to the member,
8AB: For the purposes of this Act, a unit title body corporate is treated as receiving, on the day when the body corporate becomes a registered person (the registration day
8: Despite any other provision of this Act, for the purposes of this Act, if any racing betting or sports betting (within the meaning of section 5(1) section 5(1)
9:
10: For the purposes of this Act, an amount of money paid by a person to participate in gambling (including a New Zealand lottery) or in a prize competition is treated as a payment for a supply of services by the following:
a: for gambling, by the person, society, licensed promoter, or organiser who under the Gambling Act 2003
b: for a prize competition, by the person who conducts the prize competition.
10B: For the purposes of this Act, when a person who is resident in New Zealand pays an amount of money to participate in gambling or in a prize competition through a supply of remote services that are physically performed outside New Zealand, the payment is treated as a payment for a supply of services by the person who conducts the gambling or prize competition, as applicable.
11: For the purposes of subsections (10) and (10B)
a: the terms gambling New Zealand lottery licensed promoter society section 4(1)
b: the term organiser section 236
11A:
11B: Despite anything in this Act, for the purposes of this Act if a person pays to a casino an amount in money—
a: to purchase a chip or otherwise participate in gambling played or conducted in a casino venue; or
b: as commission for participating in gambling played or conducted in a casino venue,— the money paid must be treated as payment for the supply of services by the holder of the casino operator's licence.
11C: For the purposes of subsection (11B), the terms casino venue chip gambling section 4(1)
11CB: For the purposes of this Act, if a registered person in the course of a taxable activity receives a prize from a racing club or racing code for the performance in a race of a horse or greyhound owned by the registered person, the prize is treated as being consideration for a service provided by the registered person to the racing club or racing code in the course of the taxable activity.
11CC: For the purposes of subsection (11CB), race racing club racing code section 5(1) Racing Industry Act 2020
11D: Subsections (11E) to (11I) apply to a token, stamp or voucher that gives the recipient the right to receive goods and services, other than a token, stamp or voucher issued for no consideration
11E: The issue or sale
11EA: A supply does not include the issue or sale of a token, stamp or voucher by a registered person to another registered person who subsequently issues or sells the token, stamp or voucher, unless the first-mentioned registered person is the person who supplies the goods and services on redemption of the token, stamp or voucher.
11F: A supply of goods and services is not treated as being made to the extent that goods and services are supplied for the redemption of a token, stamp or voucher.
11G: Despite subsection (11F), the supplier of a token, stamp or voucher, with a face value may treat the supply of goods and services on the redemption of the token, stamp or voucher instead of the issue or sale, as a supply of goods and services by the redeemer of the token, stamp, or voucher
a: if the supply is a supply of remote services or of distantly taxable goods; or
b: when a supply does not meet the requirements of paragraph (a)—
i: if it is not practical to treat the issue or sale as a supply of goods and services; and
ii: if the supplier of the goods and services and the issuer or seller of the token, stamp, or voucher are, or could be, different persons, the issuer and the supplier, or the seller and the supplier, agree or are parties to an agreement.
11GA: For the purpose of subsection (11G)﻿(a)
11H: Subsection (11G) does not apply to the extent that the consideration that is received for the supply is more than the face value of the token, stamp or voucher.
11I: Subsection (11G) does not apply to the supply of—
a: an adhesive label, or a mark or design, that is—
i: issued or sold by a person to another person; and
ii: affixed to, impressed on, or printed on stationery; and
iii: indicates pre-payment of the fee chargeable for the carriage of a letter, parcel, or other article; and
iv: not intended to distinguish the article to which it relates from similar articles carried by the same person:
b: a token, stamp or voucher that gives the recipient the right to receive services described in section 11A(2)
12: The disposition of a taxable activity as a going concern shall be deemed to be a supply of goods made in the course or furtherance of the taxable activity.
13: For the purpose of this Act, except for subsection (13B) and section 20(3)
a: on the day the registered person receives the payment; and
b: in the course or furtherance of the registered person's taxable activity: provided that this subsection shall not apply in respect of any
a: the supply of that contract of insurance is not a supply charged with tax pursuant to section 8(1)
b: that payment is in respect of an entitlement for any loss of earnings (being earnings within the meaning of the Accident Compensation Act 1982 or the Accident Rehabilitation and Compensation Insurance Act 1992 or the Accident Insurance Act 1998 or the Accident Compensation Act 2001
c: the supply of the contract of insurance is a supply that is chargeable with tax only because sections 5B 8(4B) apply to it; or
d: the supply of the contract of insurance is a supply of remote services that is zero-rated under section 11A(1)﻿(x)
13AA: If a registered person claims a deduction in accordance with section 20(3) and (3K)
13A: For the purposes of this Act, if a registered person receives any refund of excise duty or excise-equivalent duty paid out of a Crown Bank Account section 41 with the intention of using the supply for making taxable supplies
13B: For the purposes of this Act, where—
a: an insurer recovers an amount (other than aggravated or exemplary damages) as a result of the exercise of rights acquired by subrogation under a contract of insurance; and
b: a deduction under section 20(3)﻿(d) the amount recovered is deemed to be consideration received for a supply of services performed in the course of that insurer's taxable activity, and a supply of services is deemed to be performed on the day of the insurer's receipt of the amount.
14: If a supply is charged with a tax under section 8 section 11 11A 11AB 11B 11C
14B: If part of a supply of an equity security or participatory security is the supply of a right to receive supplies of goods and services that are not exempt supplies, the supply of the right is treated as being a supply of goods and services made for a consideration.
15: When either of the following supplies are included in a supply, they are deemed to be a separate supply from the supply of any other real property that is included in the supply:
a: a supply of a principal place of residence:
b: a supply referred to in section 14(1)﻿(d)
c: a supply that a person elects to apply section 6(3)﻿(e)
d: the supply described in section 91(4)
16: Subsection (16C) applies where a person—
a: has either—
i: claimed a deduction under section 20(3)
ii: acquired goods or services that were zero-rated under section 11(1)﻿(mb)
iii: acquired goods or services that were zero-rated under section 11(1)﻿(m)
b: disposed of the goods or services or ceased to be a registered person; and
c: is not using the goods or services in the course or furtherance of a taxable activity at the time the goods or services are disposed of or deemed to be supplied; and
d: has not previously returned output tax for the goods or services that is equal to or greater than—
i: the deduction under section 20(3)
ii: the nominal GST component under section 20(3J)
16B: Subsection (16C) also applies where—
a: the registered person has disposed of the goods or services or the person ceased to be a registered person; and
b: the Commissioner considered that the person, prior to disposal,—
i: increased their non-taxable use of the goods or services; and
ii: applied section 21FB
16C: A disposal of the goods or services referred to in subsection (16) or (16B) by the person—
a: is deemed to be made in the course or furtherance of a taxable activity carried on by the person; and
b: where the person ceases to be a registered person, the goods or services are deemed to be supplied by the person immediately before the person ceases to be a registered person.
17:
18:
19:
20: A supply of services to which section 11A(1)﻿(ma)
21: If goods and services are provided under warranty, the supply of the goods and services is treated as a supply of services for the purpose of section 11A(1)﻿(ma)
22: In relation to a supply to which subsection (2) applies, if the supply by the first person would be zero-rated under section 11(1)﻿(mb)
23: Subsection (23B) applies if—
a: section 11(1)﻿(mb)
b: after the date on which the relevant transaction is settled, it is found by the supplier of the goods or the Commissioner that section 11(1)﻿(mb)
c: the recipient of the goods did not provide the supplier with correct or sufficient information under section 78F
23B: The recipient of the supply of the goods referred to in subsection (23) is treated as if they were a supplier making, on the date on which the error referred to in subsection (23)﻿(b) is found, a taxable supply of the goods.
24: If a supply that wholly or partly consists of land is made, and the supply includes the provision of services, the supply of the services is treated as a supply of goods for the purposes of section 11(1)﻿(mb)
24B: If a registered person claims a deduction in accordance with section 20(3) and (3K)
25: For the purposes of this Act, an amount charged for the late payment of an account is treated as being consideration for a supply of services in the course or furtherance of a taxable activity, whether the amount is described as a fee, penalty, or other charge. But this subsection does not apply to the extent to which the amount is penalty or default interest, or a charge in the nature of penalty or default interest, that is imposed under—
a: a contract for the supply of goods and services:
b: an enactment.
26: A supply under subsection (25) is treated for tax purposes in the same way as the supply to which the amount charged for the late payment relates.
27: The Commissioner may treat a person resident in New Zealand who receives a supply as if they were making a supply of goods or services that is chargeable with tax under section 8(1)
aa: the supply is—
i: a supply of distantly taxable goods to which section 8(3)﻿(ab)
ii: a supply of remote services to which section 8(3)﻿(c) section 60(1AB) section 60C 60D
a: the person has, for the purposes of avoiding the payment of tax or of an amount on account of tax
b: after the date on which the supply of the goods is made or
i: zero-rated under section 11A(1)﻿(x)
ii: not being goods, or a service, supplied in New Zealand; or
iii: a supply of distantly taxable goods having a value that is less than the cost of the goods, if the supplier meets the requirements of section 60G(1)
c: either—
i: the act of the person described in paragraph (a) is a repeated occurrence:
ii: the amount of tax that was not charged on the supply through the act described in paragraph (a) is substantial.
28: The Commissioner may treat a person who is a non-resident, and is the underlying supplier for a supply of distantly taxable goods made by the operator of a marketplace, as the supplier of the goods if—
a: the person has knowingly notified a fact or provided information that is altered, false, or misleading; and
b: after the date on which the supply of the goods is made, it is found that the notification or provision of information has caused the operator of the marketplace to return a deficient amount of output tax on the supply; and
c: the person’s behaviour described in paragraph (a) is a repeated occurrence or the amount of tax on the supply that was not collected by the marketplace operator is substantial. The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 5(2) substituted 19 December 1989 Goods and Services Tax Amendment Act (No 2) 1989 Section 5(2) amended 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003 Section 5(2)﻿(a) replaced 30 March 2017 section 347(1) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 5(2)﻿(b) amended 2 June 2016 section 183(2) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 5(3) amended 22 June 1987 Goods and Services Tax Amendment Act 1987 Section 5(3A) repealed 10 October 2000 section 86(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 5(3B) inserted 1 April 2014 section 121(1) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 5(3C) inserted 30 March 2017 section 347(2) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 5(4) amended 17 June 2014 section 41(2) Fair Trading Amendment Act 2013 Section 5(5) amended 17 June 2014 section 41(2) Fair Trading Amendment Act 2013 Section 5(5)﻿(a) amended 17 June 2014 section 41(2) Fair Trading Amendment Act 2013 Section 5(5)﻿(b) amended 17 June 2014 section 41(2) Fair Trading Amendment Act 2013 Section 5(5)﻿(b)﻿(i) amended 17 June 2014 section 41(2) Fair Trading Amendment Act 2013 Section 5(6) substituted 10 April 1995 Goods and Services Tax Amendment Act 1995 Section 5(6AA) inserted 1 January 2013 section 103 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 5(6AAB) inserted 1 July 2020 section 16(2) Land Transport (Rail) Legislation Act 2020 Section 5(6A) substituted 1 May 2011 section 35(4) Land Transport Amendment Act 2009 Section 5(6AB) inserted 21 June 2005 section 155 Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 Section 5(6AB) amended 30 March 2022 section 8(1) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 5(6AB) amended 1 July 2017 section 197 Fire and Emergency New Zealand Act 2017 Section 5(6AC) inserted 8 December 2009 section 147 Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 Section 5(6B) replaced 1 August 2012 section 94 Road User Charges Act 2012 Section 5(6BB) inserted 27 June 2018 section 7(3) Land Transport Management (Regional Fuel Tax) Amendment Act 2018 Section 5(6C) substituted 28 February 2002 section 102(1) Electoral Amendment Act 2002 Section 5(6CA) inserted 28 February 2002 section 102(1) Electoral Amendment Act 2002 Section 5(6D) inserted 28 June 1991 section 2(1) Goods and Services Tax Amendment Act (No 3) 1991 Section 5(6D)﻿(a) amended 1 April 2023 section 124(3) section 124(12) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 5(6E) inserted 28 June 1991 section 2(1) Goods and Services Tax Amendment Act (No 3) 1991 Section 5(6E)﻿(b)﻿(i) amended 26 November 2018 section 459 Social Security Act 2018 Section 5(6E)﻿(b)﻿(i) amended 1 October 1998 section 57 Social Security Amendment Act 1998 Section 5(6E)﻿(b)﻿(ii) amended 30 March 2022 section 8(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 5(6E)﻿(b)﻿(ii) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 5(6E)﻿(b)﻿(ii) amended 1 April 2005 section YA 2 Income Tax Act 2004 Section 5(6EB) inserted 28 October 2021 section 3 Secondary Legislation Act 2021 Section 5(6EC) inserted 1 July 2023 section 124(4) section 124(13) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 5(6ED) inserted 1 July 2023 section 124(4) section 124(13) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 5(6EE) inserted 1 July 2023 section 124(4) section 124(13) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 5(6F) inserted 28 May 2015 section 4 Taxation (Social Housing Reform) Act 2015 Section 5(6F) amended 23 March 2020 section 242 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 5(6F) amended 1 October 2019 section 33 Kāinga Ora–Homes and Communities Act 2019 Section 5(7)﻿(a) substituted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 5(7)﻿(a) proviso repealed 1 July 2003 section 262 Local Government Act 2002 Section 5(7)﻿(b) substituted 10 October 2000 section 86(3) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 5(7B) inserted 25 November 2003 section 144(1) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 5(7C) inserted 25 November 2003 section 144(1) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 5(7D) repealed 6 August 2010 section 5(2) Affordable Housing: Enabling Territorial Authorities Act Repeal Act 2010 Section 5(7E) repealed 6 August 2010 section 5(2) Affordable Housing: Enabling Territorial Authorities Act Repeal Act 2010 Section 5(7F) inserted 7 August 2020 section 161 Infrastructure Funding and Financing Act 2020 Section 5(8A) inserted 24 February 2016 section 274(1) Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 Section 5(8A) amended 30 March 2022 section 8(3) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 5(8AB) inserted 24 February 2016 section 274(2) Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 Section 5(8) replaced 1 August 2020 section 129 Racing Industry Act 2020 Section 5(9) repealed 1 August 2003 section 69(1) Racing Act 2003 Section 5(10) replaced 17 July 2013 section 121(2) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 5(10B) inserted 1 October 2016 section 53(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 5(11) substituted 1 July 2004 section 374 Gambling Act 2003 Section 5(11) amended 1 October 2016 section 53(2) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 5(11A) repealed 1 August 1990 section 3(1) Goods and Services Tax Amendment Act 1990 Section 5(11B) substituted 1 July 2004 section 374 Gambling Act 2003 Section 5(11C) substituted 1 July 2004 section 374 Gambling Act 2003 Section 5(11CB) inserted 30 March 2017 section 347(3) section 347(4) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 5(11CC) inserted 30 March 2017 section 347(3) section 347(4) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 5(11CC) amended 1 August 2020 section 129 Racing Industry Act 2020 Section 5(11D) inserted 10 October 2000 section 86(4) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 5(11D) amended 27 March 2001 section 62(1) Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 Section 5(11E) inserted 10 October 2000 section 86(4) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 5(11E) amended 27 March 2001 section 62(2) Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 Section 5(11EA) inserted 27 March 2001 section 62(3) Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 Section 5(11F) substituted 27 March 2001 section 62(4) Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 Section 5(11G) substituted 27 March 2001 section 62(5) Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 Section 5(11G) amended 1 December 2019 section 8(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 5(11G) amended 24 October 2001 section 238(1)﻿(a) Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 Section 5(11G)﻿(a) replaced 1 December 2019 section 8(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 5(11G)﻿(b) replaced 31 March 2023 section 124(6) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 5(11GA) inserted 27 March 2001 section 62(5) Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 Section 5(11GA) amended 24 February 2016 section 274(3) Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 Section 5(11H) inserted 10 October 2000 section 86(4) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 5(11I) inserted 10 October 2000 section 86(4) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 5(11I)﻿(a) substituted 3 April 2006 section 285(1) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 5(13) amended 10 October 2000 section 86(5) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 5(13) substituted 11 December 1987 Goods and Services Tax Amendment Act (No 2) 1987 Section 5(13) amended 10 October 2000 section 86(6) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 5(13) proviso paragraph (b) substituted 19 December 1998 Accident Insurance Act 1998 Section 5(13) proviso paragraph (b) amended 3 March 2010 section 5(1)﻿(b) Accident Compensation Amendment Act 2010 Section 5(13) proviso paragraph (b) amended 2 November 2012 section 209(1) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 5(13) amended 1 April 2002 section 338 Accident Compensation Act 2001 Section 5(13) proviso paragraph (c) inserted 2 November 2012 section 209(1) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 5(13) proviso paragraph (c) amended 1 October 2016 section 53(3) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 5(13) proviso paragraph (d) inserted 1 October 2016 section 53(4) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 5(13AA) inserted 18 March 2019 section 297(1) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 5(13A) amended 18 March 2019 section 297(2) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 5(13A) substituted 13 November 2003 section 90 Land Transport Management Act 2003 Section 5(13A) amended 25 January 2005 section 65R(3) Public Finance Act 1989 Section 5(13B) inserted 2 September 1996 section 52(1) Taxation (Remedial Provisions) Act 1996 Section 5(13B)﻿(b) substituted 10 October 2000 section 86(8) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 5(14) substituted 6 October 2009 section 705 Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 Section 5(14B) inserted 3 April 2006 section 285(2) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 5(15) substituted 29 August 2011 section 236(1) Taxation (Tax Administration and Remedial Matters) Act 2011 Section 5(15)﻿(c) inserted 31 March 2023 section 124(7) section 124(15) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 5(15)﻿(d) inserted 1 April 2023 section 124(8) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 5(16) replaced 1 April 2023 section 124(9) section 124(16) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 5(16B) inserted 1 April 2023 section 124(9) section 124(16) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 5(16C) inserted 1 April 2023 section 124(9) section 124(16) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 5(17) repealed 1 April 2011 section 6(2) Taxation (GST and Remedial Matters) Act 2010 Section 5(18) repealed 30 March 2022 section 8(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 5(19) repealed 1 April 2023 section 124(10) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 5(20) added 17 October 2002 section 98(1) Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 Section 5(21) added 17 October 2002 section 98(1) Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 Section 5(22) added 1 April 2011 section 6(3) Taxation (GST and Remedial Matters) Act 2010 Section 5(23) replaced 1 April 2023 section 124(11) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 5(23B) inserted 1 April 2023 section 124(11) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 5(24) added 1 April 2011 section 6(3) Taxation (GST and Remedial Matters) Act 2010 Section 5(24B) inserted 18 March 2019 section 297(3) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 5(25) inserted 2 November 2012 section 209(2) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 5(26) inserted 2 November 2012 section 209(2) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 5(27) inserted 1 October 2016 section 53(5) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 5(27) amended 1 December 2019 section 8(3) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 5(27)﻿(aa) inserted 1 December 2019 section 8(3) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 5(27)﻿(a) amended 1 December 2019 section 8(4)﻿(a) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 5(27)﻿(a) amended 1 December 2019 section 8(4)﻿(b) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 5(27)﻿(b) amended 1 December 2019 section 8(5) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 5(27)﻿(b)﻿(ii) amended 1 December 2019 section 8(6) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 5(27)﻿(b)﻿(iii) inserted 1 December 2019 section 8(7) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 5(28) inserted 1 December 2019 section 8(8) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
5B: Supply of certain imported
goods and For the purpose of the definition of output tax and sections 8(1) 15A to 15E 19A 20(4) 20B 25AA 51 52 57 75 76(6) 78B 78BA 78C goods or services section 8(4B) Section 5B inserted 1 January 2005 section 145 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 5B heading amended 1 December 2019 section 9(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 5B amended 1 December 2019 section 9(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 5B amended 6 October 2009 section 706 Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
6: Meaning of term taxable activity
1: For the purposes of this Act, the term taxable activity
a: any activity which is carried on continuously or regularly by any person, whether or not for a pecuniary profit, and involves or is intended to involve, in whole or in part, the supply of goods and services to any other person for a consideration; and includes any such activity carried on in the form of a business, trade, manufacture, profession, vocation, association, or club:
b: without limiting the generality of paragraph (a), local authority or public purpose Crown-controlled company
2: Anything done in connection with the beginning or ending, including a premature ending, of a taxable activity is treated as being carried out in the course or furtherance of the taxable activity.
3: Notwithstanding anything in subsections (1) and (2), for the purposes of this Act the term taxable activity
a: being a natural person,
aa: not being a natural person, any activity which, if it were carried on by a natural person, would be carried on essentially as a private recreational pursuit or hobby; or
b: any engagement, occupation, or employment under any contract of service or as a director of a company, subject to subsection (4); or
c: any engagement, occupation, or employment—
i: pursuant to the Members of Parliament (Remuneration and Services) Act 2013 or the Governor-General Act 2010
ii: as a Judge, Solicitor-General, Controller and Auditor-General, or Ombudsman:
iia: pursuant to an appointment made by the Governor-General or the Governor-General in Council and evidenced by a warrant or by an Order in Council or by a notice published in the Gazette section 2(2)
iii: as a Chairman or member of any local authority or any other body, subject to subsection (4)
d: any activity to the extent to which the activity involves the making of exempt supplies; or
e: an activity involving the supply of goods by way of sale that a registered person has elected is not a taxable activity, provided—
i: the person has not previously claimed a deduction under section 20(3)
ii: the goods were not acquired for the principal purpose of making taxable supplies; and
iii: the goods were not used for the principal purpose of making taxable supplies; and
iv: the goods were not acquired as zero-rated supplies under section 11(1)﻿(m) or (mb) , unless the person has chosen to return the nominal GST component as output tax under section 20(3J)﻿(a)﻿(iv)
4: Despite subsection (3)﻿(b) and (c)﻿(iii), if a director, member, or other person referred to in those paragraphs is paid a fee or another amount in relation to their engagement, occupation, or employment in circumstances in which they are required to account for the payment to their employer, the payment is treated as consideration for a supply of services by the employer to the person who made the payment to the director, member, or other person.
5: For the purposes of subsection (3)﻿(b) and (c)﻿(iii) Section 6(1)﻿(b) amended 18 March 2019 section 298 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 6(1)﻿(b) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 6(2) substituted 10 October 2000 section 87(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 6(3)﻿(a) amended 24 March 1988 Goods and Services Tax Amendment Act 1988 Section 6(3)﻿(aa) inserted 24 March 1988 Goods and Services Tax Amendment Act 1988 Section 6(3)﻿(b) amended 30 June 2014 section 187(1)﻿(a) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 6(3)﻿(b) proviso repealed 30 June 2014 section 187(1)﻿(b) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 6(3)﻿(c)﻿(i) amended 16 December 2013 section 66 Members of Parliament (Remuneration and Services) Act 2013 Section 6(3)﻿(c)﻿(i) amended 23 November 2010 section 21(2) Governor-General Act 2010 Section 6(3)﻿(c)﻿(iia) inserted 24 March 1988 Goods and Services Tax Amendment Act 1988 Section 6(3)﻿(c)﻿(iii) amended 30 March 2022 section 9 Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 6(3)﻿(c)﻿(iii) amended 30 June 2014 section 187(2) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 6(3)﻿(e) inserted 31 March 2023 section 125(1) section 125(3) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 6(3)﻿(e)﻿(iv) amended 1 April 2023 section 125(2) section 125(4) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 6(4) inserted 30 June 2014 section 187(3) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 6(5) inserted 30 June 2014 section 187(3) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 6(5) amended 30 March 2017 section 348 Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017
7: Act to bind Crown
This Act shall bind the Crown.
2: Imposition of tax
8: Imposition of goods and services tax on supply
1: Subject to this Act, a tax, to be known as goods and services tax, shall be charged in accordance with the provisions of this Act at the rate of 15
2: For the purposes of this Act, goods and services shall be deemed to be supplied in New Zealand if the supplier is resident in New Zealand, and shall be deemed to be supplied outside New Zealand if the supplier is a non-resident
2B: To the extent to which a supply of services consists of the facilitation of inbound tour operations, the supply is chargeable with tax under subsection (1), and section 11A
2C: Despite subsection (2B), the part of the supply that consists of the facilitation of inbound tour operations is charged at the rate of 0% if—
a: a registered person supplies the services in the period from 1 July 2007 to 30 June 2008 (the transitional period
b: the consideration for the supply is an amount quantified—
i: on the basis of the person's gross margin attributable to the facilitation of inbound tour operations; or
ii: by other means that the Commissioner is able to verify.
2D: For the purposes of subsection (2C)﻿(b), the amount of the consideration must be—
a: calculated for each of the person's taxable periods that fall in the transitional period:
b: for any days in the person's taxable period that fall outside the transitional period, apportioned on a pro rata basis.
2E: If a registered person has supplied services in the transitional period by way of the facilitation of inbound tour operations and tax was paid under this section in relation to the services, the person is entitled to a refund of the amount of tax paid. They must apply for the refund Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009
2F: For the purposes of subsections (2B) and (2C), services that consist of the facilitation of inbound tour operations means the services that a registered person provides in packaging 1 or more domestic tourism products and services in New Zealand and selling them outside New Zealand to a non-resident person. The tourism products and services may include accommodation, meals, transport, and other activities.
3: Despite subsection (2), goods and services are treated as being supplied in New Zealand if the supplier is a non-resident
a: the goods are in New Zealand at the time of the supply and are not distantly taxable goods to which paragraph (ab) applies; or
ab: the goods are distantly taxable goods to which subsection (4E) does not apply; or
b: the services are physically performed in New Zealand by a person who is in New Zealand at the time the services are performed; or
c: the services are remote services supplied to a person resident in New Zealand, other than services that are physically performed in New Zealand by a person who is in New Zealand at the time the services are performed.
4: Despite subsection (3), if a supplier who is a non-resident to which subsection (3)﻿(a) or (b) would apply unless the supplier chooses to treat the supply as made in New Zealand
4B: Despite subsection (2), a supply of goods or services that is treated as not being made in New Zealand by subsections (4) , (4D), or (4E)
a: the goods or services
b: the recipient of the supply—
i: estimates at the time of acquisition that the percentage intended use of the goods or services
ii: determines at the end of an adjustment period that the percentage actual use of the goods or services 95%
bb: for a supply of goods,—
i: the goods are part of a consignment of goods having a value for the purposes of schedule 4
ii: the recipient does not pay the amount of tax levied on the goods to the New Zealand Customs Service or to the supplier; and
c: the supply would be a taxable supply if made in New Zealand by a registered person in the course or furtherance of a taxable activity carried on by the registered person.
4C: An allocation of costs by a non-resident to a resident is treated as being a supply of services that satisfies section 8(4B)﻿(a)
4D: Despite subsection (3), if a non-resident supplier supplies remote services to which subsection (3)﻿(c) would apply but for this subsection to a registered person for the purposes of carrying on the registered person’s taxable activity, the services are treated as being supplied outside New Zealand unless the supplier chooses to treat the supply as made in New Zealand.
4E: Despite subsection (3), if a non-resident is the supplier of distantly taxable goods, to which subsection (3)﻿(ab) subsection (4F)
4F: Subsection (4E) does not apply to treat goods as being supplied outside New Zealand if—
a: the non-resident supplier chooses that this subsection apply to the supply of the goods; and
b: at the time of the election, the non-resident supplier reasonably expects that more than 50% of the value of the supplies made by the non-resident supplier to persons in New Zealand during the period of 12 months from the election will be made to persons who are not registered persons; and
c: the value of the supply is less than or equal to $1,000.
5: Subsections (3), (4), (4B), and (4D)
6: Despite subsection (2), telecommunications services are treated as being supplied in New Zealand if the supplier is a non-resident
7: Subsection (6) does not apply to—
a: supplies made between telecommunications suppliers:
b: inbound mobile roaming services supplied to a non-resident person.
8: Despite subsection (6) and section 8A a non-resident
8B: Despite subsection (6) but subject to subsection (8), a supply of telecommunications services is treated as being supplied in New Zealand if—
a: the services are outbound mobile roaming services supplied by a non–resident; and
b: the recipient of the supply is outside New Zealand when the services are supplied.
9: For the purposes of subsection (6) and section 11AB
a: is identified by the supplier of the services as being—
i: the person who controls the commencement of the supply:
ii: the person who pays for the services:
iii: the person who contracts for the supply; and
b: if more than 1 person satisfies paragraph (a), is the person who appears highest on the list in that paragraph. Section 8(1) amended 20 May 2010 section 45(1) Taxation (Budget Measures) Act 2010 Section 8(1) amended 1 July 1989 section 15(1) Finance Act 1989 Section 8(2) amended 25 November 2003 section 146(1) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 8(2) proviso repealed 1 July 2003 section 154 Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 Section 8(2B) inserted 8 December 2009 section 146 Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 Section 8(2C) inserted 8 December 2009 section 146 Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 Section 8(2D) inserted 8 December 2009 section 146 Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 Section 8(2E) inserted 8 December 2009 section 146 Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 Section 8(2E) amended 2 June 2016 section 184 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 8(2F) inserted 8 December 2009 section 146 Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 Section 8(3) added 1 July 2003 section 154 Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 Section 8(3) amended 1 October 2016 section 54(1)﻿(a) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 8(3) amended 25 November 2003 section 146(1) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 8(3)﻿(a) replaced 1 December 2019 section 10(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 8(3)﻿(ab) inserted 1 December 2019 section 10(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 8(3)﻿(b) amended 1 October 2016 section 54(1)﻿(b) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 8(3)﻿(c) inserted 1 October 2016 section 54(1)﻿(c) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 8(4) added 1 July 2003 section 154 Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 Section 8(4) amended 1 April 2023 section 126(2) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 8(4) amended 1 October 2016 section 54(2) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 8(4) amended 25 November 2003 section 146(1) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 8(4B) inserted 1 January 2005 section 146(2) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 8(4B) amended 1 December 2019 section 10(2)﻿(a) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 8(4B) amended 1 December 2019 section 10(2)﻿(b) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 8(4B) amended 1 October 2016 section 54(3) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 8(4B)﻿(a) amended 1 December 2019 section 10(3) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 8(4B)﻿(b) substituted 1 April 2011 section 7(1) Taxation (GST and Remedial Matters) Act 2010 Section 8(4B)﻿(b)﻿(i) amended 1 December 2019 section 10(4) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 8(4B)﻿(b)﻿(ii) amended 1 December 2019 section 10(5) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 8(4B)﻿(b)﻿(ii) amended 2 November 2012 section 210 Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 8(4B)﻿(bb) inserted 23 March 2020 section 243(1) section 243(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 8(4C) inserted 1 January 2005 section 146(2) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 8(4D) inserted 1 October 2016 section 54(4) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 8(4E) inserted 1 December 2019 section 10(6) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 8(4F) inserted 1 December 2019 section 10(6) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 8(5) added 1 July 2003 section 154 Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 Section 8(5) amended 1 October 2016 section 54(5) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 8(5) amended 1 January 2005 section 146(3) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 8(6) added 1 July 2003 section 154 Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 Section 8(6) amended 25 November 2003 section 146(4) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 8(7) replaced 1 April 2022 section 183(1) Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 8(8) added 1 July 2003 section 154 Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 Section 8(8) amended 25 November 2003 section 146(5) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 8(8B) inserted 1 April 2022 section 183(2) Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 8(9) substituted 25 November 2003 section 146(6) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003
8A: Certain supplies of telecommunications services
1: Despite section 8(2)
2: Subsection (1) does not apply to supplies made between telecommunications suppliers.
3: If subsection (1) applies, the telecommunications supplier must satisfy subsection (1) for all supplies of telecommunications services made for the type of service or the class of customer.
4: In this section, address Section 8A inserted 1 July 2003 section 155 Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003
8B: Remote services: determining residence
1: Subsection (2) applies to determine—
a: whether a supply is made in New Zealand under section 8(3)﻿(c)
b: for the purposes of sections 10(14B) 11A(1)﻿(j) 60(1AB) 60C 60D
c: for the purposes of section 11A(1)﻿(k) to (m)
2: A supplier must treat the recipient of the supply as a person resident in New Zealand if 2 of the following items are non-contradictory and support the conclusion that the person is resident in New Zealand:
a: the person’s billing address:
b: the internet protocol address of the device used by the person or another geolocation method:
c: the person’s bank details, including the account the person uses for payment or the billing address held by the bank:
d: the mobile country code of the international mobile subscriber identity stored on the subscriber identity module card used by the person:
e: the location of the person’s fixed land line through which the service is supplied to them:
f: other commercially relevant information.
3: For the purposes of subsection (2),—
a: if, in addition to having 2 non-contradictory items from the list in subsection (2) supporting residence in New Zealand, a supplier also has at least 2 non-contradictory items that support residence in a country other than New Zealand, the supplier must choose the evidence that is more reliable to determine a recipient’s residence:
b: the Commissioner may prescribe the use of another method to determine a recipient’s residence, or may agree with the supplier on the use of another method, if a supplier is unable to establish a recipient’s residence by 2 non-contradictory items from the list in subsection (2).
4: In prescribing or agreeing to the use of an alternative method under subsection (3)﻿(b), the Commissioner may take into account the following:
a: the nature of the supply, including, for example,—
i: whether the supply is made in a low-value high-volume digital context:
ii: whether the supply is a single instance or a supply made as part of a continuing relationship between the recipient and the supplier:
b: the availability to the supplier of information about the recipient’s residence.
5: Section 8BB(1B) section 8(3)﻿(c) when section 8(4D) applies sections 11A(1)﻿(j) , 60C 60D
6:
7:
8: Section 8B inserted 1 October 2016 section 55 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 8B heading amended 1 December 2019 section 11(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 8B(1) replaced 1 April 2023 section 127(1) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 8B(5) amended 1 April 2023 section 127(2) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 8B(5) amended 30 March 2017 section 349(2)﻿(a) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 8B(5) amended 30 March 2017 section 349(2)﻿(b) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 8B(6) repealed 1 December 2019 section 11(4) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 8B(7) repealed 1 December 2019 section 11(4) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 8B(8) repealed 1 December 2019 section 11(4) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
8BB: Certain supplies by non-residents: determining whether recipient is registered person
1: This section applies when a non-resident registered person (the supplier recipient
a: distantly taxable goods to which section 8(3)﻿(ab)
b: remote services to which section 8(3)﻿(c)
c: goods and services to which section 8(4)
1B: The supplier must not treat the supply as being made to a registered person for use in the course or furtherance of the registered person’s taxable activity if the recipient does not meet the requirements of this section.
2: A recipient meets the requirements of this section if the recipient notifies the supplier that the recipient is a registered person or provides the supplier with the recipient’s registration number or New Zealand Business Number.
3: The Commissioner may prescribe, as an alternative to the method in subsection (2), a method that a supplier may use to determine whether the supply is made to a registered person for use in the course or furtherance of the registered person’s taxable activity, or may agree with the supplier on the use of another method to determine whether the supply is made to a registered person for use in the course or furtherance of the registered person’s taxable activity.
4: In prescribing or agreeing to the use of an alternative method under subsection (3), the Commissioner may take into account—
a: the nature of the supply, including, for example, whether the supply is of goods and services that are purchased only by a registered person in the course or furtherance of the registered person’s taxable activity:
b: the value of the supply, including, for example, whether the supply is of a value that would be expected to be received only by a registered person in the course or furtherance of the registered person’s taxable activity:
c: the terms and conditions related to the provision of the goods and services, including, for example, whether the supply is of goods and services that may be leased, licensed, or otherwise made available, for use by a registered person in the course or furtherance of the registered person’s taxable activity. Section 8BB inserted 1 December 2019 section 12 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 8BB(1) replaced 1 April 2023 section 128 Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 8BB(1B) inserted 1 April 2023 section 128 Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023
8BC: Optional use of place of supply rules for certain suppliers required to determine residence or registration status
1: This section applies to a supplier in relation to a supply of goods and services made by them as described in section 8B(1)﻿(c) 8BB(1)﻿(c)
2: Despite sections 8B(2) 8BB(1B)
a: a recipient’s residence for the purposes of a supply of remote services; or
b: a recipient’s registration status for the purposes of a supply of distantly taxable goods, remote services, or listed services.
3: For the purposes of subsection (2), the other items of commercial information may include information obtained from the supplier’s existing systems and processes that are used to collect information about the supplies made and the recipients of those supplies. Section 8BC inserted 1 April 2023 section 129 Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023
9: Time of supply
1: Subject to this Act, for the purposes of this Act a supply of goods and services shall be deemed to take place at the earlier of the time an invoice is issued by the supplier or the recipient
2: Notwithstanding anything in subsection (1), a supply of goods and services shall be deemed to take place—
a: if the supply is an associated supply,—
i: in the case of a supply of goods which are to be removed, at the time of the removal; and
ii: in the case of a supply of goods which are not to be removed, at the time when they are made available to the recipient; and
iii: in the case of a supply of services, at the time the services are performed, unless subparagraph (iv) applies; and
iv: in the case of a supply of services that is treated by section 8(4B) provided that this paragraph shall not apply in any case where an invoice is issued, or any payment is made, in respect of that supply, on or before the last day for furnishing the return in relation to the taxable period during which, but for this proviso, that supply would have been made:
b: where that supply is a supply to which section 5(4) section 36M
c: where that supply is a supply to which section 5(5) provided that in any case in which a supply of services is deemed to take place pursuant to the proviso to that subsection, that supply of services shall be deemed to take place at the time that the layby sale is cancelled pursuant to section 36F 36G
d: where that supply is deemed to be made pursuant to section 5(8)
e: if the supply is made under section 5(10) or (10B)
i: for an amount of money paid by a person to participate in gambling (including a New Zealand lottery), on the date on which the first drawing or determination of a result commences, but this subparagraph does not apply to an instant game that is a New Zealand lottery gambling section 4(1)
ii: for an amount of money paid by a person to participate in a prize competition on the date on which the first drawing or determination of the prize competition commences:
f: where the supply is for a consideration in money received by the supplier by means of any machine, meter, or other device operated by a coin or token, at the time any such coin or token is taken from that machine, meter, or other device by or on behalf of the supplier:
g: if the supply is treated as having been made under section 5(11B) takes place:
h: if section 8(4B)﻿(b)﻿(ii) last day 95%
2A: Despite subsection (1), a supply to which section 5(11G)
2B: If section 5(11H)
3: Notwithstanding anything in subsection (1) or subsection (2),—
a: where goods are supplied under an agreement to hire, or where services are supplied under any agreement or enactment or the enactment
aa: where and to the extent that—
i: goods are supplied progressively or periodically pursuant to any agreement or enactment which provides for the consideration for that supply to be paid in instalments or periodically and in relation to the periodic or progressive supply of those goods; or
ii: goods and services supplied directly in the construction, major reconstruction, manufacture, or extension of a building or an those goods and services shall be deemed to be successively supplied, and each such successive supply shall be deemed to take place whenever any payment in respect of that supply becomes due, is received, or any invoice relating only to that payment is issued, whichever is the earlier:
b: where goods and services
c: for the purposes of this subsection, the term agreement to hire
i: an agreement under which the property in the goods passes to the bailee or which expressly contemplates that the property in the goods will pass to the bailee
ii: a hire purchase agreement
4:
5:
6: Subject to subsections (2)﻿(a) and (3), where the whole of the consideration (the price
a: a payment of the part of the price becomes due or is received:
b: the supplier or recipient issues an invoice for the part of the price.
7: Notwithstanding anything in this section, where any public authority is deemed to have supplied goods and services pursuant to section 5(6)
8: Despite subsection (1), if a local authority makes a supply to which section 5(7)﻿(a)
a: the date on which an instalment notice is issued if the instalment notice requires payment of an instalment by a particular date:
b: the date on which payment is required by the instalment notice:
c: the date on which payment is received.
9: Despite subsection (1), an operator of a loyalty programme who meets the requirements of section 11C section 5(11D) to (11H)
10: For the purposes of subsection (9), in a case where the operator is not resident in New Zealand but the supply of services is treated under section 8(4B) section 11C
a: the operator meets the first and second requirements set out in section 11C
b: the purchaser meets the third requirement imposed on the operator under section 11C Section 9(1) amended 24 March 1988 Goods and Services Tax Amendment Act 1988 Section 9(2)﻿(a) amended 3 April 2006 section 286 Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 9(2)﻿(a)﻿(iii) amended 1 January 2005 section 147 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 9(2)﻿(a)﻿(iv) added 1 January 2005 section 147 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 9(2)﻿(b) amended 17 June 2014 section 41(2) Fair Trading Amendment Act 2013 Section 9(2)﻿(c) proviso amended 17 June 2014 section 41(2) Fair Trading Amendment Act 2013 Section 9(2)﻿(d) substituted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 9(2)﻿(e) replaced 17 July 2013 section 122 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 9(2)﻿(e) amended 1 October 2016 section 56 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 9(2)﻿(g) substituted 1 July 2004 section 374 Gambling Act 2003 Section 9(2)﻿(g) amended 1 April 2011 section 8(1) Taxation (GST and Remedial Matters) Act 2010 Section 9(2)﻿(h) added 1 April 2011 section 8(1) Taxation (GST and Remedial Matters) Act 2010 Section 9(2)﻿(h) amended 2 November 2012 section 211(a) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 9(2)﻿(h) amended 2 November 2012 section 211(b) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 9(2A) inserted 10 October 2000 section 88(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 9(2B) inserted 10 October 2000 section 88(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 9(3)﻿(a) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 9(3)﻿(a) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 9(3)﻿(aa) inserted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 9(3)﻿(aa)﻿(ii) amended 19 December 1989 Goods and Services Tax Amendment Act (No 2) 1989 Section 9(3)﻿(b) amended 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003 Section 9(3)﻿(b) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 9(3)﻿(c)﻿(i) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 9(3)﻿(c)﻿(ii) amended 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003 Section 9(4) repealed 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 9(5) repealed 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 9(6) replaced 30 March 2017 section 350(1) section 350(2) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 9(7) added 26 July 1989 section 86(1) Public Finance Act 1989 Section 9(7) amended 10 April 1995 Goods and Services Tax Amendment Act 1995 Section 9(8) added 10 October 2000 section 88(3) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 9(9) added 6 October 2009 section 707 Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 Section 9(10) added 6 October 2009 section 707 Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
10: Value of supply of goods and services
1: For the purposes of this Act the following provisions of this section shall apply for determining the value of any supply of goods and services.
2: Subject to this section, the value of a supply of goods and services shall be such amount as, with the addition of the tax charged, is equal to the aggregate of,—
a: to the extent that the consideration for the supply is consideration in money, the amount of the money:
b: to the extent that the consideration for the supply is not consideration in money,—
i: the open market value of that consideration, if subparagraph (ii) does not apply; or
ii: the value of the consideration agreed by the supplier and the recipient, if subsection (2B) applies.
2B: The value of consideration for a supply of goods and services is determined under subsection (2)﻿(b)﻿(ii) if—
a: the supply is of a right to receive a specified number of emissions units at a future date; and
b: the supplier and recipient are not associated persons; and
c: each of the supplier and recipient, in the transaction of which the supply is a part,—
i: makes a taxable supply; and
ii: acquires a taxable supply for use in making taxable supplies.
3: Subject to subsections (3A), (3AB),
a: the supply is made by a person for no consideration or for a consideration that is less than the open market value of the supply; and
b: the supply is an associated supply; and
c: the supply is not a fringe benefit that the supplier has, or is deemed to have, provided or granted under the FBT rules of the Income Tax Act 2007
3A: Subsection (3) does not apply to a supply to the extent
a:
b: the recipient is entitled to make a deduction under section 20(3)
i: the amount of the deduction were determined under section 3A(3)﻿(e)
ii: there were consideration for the supply:
iii: the supplier were a registered person who had complied with the requirements of the Act; and
c: the supply is not a supply of financial services to which subsection (3B) applies.
3AB: Subsection (3) does not apply to a supply of goods and services if the recipient—
a: acquires the supply for no consideration; and
b: from the time of the supply, applies the goods and services for the purpose of making taxable supplies.
3B: If a supply of financial services is charged with tax at a rate of 0% under section 11A(1)﻿(q) or (r) section 20C
a: subsection (3) does not apply to the supply; and
b: the consideration for the supply is treated as being the open market value of the supply if—
i: the supply is made by a person for consideration that is more than the open market value of the supply; and
ii: the supplier and the recipient are associated persons.
3C: Subsection (3) does not apply to a supply of services that is treated by section 8(4B) , or that is a supply of remote services for which the recipient is required to account for output tax under section 20(3JC)
a: the amount of the consideration for the supply is a deduction under the Income Tax Act 2007
b: the amount of the consideration for the supply would have been a deduction under the Income Tax Act 2007
3D: Subsection (3) does not apply to a supply of services that is treated by section 8(4B) , or that is a supply of remote services for which the recipient is required to account for output tax under section 20(3JC)
a: the recipient of the supply is a branch or division that is treated by section 56B
b: the amount of the consideration for the supply would have been a deduction under the Income Tax Act 2007
i: the branch or division were entitled to deductions under the Income Tax Act 2007
ii: the branch or division had given any consideration for the supply.
3E: The value of a supply of goods or services section 8(4B)
4: Where any supply of goods is a supply which would, but for section 11(3) or (3C) provided that in any case where the deduction of input tax referred to in that proviso has been made by any other person (where that supplier and that other person are associated persons), the consideration in money for that supply shall be deemed to be an amount equal to provided further that for the purposes of this subsection, the purchase price of any goods shall not be reduced by any amount of input tax deducted by the supplier or, as the case may be, any other person where the supplier and that other person are associated persons, pursuant to section 20(3)
5: Despite subsection (2), if a supply of goods and services is made under a credit contract, the consideration in money for the supply is treated as being the higher of the cash price of the goods and services and the price the supplier would have charged the purchaser if the purchaser had paid in full at the time the credit contract was entered into.
5A: In subsection (5),— cash price section 5 credit contract section 3 of the Credit Contracts Act 1981
5B: Despite subsection (5A), a person who is a party to an arrangement that is a credit contract but is not a credit contract under section 7
5C: Despite subsection (5A), a person who is a party to an arrangement that is not a credit contract but is a credit contract under section 7
6: Where and to the extent that any supply of goods and services consists of the supply, to any individual, of domestic goods and services in a commercial dwelling, the value attributable to that part of that supply of domestic goods and services that is for a period in excess of 4 weeks shall be deemed to be reduced to an amount equal to 60% of the amount that would, if that part of that supply were chargeable with tax at the rate of 9 provided that to the extent that any supply is a supply of domestic goods and services, and where that commercial dwelling is a residential establishment, and where the supplier and the recipient have agreed that that supply shall be for a period of or in excess of 4 weeks, or for a number of periods which in the aggregate will exceed 4 weeks, the value attributable to that supply of domestic goods and services shall, from the commencement of that supply, be deemed to be reduced to an amount equal to 60% of the amount that would, if that supply were chargeable with tax at the rate of 9
7: If goods and services are treated by section 21I(1)
a: an amount equal to the taxable value of the fringe benefit as determined by sections CX 20 RD 54 to RD 57
b: nil, if the person would not have a deduction under section 20(3)
7A: If goods and services are deemed to be supplied by a person under section 5(3) or (3B) or section 5(16C)﻿(b) value of the supply. A supply of common property by a unit title body corporate has a zero value
7B: If goods and services are treated as supplied by a person under section 5(23B)
7C: Where a redeliverer makes a supply of distantly taxable goods to a recipient under section 60E
7D: Where an operator of a marketplace makes a supply of remote services or distantly taxable goods under section 60C 60D
7E: Where a person makes a supply of services to the recipient of a supply of goods that include distantly taxable goods, and the supply of services includes services (the related services
a: the consideration for the supply of the related services is determined by reference to the items included in the supply of distantly taxable goods; and
b: the supply of services is made or arranged or facilitated by the supplier or underlying supplier of the distantly taxable goods; and
c: the supply of related services is directly in connection with the distantly taxable goods or is of insurance of the goods; and
d: the supply of related services would be chargeable with tax at the rate of 0% in the absence of this subsection; and
e: the supply of related services and the supply of distantly taxable goods do not form a single supply.
8: Where goods and services are deemed to be supplied by a person under section 5(3) and the goods and services were acquired before 1 October 1986
a: the cost of those goods and services to the supplier, including any input tax deduction claimed
b: the open market value of that supply.
9: Where a supply of services is deemed to be made under the proviso to section 5(5)
10: Notwithstanding anything in this section, where goods and services are, or are deemed to be, supplied by any public authority pursuant to section 5(6)
11: Notwithstanding anything in this section, where goods and services are, or are deemed to be, supplied to any person by any local authority pursuant to section 5(7)
12: The consideration in money for the supply of services for—
a: racing betting or sports betting is treated as the amount received by TAB NZ or its agents, plus the net return of bets laid off by TAB NZ
b: equalisator betting is treated as the amount received by a racing club.
12A:
13: In subsection (12), equalisator betting TAB NZ racing club racing betting sports betting section 5(1)
14: If a supply of services is treated as having been made under section 5(10) amounts received − prizes where— (a) amounts received
i: for gambling, by the person, society, licensed promoter, or organiser who under the Gambling Act 2003
ii: for a prize competition, by the person who conducts the prize competition: (b) prizes supply, reduced by the total amount of input tax for supplies for which the prizes are treated as being consideration
14B: If a supply of services is treated as having been made under section 5(10B) amounts received from residents − prizes paid to residents.
14C: In the formula in subsection (14B),—
a: amounts received from residents
b: prizes paid to residents
(14D): If amounts of consideration calculated under subsection (14B) for all of the non-resident’s supplies of gambling or prize competitions for a taxable period are added together (the total consideration
14E: If, after the use of the negative amount described in subsection (14D), an excess negative amount remains, the excess amount may be used to reduce a positive amount of total consideration in the immediately following taxable period.
14F: Subsection (14E) continues to apply until the excess amount is extinguished.
15: For the purposes of subsection (14), the terms gambling New Zealand lottery section 4(1)
15A: If a supply is treated as having been made under section 5(11B)
a: as the amount of money (including cheques not collected) a person pays to the casino to purchase a chip or otherwise to participate in gambling played or conducted at a casino venue; or
b: as commission for participation in the gambling.
15B: For the purposes of subsection (15A), the terms casino venue chip gambling section 4(1)
15C: If a non-resident makes a supply of services to a resident who is a member of the same group of companies under section IA 6 section 56B sections 5B 8(4B) the supply, or section 20(3JC)
a: the amount of the consideration for the supply that represents salary or wages paid to an employee of—
i: the non-resident:
ii: a company that is in a wholly-owned group with the non-resident under section IA 6
b: the amount of the consideration for the supply that represents interest incurred by—
i: the non-resident:
ii: a company that is in a wholly-owned group with the non-resident under section IA 6
16:
16A:
17:
17A:
18: Where a taxable supply is not the only matter to which a consideration relates, the supply shall be deemed to be for such part of the consideration as is properly attributable to it.
19: Subject to the foregoing provisions of this section where any supply is made for no consideration, the value of that supply shall be nil.
20: Section 10(2)﻿(b) substituted 29 August 2011 section 237(1) Taxation (Tax Administration and Remedial Matters) Act 2011 Section 10(2B) inserted 29 August 2011 section 237(2) Taxation (Tax Administration and Remedial Matters) Act 2011 Section 10(3) substituted 10 October 2000 section 89(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 10(3) amended 3 April 2006 section 287(1) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 10(3) amended 1 January 2005 section 148(1) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 10(3)﻿(b) substituted 3 April 2006 section 287(2) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 10(3)﻿(c) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 10(3A) substituted 1 January 2005 section 148(2) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 10(3A) amended 18 March 2019 section 299(1) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 10(3A)﻿(a) repealed 18 March 2019 section 299(2) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 10(3AB) inserted 3 April 2006 section 287(3) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 10(3B) inserted 1 January 2005 section 148(2) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 10(3C) inserted 1 January 2005 section 148(2) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 10(3C) amended 18 March 2019 section 299(3) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 10(3C)﻿(a) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 10(3C)﻿(b) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 10(3D) inserted 1 January 2005 section 148(2) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 10(3D) amended 18 March 2019 section 299(4) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 10(3D)﻿(b) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 10(3D)﻿(b)﻿(i) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 10(3E) inserted 1 January 2005 section 148(2) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 10(3E) amended 1 December 2019 section 13(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 10(4) substituted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 10(4) amended 6 October 2009 section 708 Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 Section 10(4) first proviso amended 1 April 1993 Goods and Services Tax Amendment Act 1993 Section 10(5) substituted 10 October 2000 section 89(4) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 10(5A) substituted 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003 Section 10(5A) credit contract substituted 3 April 2006 section 287(4) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 10(5B) inserted 3 April 2006 section 287(5) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 10(5C) inserted 3 April 2006 section 287(5) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 10(6) substituted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 10(6) amended 20 May 2010 section 46(1) Taxation (Budget Measures) Act 2010 Section 10(6) amended 1 July 1989 section 16(1) Finance Act 1989 Section 10(6) proviso amended 20 May 2010 section 46(1) Taxation (Budget Measures) Act 2010 Section 10(6) proviso amended 1 July 1989 section 16(1) Finance Act 1989 Section 10(7) substituted 18 December 2006 section 213(1) Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 Section 10(7)﻿(a) amended 1 April 2008 section 272(2) Taxation (Business Taxation and Remedial Matters) Act 2007 Section 10(7)﻿(a) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 10(7A) inserted 10 October 2000 section 89(6) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 10(7A) amended 1 April 2023 section 132(2) section 132(6) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 10(7A) amended 24 February 2016 section 275(1) Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 Section 10(7A) amended 24 February 2016 section 275(2) Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 Section 10(7A) amended 1 April 2014 section 124 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 10(7B) inserted 1 April 2011 section 9(1) Taxation (GST and Remedial Matters) Act 2010 Section 10(7B) amended 1 April 2023 section 132(3) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 10(7C) inserted 1 December 2019 section 13(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 10(7D) inserted 1 December 2019 section 13(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 10(7E) inserted 1 December 2019 section 13(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 10(8) amended 1 April 2011 section 9(2) Taxation (GST and Remedial Matters) Act 2010 Section 10(8) amended 10 October 2000 section 89(7) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 10(8)﻿(a) amended 12 December 1995 section 4(1) Goods and Services Tax Amendment Act (No 2) 1995 Section 10(8)﻿(a) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 10(10) substituted 10 April 1995 Goods and Services Tax Amendment Act 1995 Section 10(12) substituted 1 August 2003 section 69(1) Racing Act 2003 Section 10(12)﻿(a) amended 1 August 2020 section 129 Racing Industry Act 2020 Section 10(12A) repealed 1 August 2003 section 69(1) Racing Act 2003 Section 10(13) substituted 1 August 2003 section 69(1) Racing Act 2003 Section 10(13) amended 1 August 2020 section 129 Racing Industry Act 2020 Section 10(14) replaced 17 July 2013 section 123 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 10(14)﻿(b) amended 30 March 2017 section 351 Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 10(14B) inserted 1 October 2016 section 57(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 10(14C) inserted 1 October 2016 section 57(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 10(14D) inserted 1 October 2016 section 57(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 10(14E) inserted 1 October 2016 section 57(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 10(14F) inserted 1 October 2016 section 57(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 10(15) substituted 1 July 2004 section 374 Gambling Act 2003 Section 10(15A) substituted 1 July 2004 section 374 Gambling Act 2003 Section 10(15B) substituted 1 July 2004 section 374 Gambling Act 2003 Section 10(15C) inserted 1 January 2005 section 148(3) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 10(15C) amended 1 October 2016 section 57(2) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 10(15C) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 10(15C)﻿(a)﻿(ii) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 10(15C)﻿(b)﻿(ii) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 10(16) repealed 10 October 2000 section 89(9) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 10(16A) repealed 10 October 2000 section 89(9) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 10(17) repealed 10 October 2000 section 89(9) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 10(17A) repealed 10 October 2000 section 89(9) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 10(20) repealed 10 October 2000 section 89(9) Taxation (GST and Miscellaneous Provisions) Act 2000
10B: Estimating value of goods in supply for treatment as distantly taxable goods
1: The value of an item of goods is determined under this section for the purposes of determining, when a supply of the goods is made, whether the goods are distantly taxable goods.
2: The value of an item of goods under this section is the consideration for the supply of the item reduced by the total amount included in that consideration for—
a: the cost of transport and insurance charges,—
i: for goods that are imported into New Zealand, for the period beginning when the item leaves the country or territory from which the goods are supplied and ending when the item is delivered in New Zealand:
ii: for goods that are not imported into New Zealand, for the period beginning when the item leaves its place of origin and ending when the item is delivered in New Zealand:
b: the amount of tax that would be chargeable on the supply of the item under section 8(1)
c: duty payable on the item under the Customs and Excise Act 2018
3: The supplier of an item of goods may use a reasonable estimate of the amount referred to in subsection (2), based on the information available to the supplier at the time of the supply. Section 10B inserted 1 December 2019 section 14 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 10B(2)﻿(b) replaced 23 March 2020 section 244 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
10C: Election by supplier that supplies of higher-value goods be supplies of distantly taxable goods
1: A person (the electing supplier section 60C 60D 60E initial period
a: the Commissioner has not, before the election, cancelled under subsection (5)﻿(b) an election under this section by the electing supplier; and
b: the electing supplier notifies the Commissioner of the election before the initial period; and
c: the electing supplier meets the requirements of subsection (2).
2: An electing supplier may make an election under subsection (1) if—
a: at the time of the election, the electing supplier considers
b: for an electing supplier who does not meet the requirements of paragraph (a), the Commissioner considers that giving effect to an election by the electing supplier
i: whether the electing supplier and associated persons have a good history of previous compliance with the requirements of taxation laws and the taxation laws of countries and territories outside New Zealand; and
ii: the total value of items of goods, each having an estimated customs value greater than the entry value threshold, that the electing supplier sells in a period and are delivered at places in New Zealand; and
iii: other considerations that the Commissioner considers to be relevant.
3: An election under subsection (1) meeting the requirements of subsection (2)
a: goods that meet the requirements of section 4B(1)﻿(a) to (d)
b: the initial period; and
c: later taxable periods beginning before a cancellation of the election under subsection (5).
4: For a taxable period for which the election is effective under subsection (3), a supply by the electing supplier, after the election, of an item of goods having an estimated customs value greater than the entry value threshold is a supply of distantly taxable goods if the goods are delivered at a place in New Zealand.
5: The Commissioner may cancel an election from a date after which the election would otherwise be effective—
a: by notifying the electing supplier of the date on which the election ends, if the electing supplier requests the cancellation:
b: if paragraph (a) does not apply, by—
i: notifying the electing supplier of the date of the proposed cancellation and the reasons for the proposed cancellation; and
ii: considering any arguments against the proposed cancellation that are provided by the electing supplier within 30 days from the date of notification, or within a shorter or longer period if the Commissioner considers that the period is appropriate in the circumstances; and
iii: notifying the electing supplier of the date on which the election is cancelled. Section 10C inserted 1 December 2019 section 14 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 10C(1)﻿(b) amended 23 March 2020 section 245(1) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 10C(1)﻿(c) inserted 23 March 2020 section 245(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 10C(2) amended 23 March 2020 section 245(3) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 10C(2)﻿(a) amended 23 March 2020 section 245(4) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 10C(2)﻿(b) amended 23 March 2020 section 245(5) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 10C(3) amended 23 March 2020 section 245(6) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
11: Zero-rating of goods
1: A supply of goods that is chargeable with tax under section 8
a: the supplier has entered the goods for export under the Customs and Excise Act 2018
b: the goods have been deemed to be entered for export under the Customs and Excise Act 2018
c: the supplier has satisfied the Commissioner that the goods have been exported by the supplier to a place outside New Zealand; or
d: subject to subsection (4), the supplier will enter the goods for export under the Customs and Excise Act 2018
e: subject to subsection (4), the goods will be deemed to be entered for export under the Customs and Excise Act 2018
eb: subject to subsection (4), the goods supplied—
i: are supplied to a recipient; and
ii: have been entered for export under the Customs and Excise Act 2018
iii: are exported by the recipient; and
iv: are not intended by the recipient for later importation into New Zealand for use other than in making taxable supplies or exempt supplies, with the absence of such an intention being confirmed by the recipient in a document retained by the supplier; and
v: are not used or altered by the recipient before being exported, except to the extent necessary to prepare the goods for export; and
vi: leave New Zealand under an arrangement agreed by the supplier and the recipient at or before the time of the supply; and
vii: do not leave New Zealand in the possession of a passenger or crew member of an aircraft or ship; or
f: goods that would otherwise have been exported are destroyed, die or cease to exist in circumstances beyond the control of both the supplier and the recipient
g: subject to subsection (6), the goods are supplied by a supplier who is licensed under section 59
i: the supplier has been licensed by the chief executive of the New Zealand Customs Service to operate a sealed bag system; and
ii: the goods are supplied in accordance with the sealed bag system; and
iii: the goods are entered, or are deemed to be entered, for export under the Customs and Excise Act 2018
h: the goods and services are supplied—
i: by a supplier who is licensed under section 59
ii: within an area licensed under section 59
iii: to either—
A: an inbound air traveller; or
B: an outbound air traveller who picks up the goods upon returning to New Zealand; or
i: subject to subsection (7), the supply of a boat or an aircraft by way of sale to a recipient who exports the boat or aircraft under its own power to a place outside New Zealand; or
j: the goods are not situated in New Zealand at the time of supply and—
i: the goods are not situated in New Zealand at the time of delivery to the recipient:
ii: the goods are not distantly taxable goods and section 12
jb: the supply is of distantly taxable goods to which section 60(1C)﻿(a)
k: the goods have been supplied in the course of repairing, renovating, modifying or treating goods to which paragraph (i) or section 11A(1)﻿(h) or (i)
i: are wrought into, affixed to, attached to or otherwise form part of those other goods; or
ii: are consumable goods that become unusable or worthless as a direct result of being used in the repair, renovation, modification or treatment process; or
ka: the goods are supplied for use on, or the use of, a pleasure craft, being a temporary import within the meaning of section 136
l: the goods supplied are consumable stores intended for use on—
i: an aircraft on a flight, or going, to a destination outside New Zealand; or
ii: a fishing ship outside, or going outside, New Zealand fisheries waters; or
iib: a ship, other than a pleasure craft, carrying consumable stores to a foreign-going ship or to a fishing ship that meets the requirements in subparagraph (ii); or
iii: a foreign-going ship; or
iv: a pleasure craft that is a temporary import within the meaning of section 136
m: the supply to a registered person of a taxable activity, or part of a taxable activity, that is a going concern at the time of the supply, if—
i: the supplier and the recipient agree that the supply is the supply of a going concern, and their agreement is recorded in a document; and
ii: the supplier and the recipient intend that the supply is of a taxable activity, or part of a taxable activity, that is capable of being carried on as a going concern by the recipient; or
mb: the supply wholly or partly consists of land, being a supply—
i: made by a registered person to another registered person who acquires the goods with the intention of using them for making taxable supplies; and
ii: that is not a supply of land intended to be used as a principal place of residence of the recipient of the supply or a person associated with them under section 2A(1)﻿(c)
n: the supply of new fine metal, being the first supply of the new fine metal after its refining, by the refiner to a dealer in fine metal, for the purpose of supplying the fine metal for use as an investment item; or
o: the goods are supplied to or by the Crown as consideration for a supply—
i: for which there is no payment of a price; and
ii: that is chargeable at the rate of 0% under section 11A(1)﻿(s) or (t) ; or
oa: the goods are goods referred to in section 137
p: the goods are—
i: jigs, patterns, templates, dies, punches, and similar machine tools to be used in New Zealand solely to manufacture goods that will be for export from New Zealand; and
ii: supplied to a recipient who is a non-resident, and not a registered person
2: For the purpose of subsection (1)﻿(n), if a person is both a refiner of and a dealer in fine metal, the new fine metal is treated as having been supplied to the dealer at a time immediately before the making of an exempt supply of the new fine metal.
3: Subsection (1)﻿(a) to (1)﻿(l) do not apply to a supply of goods by a registered person if—
a: the registered person, or another person associated with the registered person, has deducted, under section 20(3) section 3A(1)﻿(c)
b: the goods have been or will be reimported into New Zealand by the supplier.
3B: Subsection (3)﻿(a) does not apply to a supply of goods if the recipient gives the registered person at or before the time of the supply an undertaking , and records the undertaking in a document,
3C: Despite subsection (3B), a registered person is treated as having supplied goods in the course or furtherance of a taxable activity and must be charged with tax at the rate specified in section 8
a: the supply of the goods by the registered person was charged with tax under subsection (1)﻿(a) to (l); and
b: the goods are imported into New Zealand; and
c: the goods are reacquired by the registered person in substantially the same condition as the condition the goods were in when the supply was charged with tax under subsection (1)﻿(a) to (l); and
d: the registered person deducted under section 20(3) section 3A(1)﻿(c)
3D: Subsection (3C)—
a: applies at the time the goods are reacquired by the registered person:
b: does not apply if tax is paid under section 12
4: If subsection (1)﻿(d), (e), or (eb) applies and the person required to export the goods does not do so section 8 subsection (1)﻿(d), (e), and (eb)
5: The Commissioner may extend the 28-day period before a supply of goods is charged with tax at the rate specified in section 8
a: circumstances beyond the control of the supplier and the recipient have prevented, or will prevent, the export of the goods within 28 days beginning on the day of the time of supply; or
b: due to the nature of the supply, it is not practicable for the supplier to export the goods, or a class of the goods, within 28 days beginning on the day of the time of supply.
6: If subsection (1)﻿(g) applies and the goods cannot be evidenced, as specified by the chief executive of the New Zealand Customs Service in accordance with the sealed bag system, as being exported within 28 days beginning on the day of the time of supply, despite subsection (1)﻿(g), the supply must be charged with tax at the rate specified in section 8
7: Subsection (1)﻿(i) applies to the supply of a boat or an aircraft, if—
a: the boat or aircraft is exported within 60 days beginning on the date on which the recipient or the recipient's agent takes physical possession of it, or within a longer period as the Commissioner may allow under subsection (8); and
b: the vendor or the purchaser provides the Commissioner with such documentation and undertakings as the Commissioner may require in relation to—
i: records of the sale of the supply; and
ii: limitations on dealings in and the uses to which the boat or aircraft will be put before export; and
iii: the proposed and actual date of export.
8: The Commissioner may extend the 60-day period if the Commissioner is satisfied, upon the written application of the supplier, that the export of the boat or aircraft within the period is or has been prevented by circumstances that are beyond the control of the supplier and the recipient or that relate to supplies to which subsection (1)﻿(k) or section 11A(1)﻿(ib)
8B: Whether a supply of goods is zero-rated under subsection (1)﻿(mb) is determined at the time of settlement of the transaction relating to the supply.
8C: Despite subsections (1)﻿(mb) and (8B), a supplier may choose to apply the provisions of this Act applying before the changes made by the Taxation (GST and Remedial Matters) Act 2010 on or after that date
8D: For the purposes of the zero-rating of land rules,—
a: a supply that wholly or partly consists of , grant,
ab: a supply that wholly or partly consists of
b: a supply that is wholly or partly of an interest in land that meets the requirements of subsection (1)﻿(mb) that is made under a lease agreement of at least 1 year is only a supply under that subsection to the extent to which there is a lump sum payment, that is not a regular payment, of more than 25% of the total consideration specified under the agreement:
c: a supply by a person who is the lessee under a lease agreement is a supply under subsection (1)﻿(mb), despite paragraph (b), if—
i: the supply is to a person who is not the lessor supplying an interest in land under the lease agreement to the lessee; and
ii: the supply is made under an arrangement that wholly or partly consists of , or the lessor’s cancellation of the supply of the interest in land to the lessee,
iii: the supplies of the interest in land under the lease agreements meet the requirements set out in subsection (1)﻿(mb):
d: a registered person who is a non-profit body that is resident in New Zealand and acquires goods is treated, to the extent to which the person acquires the goods with an intention of using them other than for making exempt supplies, as acquiring the goods with the intention of using them in the course or furtherance of the taxable activity of the registered person, except if the registered person uses the goods solely in the course or furtherance of an activity for which the registered person makes an election under section 20(3KB)
9: For the purpose of this section— aircraft section 2 consumable stores
a: goods that passengers and crew on board an aircraft or a ship have available to consume
b: goods necessary to operate or maintain an aircraft or a ship, including fuel and lubricants but excluding spare parts and equipment fishing ship section 2 foreign-going ship lump sum payment New Zealand fisheries waters section 2 pleasure craft section 2 sealed bag system
a: is licensed to operate an export warehouse; and
b: may, with the authorisation of the chief executive of the New Zealand Customs Service, and subject to any conditions that the chief executive may specify, supply goods in a sealed bag to individuals intending to travel overseas within 5 days beginning on the day of the time of supply; and
c: must provide evidence that the goods have been exported from New Zealand within 5 days beginning on the day of the time of supply, and if conditions have been specified by the chief executive of the New Zealand Customs Service, in accordance with those conditions ship section 2 Section 11 substituted 10 October 2000 section 90(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 11(1)﻿(a) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 11(1)﻿(b) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 11(1)﻿(d) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 11(1)﻿(e) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 11(1)﻿(eb) inserted 19 December 2007 section 273(1) Taxation (Business Taxation and Remedial Matters) Act 2007 Section 11(1)﻿(eb)﻿(i) replaced 30 March 2022 section 10 Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 11(1)﻿(eb)﻿(ii) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 11(1)﻿(f) amended 27 March 2001 section 63(1) Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 Section 11(1)﻿(g) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 11(1)﻿(g)﻿(iii) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 11(1)﻿(h)﻿(i) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 11(1)﻿(h)﻿(ii) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 11(1)﻿(j) substituted 3 April 2006 section 288(1) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 11(1)﻿(j)﻿(ii) amended 1 December 2019 section 15(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 11(1)﻿(jb) inserted 1 December 2019 section 15(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 11(1)﻿(k) amended 30 March 2017 section 352(1) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 11(1)﻿(ka) inserted 24 October 2001 section 240(1) Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 Section 11(1)﻿(ka) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 11(1)﻿(l) substituted 24 October 2001 section 240(2) Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 Section 11(1)﻿(l) amended 19 December 2007 section 273(2) Taxation (Business Taxation and Remedial Matters) Act 2007 Section 11(1)﻿(l)﻿(i) substituted 19 December 2007 section 273(2) Taxation (Business Taxation and Remedial Matters) Act 2007 Section 11(1)﻿(l)﻿(ii) substituted 19 December 2007 section 273(2) Taxation (Business Taxation and Remedial Matters) Act 2007 Section 11(1)﻿(l)﻿(iib) inserted 19 December 2007 section 273(2) Taxation (Business Taxation and Remedial Matters) Act 2007 Section 11(1)﻿(l)﻿(iv) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 11(1)﻿(m)﻿(i) replaced 2 June 2016 section 185(1) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 11(1)﻿(mb) inserted 1 April 2011 section 10(1) Taxation (GST and Remedial Matters) Act 2010 Section 11(1)﻿(n) amended 1 January 2009 section 79(1) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 11(1)﻿(o) substituted 21 December 2010 section 10(2) Taxation (GST and Remedial Matters) Act 2010 Section 11(1)﻿(o)﻿(ii) amended 1 April 2014 section 125 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 11(1)﻿(oa) inserted 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 11(1)﻿(p) inserted 1 April 2014 section 125 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 11(1)﻿(p)﻿(ii) amended 30 June 2014 section 188(1) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 11(3B) inserted 6 October 2009 section 709 Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 Section 11(3B) amended 2 June 2016 section 185(2) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 11(3C) inserted 6 October 2009 section 709 Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 Section 11(3D) inserted 6 October 2009 section 709 Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 Section 11(4) amended 19 December 2007 section 273(3)﻿(a) Taxation (Business Taxation and Remedial Matters) Act 2007 Section 11(4) amended 19 December 2007 section 273(3)﻿(b) Taxation (Business Taxation and Remedial Matters) Act 2007 Section 11(5) amended 2 June 2016 section 185(3) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 11(8) replaced 30 March 2017 section 352(2) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 11(8B) inserted 1 April 2011 section 10(3) Taxation (GST and Remedial Matters) Act 2010 Section 11(8C) inserted 1 April 2011 section 10(3) Taxation (GST and Remedial Matters) Act 2010 Section 11(8C) amended 29 August 2011 section 238(1) Taxation (Tax Administration and Remedial Matters) Act 2011 Section 11(8D) replaced 30 March 2017 section 352(5) section 352(8) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 11(8D)﻿(a) amended 1 April 2023 section 133(1) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 11(8D)﻿(a) amended 30 March 2021 section 184(1)﻿(a) section 184(5) Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 11(8D)﻿(a) amended 30 March 2021 section 184(1)﻿(b) section 184(5) Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 11(8D)﻿(ab) inserted 30 March 2017 section 352(3) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 11(8D)﻿(ab) amended 30 March 2021 section 184(2) section 184(5) Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 11(8D)﻿(b) replaced 1 April 2023 section 133(2) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 11(8D)﻿(c)﻿(ii) amended 30 March 2021 section 184(4)﻿(a) section 184(5) Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 11(8D)﻿(c)﻿(ii) amended 30 March 2021 section 184(4)﻿(b) section 184(5) Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 11(8D)﻿(c)﻿(iii) amended 30 March 2017 section 352(6) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 11(8D)﻿(d) inserted 30 March 2017 section 352(7) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 11(8D)﻿(d) amended 18 March 2019 section 300 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 11(9) consumable stores inserted 24 October 2001 section 240(3) Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 Section 11(9) consumable stores amended 19 December 2007 section 273(4) Taxation (Business Taxation and Remedial Matters) Act 2007 Section 11(9) foreign-going ship substituted 19 December 2007 section 273(5) Taxation (Business Taxation and Remedial Matters) Act 2007 Section 11(9) lump sum payment inserted 1 April 2023 section 133(3) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 11(9) pleasure craft inserted 24 October 2001 section 240(5) Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 Section 11(9) ship added 24 October 2001 section 240(6) Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001
11A: Zero-rating of services
1: A supply of services that is chargeable with tax under section 8
a: the services, not being ancillary transport activities such as loading, unloading and handling, are the transport of passengers or goods—
i: from a place outside New Zealand to another place outside New Zealand; or
ii: from a place in New Zealand to a place outside New Zealand; or
iii: from a place outside New Zealand to a place in New Zealand; or
b: the services are the transport of passengers from a place in New Zealand to another place in New Zealand to the extent that the transport is by aircraft section 2 international carriage that Act
bb: the services are the transport of passengers from a place in New Zealand to another place in New Zealand by sea as part of an international cruise if either the first place of departure, or the final place of destination, of the cruise is outside New Zealand; or
c: the services, including ancillary transport activities such as loading, unloading and handling, are the transport of goods from a place in New Zealand to another place in New Zealand to the extent that the services are part of a supply of services, relating to the same goods,
cb: the services, including ancillary activities such as loading, unloading, handling and storing, are the transport of household goods from a place in New Zealand to another place in New Zealand, if—
i: the services are supplied to a person who, at the time of the supply, is non-resident and outside New Zealand; and
ii: the goods are entered for home consumption under the Customs and Excise Act 2018
iii: the arrangement for the supply of the services is made before the goods are entered; and
iv: the services are reasonably expected to be completed within the period of 28 days that begins on the date of entry of the goods; or
d: the services are the insuring, or the arranging of the insurance, or the arranging of the transport of passengers or goods to which any one of paragraphs (a) to (cb)
e: the services are supplied directly in connection with land situated outside New Zealand, or with an improvement to such land, or are supplied in connection with such land or improvement and are intended to enable or assist a change in the physical condition, or ownership or other legal status, of the land or improvement; or
f: the services are supplied directly in connection with moveable personal property, other than choses in action, situated outside New Zealand when the services are performed; or
g: the services are supplied to overseas postal organisations for the delivery in New Zealand of postal articles mailed outside New Zealand; or
h: the services are supplied directly in connection with goods supplied from outside New Zealand and whose destination is outside New Zealand, including stores for craft, only if the goods are not removed from the ship or aircraft in which they arrived while the ship or aircraft is in New Zealand; or
i: the services are supplied directly in connection with goods referred to in section 136 section 137
ib: the services are supplied directly in connection with goods to which section 11(1)﻿(i)
j: the services—
i: are physically performed outside New Zealand; and
ii: are not remote services supplied to a New Zealand resident who is not a registered person; or
jb: the services are the arranging of underlying services that—
i: are physically performed outside New Zealand; and
ii: are not remote services supplied to a New Zealand resident who is not a registered person; or
jbb: the services are the arranging of underlying services that are supplied directly in connection with moveable personal property, other than choses in action, situated outside New Zealand when the services are performed; or
jc: the services are a supply of services to which section 60(1C)﻿(a)
k: subject to subsection (2), the services are supplied to a person who is a non-resident
i: supplied directly in connection with land situated in New Zealand, or with an improvement to such land, or are supplied in connection with such land or improvement and are intended to enable or assist a change in the physical condition, or ownership or other legal status, of the land or improvement; or
ii: supplied directly in connection with moveable personal property, other than choses in action or goods to which paragraph (h) or (i) applies, situated in New Zealand at the time the services are performed; or
iii: the acceptance of an obligation to refrain from carrying on a taxable activity, to the extent to which the activity would have occurred within New Zealand; or
l: subject to subsection (2), the services are the supply of information to a person who is a non-resident
m: the services are supplied—
i: directly in connection with goods, the supply of which was subject to any one of section 11(1)﻿(a)
ii: to a recipient who, when the services are performed, is a non-resident and outside New Zealand; or
maa: the services are supplied—
i: directly in connection with goods, the supply of which is subject to section 11(1)﻿(p)
ii: to a recipient who, when the services are performed, is a non-resident and not a registered person; or
ma: the services relate to goods under warranty to the extent that the services are—
i: provided under the warranty; and
ii: supplied for consideration that is given by a warrantor who is a non-resident
iii: in respect of goods that were subject to tax under section 12(1)
n: subject to subsection (4), the services are—
i: the filing, prosecution, granting, maintenance, transfer, assignment, licensing or enforcement of intellectual property rights, including patents, designs, trade marks, copyrights, plant variety rights, know-how, confidential information, trade secrets or similar rights; or
ii: other services in respect of rights listed in subparagraph (i), including services involved in the making of searches, the giving of advice, opposing a grant or seeking the revocation of the rights, or opposing steps taken to enforce the rights; or
o: the services are the acceptance of an obligation to refrain from pursuing or exercising in whole or in part rights listed in paragraph (n) to the extent that the rights are for use outside New Zealand; or
p: the services are the acceptance of an obligation to refrain from carrying on a taxable activity if the activity would have occurred outside New Zealand; or
q: the services are financial services that are supplied in respect of a taxable period, by a registered person who has made an election under section 20F
i: a 12-month period that includes the taxable period; or
ii: a period acceptable to the Commissioner; or
r: the services are financial services that are supplied in respect of a taxable period, by a registered person who has made an election under section 20F section IA 6
i: the members of the group make supplies of goods and services to persons who are not members of the group in respect of—
A: a 12-month period that includes the taxable period; or
B: a period acceptable to the Commissioner; and
ii: not less than 75% of the total value of the supplies referred to in subparagraph (i) consists of taxable supplies that are not charged with tax at the rate of 0% under this paragraph or under paragraph (q); or
s: the services are an emissions unit and the supply is the transfer of the emissions unit, other than a transfer by the Crown under—
i: an agreement relating to a project to reduce emissions:
ii: a negotiated greenhouse agreement, to a person because the person exceeds the milestone targets under the agreement:
t: the services are an emissions unit, and the supply is the surrender of the emissions unit under section 63
u: the services are supplied to or by the Crown as consideration for a supply—
i: for which there is no payment of a price; and
ii: that is chargeable at the rate of 0% under paragraph (s) or (t); or
v:
w: the supply is a sale or other disposal of services that are a unit—
i: issued by reference to the sequestration, or avoidance of emission, of human-induced greenhouse gases; and
ii: other than an emissions unit; and
iii: verified to an internationally recognised standard; or
x: the services are remote services to which section 8(3)﻿(c)
1B: Subsection (1)﻿(j) does not apply to a supply of services that is treated by section 8(4B)
1C: For the purposes of subsection (1)﻿(jb), the services that are the arranging of the underlying services may include more than 1 supply if the supplies are made to facilitate the supply of the underlying services.
1D: Subsection (1)﻿(a), (c), (cb), (d), and (f) do not apply to a supply, by a registered person who is a redeliverer and supplier under section 60E section 8
2: Subsection (1)﻿(k) and (1)﻿(l) do not apply to a supply of services under an agreement that is entered into, whether directly or indirectly, with a person (person A) who is a non-resident
a: the performance of the services is, or it is reasonably foreseeable at the time the agreement is entered into that the performance of the services will be, received in New Zealand by another person (person B), including—
i: an employee of person A; or
ii: if person A is a company, a director of the company; and
b: it is reasonably foreseeable, at the time the agreement is entered into, that person B will not receive the performance of the services in the course of making taxable or exempt supplies.
3: For the purpose of subsection (1)﻿(k) , (1)﻿(l) and (1)﻿(ma) outside New Zealand
3B: For the purpose of subsection (1)﻿(k), outside New Zealand
4: Subsection (1)﻿(n) applies only to the extent that—
a: the rights are for use outside New Zealand; or
b: the services are supplied to a person who is a non-resident
5: This section does not apply to supplies of telecommunications services.
6: The availability of a deduction under subsection (1)﻿(q) and (r) must be determined using a method allowed by section 20E
7: Subsection (1)﻿(x) does not apply to a supply of services for which the supplier subsequently makes an election under section 24(5B) Section 11A inserted 10 October 2000 section 90(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 11A(1)﻿(b) amended 1 June 2004 section 41(3) Civil Aviation Amendment Act 2004 Section 11A(1)﻿(bb) inserted 26 March 2003 section 156(1) Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 Section 11A(1)﻿(c) amended 30 March 2022 section 11 Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 11A(1)﻿(cb) inserted 25 November 2003 section 149(1) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 11A(1)﻿(cb)﻿(ii) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 11A(1)﻿(d) amended 25 November 2003 section 149(2) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 11A(1)﻿(e) replaced 1 April 2017 section 353(1) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 11A(1)﻿(i) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 11A(1)﻿(ib) inserted 30 March 2017 section 353(2) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 11A(1)﻿(j) replaced 30 March 2017 section 353(3) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 11A(1)﻿(jb) inserted 30 March 2017 section 353(3) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 11A(1)﻿(jbb) inserted 26 June 2019 section 16(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 11A(1)﻿(jc) inserted 30 March 2017 section 353(3) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 11A(1)﻿(k) amended 25 November 2003 section 149(3) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 11A(1)﻿(k)﻿(i) replaced 1 April 2017 section 353(4) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 11A(1)﻿(k)﻿(ii) replaced 1 April 2017 section 353(4) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 11A(1)﻿(k)﻿(iii) inserted 1 April 2017 section 353(4) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 11A(1)﻿(l) amended 25 November 2003 section 149(3) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 11A(1)﻿(m) substituted 25 November 2003 section 149(4) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 11A(1)﻿(m)﻿(i) amended 19 December 2007 section 274 Taxation (Business Taxation and Remedial Matters) Act 2007 Section 11A(1)﻿(maa) inserted 30 June 2014 section 189(1) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 11A(1)﻿(ma) inserted 17 October 2002 section 100(1) Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 Section 11A(1)﻿(ma)﻿(ii) amended 25 November 2003 section 149(3) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 11A(1)﻿(p) amended 1 January 2005 section 149(5) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 11A(1)﻿(q) added 1 January 2005 section 149(5) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 11A(1)﻿(r) added 1 January 2005 section 149(5) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 11A(1)﻿(r) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 11A(1)﻿(r)﻿(ii) amended 1 January 2009 section 80(1) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 11A(1)﻿(s) substituted 7 September 2010 section 191(1) Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 Section 11A(1)﻿(t) added 1 January 2009 section 80(1) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 11A(1)﻿(u) substituted 21 December 2010 section 11 Taxation (GST and Remedial Matters) Act 2010 Section 11A(1)﻿(v) repealed 7 September 2010 section 191(2) Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 Section 11A(1)﻿(w) added 1 April 2010 section 710(3) Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 Section 11A(1)﻿(w)﻿(iii) amended 1 October 2016 section 58(2) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 11A(1)﻿(x) inserted 1 October 2016 section 58(2) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 11A(1B) substituted 1 January 2005 section 145(1) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 Section 11A(1C) inserted 30 March 2017 section 353(5) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 11A(1D) inserted 1 December 2019 section 16(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 11A(2) amended 25 November 2003 section 149(7) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 11A(3) amended 17 October 2002 section 100(2) Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 Section 11A(3B) inserted 30 June 2014 section 189(2) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 11A(4)﻿(b) amended 25 November 2003 section 149(7) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 11A(5) added 1 July 2003 section 156(2) Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 Section 11A(6) added 1 January 2005 section 145(2) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 Section 11A(7) inserted 1 October 2016 section 58(3) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
11AB: Zero-rating of telecommunications services
1: A supply of services that is chargeable with tax under section 8
a: the services are the supply of telecommunications services to an overseas telecommunications supplier by a telecommunications supplier who is a resident
b: the services are the supply of telecommunications services to a person under section 8(9)
c: the services are inbound mobile roaming services supplied to a non-resident.
2: Subsection (1)﻿(b) does not apply to outbound mobile roaming services. Section 11AB inserted 1 July 2003 section 157 Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 Section 11AB(1)﻿(a) amended 25 November 2003 section 150(1) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 11AB(1)﻿(b) amended 1 April 2022 section 185(1) Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 11AB(1)﻿(b) amended 25 November 2003 section 150(2) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 11AB(1)﻿(c) inserted 1 April 2022 section 185(1) Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 11AB(2) inserted 1 April 2022 section 185(2) Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021
11B: Zero-rating of
some supplies by territorial authorities, some supplies involving contributions to local authorities
1: A supply of services that is chargeable with tax under section 8 section 198
1B: If a supply under section 5(7B) section 8
1C: If a supply under section 5(7C) section 8
1D:
1E:
2: For the purpose of subsection (1)— local authorities petroleum tax Part 11 territorial authority Local Government Act 2002 Section 11B inserted 10 October 2000 section 90(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 11B heading amended 25 November 2003 section 151(1) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 11B(1B) inserted 25 November 2003 section 151(2) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 11B(1C) inserted 25 November 2003 section 151(2) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 11B(1D) repealed 6 August 2010 section 5(3) Affordable Housing: Enabling Territorial Authorities Act Repeal Act 2010 Section 11B(1E) repealed 6 August 2010 section 5(3) Affordable Housing: Enabling Territorial Authorities Act Repeal Act 2010 Section 11B(2) territorial authority substituted 1 July 2003 section 262 Local Government Act 2002
11C: Treatment of supplies by operators of loyalty programmes
1: This section applies when an operator of a loyalty programme makes a supply of services by entering into an arrangement (a loyalty transaction purchaser
2: The operator may defer the time of the supply of the services under section 9(9)
3: The first requirement is that 25% or more of the operator's taxable supplies must be zero-rated supplies of goods or services. The 25% threshold—
a: may be met by including the taxable activity of an associated person:
b: must be met for the 12-month period that ends with the month in which the supply of services under the loyalty transaction is made, and the operator must have reasonable grounds for believing the threshold will be met for the 12-month period that begins with the month in which that supply of services is made.
4: The second requirement is that—
a: the operator or an associated person must make supplies of goods or services in a business activity (the main business activity
b: the loyalty points supplied by the operator must only be able to be redeemed for reward as part of the main business activity.
5: The third requirement is that when the loyalty points are redeemed, the operator must be able to identify whether—
a: tax under section 8
b: the time of supply has been deferred under section 9(9)
6: If the operator has a partner in an associated loyalty programme, the second requirement is still treated as met if, in addition to those requirements, loyalty points supplied by the operator are able to be redeemed for reward by the partner. Section 11C inserted 6 October 2009 section 711 Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
12: Imposition of goods and services tax on imports
1: Notwithstanding anything in this Act, a tax to be known as goods and services tax shall be levied, collected, and paid in accordance with the provisions of this section at the rate of 15
a: entered therein, or delivered, for home consumption under the Customs and Excise Act 2018
b: entered for delivery to a manufacturing area licensed under section 59
c: before their entry, or delivery, for home consumption or, as the case may be, entry for delivery to a manufacturing area licensed under section 59 Customs and Excise Act 2018 by reference to the value of the goods as determined under subsection (2).
1A: Goods and services tax is not payable under subsection (1) for any goods if the chief executive of the New Zealand Customs Service is satisfied that, at the time of importation or entry for home consumption under the Customs and Excise Act 2018
a: the goods are intended solely for the use of an organisation, visiting force, expedition, or other body approved by the chief executive of the New Zealand Customs Service that may be established or temporarily based in New Zealand under an agreement or arrangement entered into by or on behalf of the Government of New Zealand with the Government of another State, the United Nations, or any other international organisation; or
b: the goods are intended solely for the use of a person temporarily resident in New Zealand for the purpose of serving as a member of any approved organisation, visiting force, expedition, or other body.
1B: For the purposes of subsection (1), the value of distantly taxable goods does not include the amounts referred to in subsection (2)﻿(a) and (c) section 8
1C: For the purposes of determining whether an item of goods in a consignment is goods to which subsection (1B) applies, the price, before the importation, of the supply of the item is treated as not including tax under section 8
a: sufficiently identifies the item and the registered person who includes the tax in the price of the supply of the item:
b: is information relating to the item that is acceptable to the Commissioner for the purposes of this subsection.
2: For the purposes of subsection (1), the value of goods imported into New Zealand shall be the sum of the following amounts (excluding any tax charged under this Act):
a: the amount of the value of the goods determined in accordance with Schedule 4
b: the amounts of duty (if any) and tax (if any) payable on those goods under the Customs and Excise Act 2018
c: the amount paid or payable to transport the goods to New Zealand and to insure the goods for such transport, if not already included under paragraph (a) ; and
d: the amount of levy paid or payable on goods under the Climate Change Response Act 2002
3: Subject to this section, tax levied under subsection (1) shall be collected and paid in accordance with the Customs and Excise Act 2018
4: The following provisions shall apply to the collection, payment, and enforcement of goods and services tax levied under subsection (1):
a: the Customs and Excise Act 2018
i: the provisions referred to in paragraphs (b) to (d) of this subsection; and
ii: sections 146 153 404
b: sections 151 152 provided that this paragraph shall apply only in respect of goods that are imported by the same person as the person who exported them from New Zealand if, at the time of their export from New Zealand, those goods were not—
i: a supply of goods charged with tax at the rate of 0% pursuant to section 11
ii: a supply of goods, made before 1 October 1986, that would have been charged with tax at the rate of 0% pursuant to section 11
c: sections 142 to 145 149 150 406 provided that this paragraph shall not apply to any registered person in respect of goods imported for the purpose of carrying on that person's taxable activity if the person is entitled to make an input tax deduction under section 20(3)
d: section 147
i: the specifications of the imported goods are not in accordance with the specifications of the goods ordered, or the imported goods are faulty; and
ii: the recipient is either not a registered person, or is a registered person but is not entitled to make an input tax deduction under section 20(3)
iii: the person who imported the goods exports the goods—
A: in the case of goods with the wrong specifications, within 2 months after their importation, or such longer period not exceeding 12 months after their importation as may be approved by the Customs; or
B: in the case of faulty goods, within 12 months after their importation; and
e: reference numbers 40, 45, 70, 75, 80, 81, and 82 of Part 2 of the Tariff (as defined in section 2(1)
i: the goods are entitled to be entered under any of these reference numbers; or
ii: the goods are entitled to be entered duty free under Part 1 of the Tariff
f:
5: No liability to goods and services tax shall arise under any provision of the Customs and Excise Act 2018
6: For the purposes of this section—
a: the terms fine metal New Zealand person registered person section 2
b: the term taxable activity section 6 Section 12 substituted 1 October 1996 section 289(1) Customs and Excise Act 1996 Section 12(1) amended 20 May 2010 section 47(1) Taxation (Budget Measures) Act 2010 Section 12(1)﻿(a) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 12(1)﻿(b) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 12(1)﻿(c) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 12(1A) inserted 27 September 2001 section 3 Goods and Services Tax Amendment Act 2001 Section 12(1A) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 12(1B) inserted 1 December 2019 section 17 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 12(1B) amended 23 March 2020 section 246 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 12(1C) inserted 1 December 2019 section 17 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 12(2)﻿(a) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 12(2)﻿(b) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 12(2)﻿(c) amended 1 January 2013 section 103 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 12(2)﻿(d) inserted 1 January 2013 section 103 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 12(3) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 12(4)﻿(a) replaced 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 12(4)﻿(b) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 12(4)﻿(c) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 12(4)﻿(c) proviso amended 10 October 2000 section 91(2) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 12(4)﻿(d) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 12(4)﻿(d)﻿(ii) amended 21 June 2005 section 156 Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 Section 12(4)﻿(e) substituted 1 January 2010 section 9(6) Tariff Amendment Act 2009 Section 12(4)﻿(f) repealed 10 October 2000 section 91(3) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 12(5) amended 1 October 2018 section 443(3) Customs and Excise Act 2018
12B: Reimbursement of tax by supplier if recipient charged tax on both supply and importation
1: This section applies if a registered person makes a supply of goods, that involves the importation of the goods into New Zealand and is treated as being a supply of distantly taxable goods charged with tax at a rate of more than zero, and receives consideration for the supply that includes an amount as tax charged under section 8
2: The registered person must reimburse the recipient of the supply for the amount received as tax charged under section 8 section 12 Section 12B inserted 1 December 2019 section 18 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
12C: Information for importation of goods including distantly taxable goods
A registered person who makes a supply of distantly taxable goods, on which tax at a rate greater than 0% is charged under section 8(1)
a: the name and registration number of the registered person:
b: information indicating the items included in the supply, or imported with the supply, for which the amount of tax included in the price of the supply is more than zero:
c: information indicating the items included in the supply, or imported with the supply, for which the amount of tax included in the price of the supply is zero:
d: information that is acceptable to the Commissioner in substitution for information referred to in paragraphs (a) to (c). Section 12C inserted 1 April 2023 section 12(1) section 12(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
13: Imposition of goods and services tax on goods liable to excise duty and supplied at in bond prices
Section 13 repealed 1 October 1996 section 289(1) Customs and Excise Act 1996
14: Exempt supplies
1: The following supplies of goods and services shall be exempt from tax:
a: the supply of any financial services (together with the supply of any other goods and services, supplied by the supplier of those financial services, which are reasonably incidental and necessary to that supply of financial services), not being a supply referred to in subsection (1B)
i:
ii:
b: the supply by any non-profit body of any donated goods and services:
c: the supply of accommodation in any dwelling by way of—
i: hire; or
ii: a service occupancy agreement; or
iii: a licence to occupy:
ca: the supply of leasehold land by way of rental (not being a grant or sale of the lease of that land) to the extent that that land is used for the principal purpose of accommodation in a dwelling erected on that land:
cb: the supply of property by way of lease that is to be used for the principal purpose of accommodation in a dwelling by any person, other than a registered person in the course or furtherance of a taxable activity:
d: the supply, being a sale, by any registered person in the course or furtherance of any taxable activity of—
i: any dwelling; or
ii: the reversionary interest in the fee simple estate of any leasehold land,— that has been used by the registered person for a period of 5 years or more before the date of the supply exclusively for the making of any supply or supplies referred to in paragraph (c) , (ca), or (cb)
e: the supply of any fine metal, not being a supply which, but for this paragraph, would be charged with tax at the rate of 0% pursuant to section 11
1B: The following supplies are excluded from the exemption under subsection (1):
a: a supply of financial services that, in the absence of subsection (1)﻿(a), would be charged with tax at the rate of 0% under section 11A
b: a supply described in paragraph (b) of the definition of associated supply:
c: a supply of goods and services which (although being part of a supply of goods and services which, but for this paragraph, would be an exempt supply under subsection (1)﻿(a)) is not in itself, as between the supplier of that first-mentioned supply and the recipient, a supply of financial services in respect of which subsection (1)﻿(a) applies.
2: A supplier and a recipient may agree, recording their agreement in a document
a: the lease was entered into before 16 May 2000; and
b: the supplier has, before 16 May 2000, treated a supply under the lease as being a taxable supply.
3: An amount is treated as being consideration for an exempt supply if it is—
a: penalty or default interest, or a charge in the nature of penalty or default interest, that is imposed—
i: under a contract for the supply of goods and services:
ii: under an enactment:
b: a penalty imposed on unpaid rates under the Local Government (Rating) Act 2002
c: a postponement fee, or a part of a postponement fee, that is imposed under section 88 Section 14(1)﻿(a) substituted 19 December 1989 Goods and Services Tax Amendment Act (No 2) 1989 Section 14(1)﻿(a) amended 3 April 2006 section 289(1)﻿(a) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 14(1)﻿(a)﻿(i) repealed 3 April 2006 section 289(1)﻿(b) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 14(1)﻿(a)﻿(ii) repealed 3 April 2006 section 289(1)﻿(b) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 14(1)﻿(c) substituted 1 August 1990 section 6(1) Goods and Services Tax Amendment Act 1990 Section 14(1)﻿(ca) inserted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 14(1)﻿(cb) inserted 10 October 2000 section 92(3) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 14(1)﻿(d) substituted 1 August 1990 section 6(2) Goods and Services Tax Amendment Act 1990 Section 14(1)﻿(d) amended 26 June 2019 section 19 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 14(1)﻿(e) added 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 14(1)﻿(e) amended 10 October 2000 section 92(4) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 14(1B) inserted 3 April 2006 section 289(2) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 14(2) added 10 October 2000 section 92(5) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 14(2) amended 2 June 2016 section 186 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 14(3) substituted 25 November 2003 section 152(1) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003
3: Returns and payment of tax
15: Taxable periods
1: A registered person's taxable period must be one of the following or a period described in section 15E(2)
a: a 6-month period, if subsection (2) applies:
b: a 2-month period:
c: a 1-month period, if subsection (3) or (4) applies.
2: A person’s taxable period may be a 6-month period if the person applies to the Commissioner to pay on that basis and—
a: the person’s taxable supplies in a 12-month period are no more, and are not likely to be more, than $500,000:
b: the person makes 80% or more of the person’s taxable supplies for an income year during a period of 6 months or less that ends with, or less than 1 month before, the end of the income year and has not had a 6-month period as a taxable period under this paragraph in the 24-month period before the application.
3: A person's taxable period may be a 1-month period if the person applies to the Commissioner to pay on that basis.
4: A person's taxable period must be a 1-month period if the person's taxable supplies in a 12-month period are more, or are likely to be more, than $24,000,000.
5: For the purposes of subsections (2) and (4),—
a: the 12-month period is a period that starts on the first day of a month and ends on the last day of a month or is a period of approximately 12 months consisting of taxable periods approved for the person and described in section 15E(2)
b: the amount of a person's taxable supplies does not include the amount of taxable supplies arising as part of—
i: the ending, including a premature ending, of a taxable activity carried on by the person:
ii: a substantial and permanent reduction in the size or scale of a taxable activity carried on by the person:
iii: the replacement of plant or a capital asset used in a taxable activity carried on by the person:
c: the Governor-General, from time to time, may declare by Order in Council another amount as the limit applying to the value of a person's taxable supplies.
6: Despite subsections (1) to (4), the taxable period of a non-resident supplier whose only supplies are supplies of distantly taxable goods or remote services section 8(3)﻿(c)
7: Despite subsection (6), a non-resident supplier of distantly taxable goods that becomes a registered person in the period beginning on 1 December 2019 and ending on 31 December 2019 has a first taxable period of 1 December 2019 to 31 March 2020.
8: An order under subsection (5)﻿(c) is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 15 substituted 1 October 2007 section 291(1) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 15(1) amended 30 March 2022 section 13(1) section 13(3) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 15(2) replaced 30 March 2017 section 354 Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 15(5)﻿(a) amended 30 March 2022 section 13(2) section 13(3) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 15(6) replaced 1 April 2017 section 59(2) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 15(6) amended 1 December 2019 section 20(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 15(7) inserted 1 December 2019 section 20(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 15(8) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
15A: Change in registered person's taxable period
Section 15A repealed 1 October 2007 section 291(1) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006
15AB: Transitional provision: alignment of taxable periods with balance dates
Section 15AB repealed 1 October 2007 section 291(1) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006
15B: Taxable periods aligned with balance dates
1: Unless section 15(3) or (4)
2: A person must have a taxable period that is aligned with the person's balance date under section 33 38 Schedule 3
3: For the purposes of subsection (2), a person whose balance date changes during an income year must,—
a: before the new balance date, use the payment frequency applying at the start of the income year:
b: after the new balance date, use the cycle of taxable periods starting on the first day of the new income year.
4: If a person's GST cycle is not aligned with the person's balance date and the person has a provisional tax liability for a tax year, the Commissioner must adjust the person's taxable periods by truncating the last taxable period before the balance date so that the taxable period and income year end on the same date.
4B: For the purposes of subsection (4), the GST cycle of a person with a taxable period described in section 15E(2)
5: The Commissioner may make the adjustment in subsection (4) if—
a: the person's income tax liability indicates that a provisional tax liability is likely to arise:
b: the person asks for the adjustment.
6: In this section, balance date
a: if neither of paragraphs (b) and (c) applies, the person's annual balance date for their accounts for the income year corresponding to the tax year for which the person must provide a return of income under the Tax Administration Act 1994
b: if the person has an income year that coincides with the tax year or is not required to provide a return of income for the tax year, 31 March:
c: if the person is a non-resident company that does not have a fixed establishment in New Zealand, 31 March. Section 15B inserted 1 October 2007 section 291(1) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 15B(2) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 15B(4B) inserted 30 March 2022 section 14(1) section 14(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
15C: Changes in taxable periods
1: A person to whom section 15(1)﻿(b) or (c) 6-month period, or to an equivalent period described in section 15E(2) section 15(2)
2: A person to whom section 15(1)﻿(a)
2B: A person who fails to meet the requirement of section 15(2)﻿(a)
a: is likely to meet the requirement of section 15(2)﻿(a)
b: is not relieved by this subsection from a requirement under subsection (2) arising from a failure to meet the requirement of section 15(2)﻿(a)
3: A person to whom section 15(1)﻿(a) 2-month period, or to an equivalent period described in section 15E(2)
3B: A person to whom section 15(1)﻿(a) or (b) 1-month period, or to an equivalent period described in section 15E(2)
3C: A person to whom section 15(1)﻿(c) 2-month period, or to an equivalent period described in section 15E(2)
4: A person whose taxable period is based on a 6-month or 2-month cycle is treated as having changed to a 1-month cycle if—
a: the threshold in section 15(4)
b: the person has not notified the Commissioner of a change of status under section 53(1)﻿(ca)
5: A return provided after a change in taxable period must not include amounts for a period for which a return has already been provided. Section 15C inserted 1 October 2007 section 291(1) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 15C(1) replaced 30 March 2017 section 355(1) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 15C(1) amended 30 March 2022 section 15(1) section 15(5) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 15C(2) replaced 30 March 2017 section 355(2) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 15C(2B) inserted 30 March 2017 section 355(2) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 15C(3) amended 30 March 2022 section 15(2) section 15(5) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 15C(3B) inserted 1 October 2007 section 214(1) Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 Section 15C(3B) amended 30 March 2022 section 15(3) section 15(5) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 15C(3C) inserted 1 October 2007 section 214(1) Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 Section 15C(3C) amended 30 March 2022 section 15(4) section 15(5) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
15D: When change in taxable period takes effect
1: This section applies if a registered person, who qualifies under section 15
a: applies under section 15B(5)﻿(b) 15C to a period consisting of calendar months
ab: applies under section 15C section 15E(2)
b: is required because of section 39B
2: A change in taxable period under subsection (1)﻿(a) or (b)
2B: A change in taxable period under subsection (1)﻿(ab) takes effect at—
a: the end of the taxable period in which the person applies; or
b: the end of a later taxable period nominated by the registered person and approved by the Commissioner.
3: Despite subsection (2), for a person to whom section 15B
3B: A change in taxable period continues to have effect until—
a: the Commissioner withdraws approval for the basis on which the person’s taxable period is set because the Commissioner considers that the person does not have good commercial reasons for the basis:
b: the person chooses, or is required, to have the person’s taxable period set on a different basis.
4: Section RC 27 Section 15D inserted 1 October 2007 section 291(1) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 15D(1)﻿(a) amended 30 March 2022 section 16(1) section 16(6) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 15D(1)﻿(a) amended 1 October 2007 section 215(1) Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 Section 15D(1)﻿(ab) inserted 30 March 2022 section 16(2) section 16(6) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 15D(2) amended 30 March 2022 section 16(3) section 16(6) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 15D(2B) inserted 30 March 2022 section 16(4) section 16(6) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 15D(3B) inserted 30 March 2022 section 16(5) section 16(6) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 15D(4) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007
15E: Meaning of end of taxable period
1: A taxable period ends on the last day of a month.
2: Despite subsection (1), a registered person may apply under section 15C section 15EB
a: equivalent to a 1-month period and has a last day that is an approved date of the month; or
b: equivalent to a 1-month period and has a last day that is an approved day of the fourth week in each taxable period; or
c: equivalent to a 2-month period and has a last day that is an approved date of the second month in each taxable period; or
d: equivalent to a 2-month period and has a last day that is an approved day of the eighth week in each taxable period; or
e: equivalent to a 6-month period and has a last day that is an approved date not more than 7 days before or after the last day of the sixth month in each taxable period; or
f: equivalent to a 6-month period and has a last day that is an approved day of the week not more than 7 days before or after the last day of the sixth month in each taxable period.
2B: If a registered person has a taxable period with an approved last day or date that is not the last day of the month, the approved day or date for each taxable period and the end of the month to which the day or date is treated as corresponding for the purposes of the Act are determined using the following rules:
a: if an approved day or date for a month is before or on the fifteenth day of the month, the approved day or date is treated as corresponding to the end of the preceding month; and
b: if an approved day or date for a month is after the fifteenth day of the month, the approved day or date is treated as corresponding to the end of the month; and
c: successive taxable periods end on successive approved days or dates, unless subsection (2C) applies.
2C: A taxable period that starts after an approved day (the change day
a: the change day is treated under subsection (2B) as corresponding to the end of the month of the change day; and
b: the first approved day after the change day is treated under subsection (2B) as corresponding to the end of the month of the change day.
3: Subsection (4) applies if 1 or more of the following events occurs in relation to a registered person:
a: the natural person dies or is made bankrupt:
b: the company goes into liquidation or receivership, or ceases to exist on amalgamation (as defined in section YA 1
4: Despite subsection (1), if an event referred to in subsection (3) occurs, the date of the event is treated as the end of the person's taxable period. Section 15E inserted 1 October 2007 section 291(1) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 15E(2) replaced 30 March 2022 section 17(1) section 17(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 15E(2B) inserted 30 March 2022 section 17(1) section 17(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 15E(2C) inserted 30 March 2022 section 17(1) section 17(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 15E(3)﻿(b) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007
15EB: Approval of taxable period not consisting of whole calendar months
1: The Commissioner may approve under section 15C
2: The Commissioner may approve under section 15C
a: the use of the day requested would improve the alignment of the registered person’s taxable periods with the registered person’s accounting systems; and
b: if the registered person is requesting a last day that is not within 7 days of the end of the month, the registered person’s accounting systems do not allow the use of a last day within 7 days of the end of the month.
3: If a registered person receives approval under subsection (1) or (2) for a taxable period (the new period old period
a: the last old period for which the registered person makes a return must end on or before the day that precedes, by the length of a new period, the first day or date approved for the new period; and
b: the first new period for which the registered person makes a return begins after the end of the last old period referred to in paragraph (a). Section 15EB inserted 30 March 2022 section 18(1) section 18(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
16: Taxable period returns
1: A registered person must provide a return setting out the amount of tax payable by them for a taxable period, calculated under section 20
2: A return required by subsection (1) must be provided on or before—
a: the 28th of the month following the end of the taxable period, if paragraph (b) or (c) do not apply; or
b: 15 January, if the month following the end of the taxable period is December; or
c: 7 May, if the month following the end of the taxable period is April.
3: If the circumstances of a non-profit body or a particular case mean a variation is required in the date on which a return must be provided, the Commissioner may vary the date.
4: A person who ceases to be a registered person must provide a final return for the part of the last taxable period for which they were registered.
5: A return required by subsection (4) must be provided on or before—
a: the 28th of the month following the end of the taxable period, if paragraph (b) or (c) do not apply; or
b: 15 January, if the month following the end of the taxable period is December; or
c: 7 May, if the month following the end of the taxable period is April.
6: A return must contain a notice of the assessment that must be made under section 92B Section 16 substituted 31 March 2007 section 292(1) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 16(2)﻿(a) substituted 31 March 2007 section 216(1) Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 Section 16(2)﻿(b) substituted 31 March 2007 section 216(1) Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 Section 16(2)﻿(c) added 31 March 2007 section 216(1) Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 Section 16(5)﻿(a) substituted 31 March 2007 section 216(2) Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 Section 16(5)﻿(b) substituted 31 March 2007 section 216(2) Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 Section 16(5)﻿(c) added 31 March 2007 section 216(2) Taxation (Savings Investment and Miscellaneous Provisions) Act 2006
17: Special returns
1: Where goods are deemed to be supplied by a section 5(2)
a: furnish to the Commissioner in the prescribed form
i: that person's name and address and, if registered, registration number; and
ii: the name, address, and , if registered,
iii: the date of the sale; and
iv: the description and quantity of the goods sold; and
v: the amount for which they were sold and the amount of tax charged on that supply; and
vi: such other particulars as may be prescribed; and
b: pay to the Commissioner the amount of tax charged on that supply; and
c: furnish to the person whose goods were sold, details of the information shown on the return referred to in paragraph (a),— and the person selling the goods and the
1B: The actions required of a person under subsection (1)﻿(a) to (c) must be completed, on or before
a: the 28th of the month following the end of the month in which the relevant sale was made, if paragraphs (b) or (c) do not apply; or
b: 15 January, if November is the month in which the relevant sale was made; or
c: 7 May, if March is the month in which the relevant sale was made.
2: Any amount of tax charged on any supply of goods to which this section applies shall be deemed, for the purposes of this Act, to be tax payable and shall be recoverable as a debt due to the Crown.
3: A return must contain a notice of the assessment that must be made under section 92B Section 17(1) amended 19 December 2007 section 275(1) Taxation (Business Taxation and Remedial Matters) Act 2007 Section 17(1) amended 22 June 1987 Goods and Services Tax Amendment Act 1987 Section 17(1) amended 22 June 1987 Goods and Services Tax Amendment Act 1987 Section 17(1)﻿(a) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 17(1)﻿(a)﻿(ii) amended 22 June 1987 Goods and Services Tax Amendment Act 1987 Section 17(1)﻿(a)﻿(vi) substituted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 17(1)﻿(c) substituted 19 December 1989 Goods and Services Tax Amendment Act (No 2) 1989 Section 17(1B) inserted 19 December 2007 section 275(2) Taxation (Business Taxation and Remedial Matters) Act 2007 Section 17(1B) amended 21 December 2010 section 12(1) Taxation (GST and Remedial Matters) Act 2010 Section 17(3) added 21 December 2004 section 147(1) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004
18: Other returns
In addition to the returns specified in sections 16 17 and 19B Section 18 amended 25 November 2003 section 153 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003
19: Accounting basis
1: Subject to sections 19A to 19D section 20
1B: Despite subsection (1), if the Commissioner registers a non-resident person under section 54B section 20
2: The Commissioner may, on application section 20
a: on a payments basis, if the registered person satisfies the requirements of section 19A(1)
b: on a hybrid basis.
3: The Commissioner may, on application
a: on an invoice basis; or
b: on a hybrid basis; or
c: on a payments basis, if the registered person satisfies the requirements of section 19A(1)
3B: Despite subsection (3), a liquidator, receiver, or administrator (as defined in section 239B
4: Where the Commissioner gives a direction in respect of a registered person's accounting basis under subsection (2) or subsection (3) of this section or under section 19A(2)
a: the commencement of the taxable period immediately following the taxable period during which the direction is given by the Commissioner, in any case to which paragraph (b) or paragraph (c) does not apply; or
b: the person's registration under this Act, where the direction is given by the Commissioner before the end of the first taxable period of the person that follows that registration; or
c: the commencement of such other taxable period as the Commissioner considers equitable, where the Commissioner and the person so agree. Section 19 substituted 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 19(1) substituted 10 October 2000 section 95(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 19(1B) inserted 1 April 2014 section 126 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 19(2) amended 2 June 2016 section 187(1) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 19(3) amended 2 June 2016 section 187(2) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 19(3B) inserted 2 November 2012 section 213 Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012
19A: Requirements for accounting on payments basis
1: The Commissioner shall not direct any registered person to account for tax payable on a payments basis under section 19
a: the registered person is—
i:
ii:
iii: a non-profit body; or
iv: a non-resident; or
b: in respect of the registered person—
i: at the end of any month, the total value of the person's taxable supplies in the period of 12 months then ending has not exceeded $2,000,000
ii: in the period of 12 months beginning on the first day of any month, the total value of the person's taxable supplies is not likely to exceed the amount specified in or under subparagraph (i); or
c: the Commissioner is satisfied that, due to the nature, volume, and value of taxable supplies made by the registered person and the nature of the accounting system employed by the person, it would be appropriate for the person to furnish returns under this Act on a payments basis.
2: Where the Commissioner is satisfied (whether by a notification given by the registered person under section 53(1)﻿(cb)
a: direct that the registered person account for tax payable on an invoice basis; or
b: on application by the registered person
3: For the purposes of subsection (2), a registered person shall not be treated as having ceased to satisfy the conditions of subsection (1) by reason only that the total value of the registered person's taxable supplies has exceeded, or as the case may be will exceed, the amount specified by or under subsection (1)﻿(b) solely as a consequence of—
a: any ending of, including a premature ending of
b: the replacement of any plant or other capital asset used in any taxable activity carried on by that person.
4: An order under subsection (1)﻿(b)﻿(i) is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 19A inserted 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 19A(1)﻿(a)﻿(i) repealed 10 April 1995 Goods and Services Tax Amendment Act 1995 Section 19A(1)﻿(a)﻿(ii) repealed 17 July 2013 section 127(1) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 19A(1)﻿(a)﻿(iv) inserted 1 April 2014 section 127(2) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 19A(1)﻿(b)﻿(i) amended 30 March 2009 section 26 Taxation (Business Tax Measures) Act 2009 Section 19A(2) amended 23 September 1997 section 111 Taxation (Remedial Provisions) Act 1997 Section 19A(2)﻿(b) amended 2 June 2016 section 188 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 19A(3)﻿(a) amended 10 October 2000 section 96(3) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 19A(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
19AB: Local authorities accounting on payments basis on and after 1 July 2001
Section 19AB repealed 17 July 2013 section 128 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013
19B: Particulars to be furnished and prepared where change in accounting basis
1: Where the Commissioner directs a change in a registered person's accounting basis under section 19 section 19A
2: The particulars required to be furnished under subsection (1) shall be furnished to the Commissioner not later than the last day for furnishing a return pursuant to section 16
2B: The particulars required by subsection (1) must be furnished in a return that contains a notice of the assessment that must be made under section 92B
3: Where the Commissioner directs a change in a registered person's accounting basis under section 19 section 19A
a: where the registered person has been directed to change from an invoice to a payments basis of accounting, or from a payments basis to an invoice basis,—
i: prepare a list of creditors of the registered person in relation to that person's taxable activity, showing the amounts due by that person as at the last day of the taxable period preceding that in which the direction takes effect; and
ii: prepare a list of debtors of the registered person in relation to that person's taxable activity, showing the amounts due to that person as at the last day of the taxable period preceding that in which the direction takes effect:
b: where the registered person has been directed to change from an invoice to a hybrid basis of accounting, or from a hybrid basis to an invoice basis, prepare a list of creditors of the registered person in relation to that person's taxable activity, showing the amounts due by that person as at the last day of the taxable period preceding that in which the direction takes effect:
c: where that registered person has been directed to change from a payments basis to a hybrid basis of accounting, or from a hybrid basis to a payments basis, prepare a list of debtors of the registered person in relation to that person's taxable activity, showing the amounts due to that person as at the last day of the taxable period preceding that in which the direction takes effect. Section 19B inserted 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 19B(2B) inserted 21 December 2004 section 148(1) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004
19C: Tax payable, or refund, where change in accounting basis
1: Every registered person whose accounting basis is changed pursuant to section 19 19A 87 section 19B(2)
2: Where a registered person changes from an invoice basis to a payments basis of accounting, the tax payable under subsection (1) shall be an amount determined in accordance with the following formula: a − b where— a is an amount equal to the aggregate amount of the input tax deducted pursuant to section 20(3) section 19B(3)﻿(a)﻿(i) b is an amount equal to the aggregate amount of output tax accounted for pursuant to section 20(3) section 19B(3)﻿(a)﻿(ii)
3: Where a registered person changes from a payments basis to an invoice basis of accounting, the tax payable under subsection (1) shall be an amount determined in accordance with the following formula: a − b where— a is an amount equal to the aggregate amount of output tax that would have been accounted for pursuant to section 20(3) section 19B(3)﻿(a)﻿(ii) b is an amount equal to the aggregate amount of the input tax that would have been deducted pursuant to section 20(3) section 19B(3)﻿(a)﻿(i)
4: Where a registered person changes from a hybrid basis to an invoice basis of accounting, the tax payable under subsection (1) shall be an amount determined in accordance with the following formula: a − b where— a is zero; and b is an amount equal to the aggregate amount of input tax that would have been deducted pursuant to section 20(3) section 19B(3)﻿(b)
5: Where a registered person changes from a hybrid basis to a payments basis of accounting, the tax payable under subsection (1) shall be an amount determined in accordance with the following formula: a − b where— a is zero; and b is an amount equal to the aggregate amount of output tax accounted for pursuant to section 20(3) section 19B(3)﻿(c)
6: Where a registered person changes from an invoice basis to a hybrid basis of accounting, the tax payable under subsection (1) shall be an amount determined in accordance with the following formula: a − b where— a is an amount equal to the aggregate amount of input tax deducted pursuant to section 20(3) section 19B(3)﻿(b) b is zero.
7: Where a registered person changes from a payments basis to a hybrid basis of accounting, the tax payable under subsection (1) shall be an amount determined in accordance with the following formula: a − b where— a is an amount equal to the aggregate amount of output tax that would have been accounted for pursuant to section 20(3) section 19B(3)﻿(c) b is zero.
8: Subject to this Act, if, in relation to any particulars required to be furnished by section 19B section 46
9: For the purposes of this Act, any previous adjustment made to input tax or output tax, as the case may be, when a registered person changed—
a: from an invoice basis to a payments or a hybrid basis, as the case may be; or
b: from a payments basis to an invoice or a hybrid basis, as the case may be; or
c: from a hybrid basis to an invoice or a payments basis, as the case may be,— shall be deemed to have been deducted, or accounted for, as the case may be, pursuant to section 20(3) Section 19C inserted 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 19C(1) amended 17 July 2013 section 129 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 19C(2) substituted 13 March 1992 Goods and Services Tax Amendment Act 1992 Section 19C(3) substituted 13 March 1992 Goods and Services Tax Amendment Act 1992 Section 19C(4) substituted 13 March 1992 Goods and Services Tax Amendment Act 1992 Section 19C(5) substituted 13 March 1992 Goods and Services Tax Amendment Act 1992 Section 19C(6) substituted 13 March 1992 Goods and Services Tax Amendment Act 1992 Section 19C(7) substituted 13 March 1992 Goods and Services Tax Amendment Act 1992
19D: Invoice basis for supplies over $225,000
1: A registered person who makes a supply of goods and services for a consideration of more than $225,000 must account for tax payable on an invoice basis for that supply.
2: Subsection (1) does not apply if the supply of goods and services is a short term agreement for the sale and purchase of property or services, as that term is defined in section YA 1 , except that the reference to 93rd day on or before the day that is 1 year
2B: Subsection (1) does not apply if the supplier is a non-profit body that determines on the basis of reasonable information that, at the time of supply, the recipient—
a: is not a registered person; and
b: is either—
i: not intending to use the goods and services for the purposes of carrying on a taxable activity; or
ii: intending to use the goods and services for the purposes of carrying on a taxable activity but only after the full consideration for the supply is paid to the supplier.
3: For the purpose of subsection (1), the Commissioner may treat a registered person as having made a supply of goods and services for a consideration of more than $225,000 if—
a: the person has made more than 1 supply and the sum of the consideration for each supply is more than $225,000 irrespective of whether each supply is one to which subsection (2) applies; and
b: the Commissioner considers that the person made more than 1 supply to avoid the application of subsection (1). Section 19D inserted 10 October 2000 section 98(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 19D(2) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 19D(2) amended 1 April 2005 section YA 2 Income Tax Act 2004 Section 19D(2B) inserted 21 December 2010 section 13 Taxation (GST and Remedial Matters) Act 2010 Records of supplies Heading inserted 1 April 2023 section 19(1) section 19(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
19E: Definitions of types of record
1: Supply correction information
a: the name and the registration number of the supplier; and
b: information identifying the taxable supply information; and
c: the date of the supply correction information; and
d: the correction to the taxable supply information, including, if relevant, a correction to the amount of tax charged for the supply.
2: Taxable supply information
a: for a supply that is not referred to in paragraphs (d) to (g) and the consideration in money or money’s worth for the supply exceeds $1,000,—
i: the name and registration number of the supplier; and
ii: recipient details for the recipient; and
iii:
iv: the date of the invoice, or where no invoice is issued, the time of supply; and
v: a description of the goods or services; and
vi: if the amount of tax charged is the tax fraction of the consideration for the supply, the amount of the consideration for the supply and a statement that the amount includes a charge in respect of tax; and
vii: if subparagraph (vi) does not apply, the total amount of tax charged for the supply, the consideration for the supply excluding the tax, and the consideration for the supply including the tax:
b: for a supply that is not referred to in paragraphs (d) to (g) and the consideration in money or money’s worth for the supply exceeds $200 and does not exceed $1,000,—
i: the name and registration number of the supplier; and
ii: the date of the invoice or, where no invoice is issued, the time of supply; and
iii: a description of the goods or services; and
iv: if the amount of tax charged is the tax fraction of the consideration for the supply, the amount of the consideration for the supply and a statement that the amount includes a charge in respect of tax; and
v: if subparagraph (iv) does not apply, the total amount of tax charged for the supply, the consideration for the supply excluding the tax, and the consideration for the supply including the tax:
c: for a supply that is not referred to in paragraphs (d) to (g) and the consideration in money or money’s worth for the supply does not exceed $200, the supply information for the supply:
d: for a supply referred to in section 19G
e: for a supply referred to in section 19H
f: for a supply referred to in section 19L
g: for a supply referred to in section 19M Section 19E inserted 1 April 2023 section 19(1) section 19(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
19F: Records of supplies
1: A registered person who makes a supply of goods or services, or who receives a supply of goods or services for the purposes of carrying on a taxable activity, must have a record of the taxable supply information and supply correction information for the supply.
2: Despite subsection (1), a registered person is not required to keep a record of the GST registration number of the supplier if the amount of consideration for the supply is $200 or less. Section 19F inserted 1 April 2023 section 19(1) section 19(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
19G: Records of imported supplies received by registered person
1: A registered person who receives a supply of goods or services that is treated by section 8(4B) section 20(3JC)
2: The person must have a record of the supply showing—
a: the name and address of the supplier:
b: the date of the invoice or, where no invoice is issued, the time of supply:
c: a description of the goods or services supplied:
d: the consideration for the supply:
e:
f: the amount of the consideration for the supply that the registered person has treated as not affecting the value of the supply in reliance on section 10(15C)﻿(a)
g: the amount of the consideration for the supply that the registered person has treated as not affecting the value of the supply in reliance on section 10(15C)﻿(b) Section 19G inserted 1 April 2023 section 19(1) section 19(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
19H: Records of secondhand goods received by registered person
1: This section applies when a registered person—
a: purchases a supply of secondhand goods, that is not a taxable supply, for more than $200; and
b: claims an input tax deduction in respect of the supply.
2: The person must have a record of the supply showing—
a: the name and address of the supplier; and
b: the date on which the secondhand goods were supplied; and
c: a description of the secondhand goods; and
d: the quantity or volume of the secondhand goods; and
e: the consideration for the supply.
3: Section 19H inserted 1 April 2023 section 19(1) section 19(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
19I: Records of supplies to nominated recipients
A person who is nominated to receive a supply of goods under a contract to which section 60B(3), (4), and (6)
a: the name and address of the supplier; and
b: the date on which payment for the supply is made; and
c: a description of the goods; and
d: the consideration for the supply. Section 19I inserted 1 April 2023 section 19(1) section 19(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
19J: Records of supplies by members of GST group or supplier group
Where taxable supply information or supply correction information has been issued in respect of a supply by an active member of a GST group under section 55(1AM) section 55B
a: the name of the active member or supplying member; and
b: the address of the active member or supplying member; and
c: the registration number of the active member or supplying member, if any. Section 19J inserted 1 April 2023 section 19(1) section 19(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Supply information and supply correction information Heading inserted 1 April 2023 section 19(1) section 19(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
19K: Taxable supply information: supplies by registered person
1: A registered person who makes a taxable supply to another registered person must provide the recipient with taxable supply information for the supply within 28 days of a request for the taxable supply information.
2: Subsection (1) is overridden by subsections (4), (7), and (10) and section 19L
3: A registered person who makes a taxable supply to a person other than a registered person must provide the recipient with taxable supply information for the supply within 28 days of a request for the taxable supply information.
4: A registered person who has a taxable supply from another registered person must provide the supplier with taxable supply information for the supply if—
a: the recipient and supplier agree that—
i: the supplier will not issue taxable supply information under subsection (1) for taxable supplies by the supplier to the recipient to which the agreement relates; and
ii: the recipient will issue taxable supply information, for each taxable supply by the supplier to the recipient to which the agreement relates; and
b: the recipient and supplier record the reasons for entering the agreement if the terms of the agreement are not part of the normal terms of business between the recipient and supplier; and
c: the Commissioner does not, before the supply, invalidate the agreement because the Commissioner considers that the recipient and the supplier have failed to comply with the agreement or with paragraph (b).
5: A registered person who provides taxable supply information under subsection (4) for a taxable supply must provide the supplier with taxable supply information for the supply within 28 days of the request for the taxable supply information, or by an alternative date agreed by the supplier and recipient.
6: If a supply of goods made under the exercise of a power is treated under section 5(2)
a: issue taxable supply information under subsection (1) or (3) for the person treated as being the supplier, as if the supplier were a registered person; and
b: if the supplier is not a registered person, include the supplier’s tax file number in the information instead of a registration number.
7: A supplier is not required to provide taxable supply information under subsection (1) or (3) for a taxable supply if subsection (8) does not apply and 1 or more of—
a: the amount of consideration for the supply does not exceed an amount (the threshold amount
b: the supplier is a non-resident supplier who makes a supply of distantly taxable goods to which section 8(3)﻿(ab)
c: the supplier is a non-resident supplier who makes a supply of remote services to which section 8(3)﻿(c)
8: A supplier is required to provide taxable supply information under subsection (1) or (3) for a taxable supply if section 8(4F)
9: A non-resident supplier who makes a supply of distantly taxable goods to which section 8(3)﻿(ab)
a: the supply is not of a contract of insurance; and
b: the supply of goods or services was incorrectly treated—
i: under section 8(4D) or (4E)
ii: under section 11A(1)﻿(x)
c: the value of the supply, in New Zealand currency as at the time of the supply, does not exceed $1,000; and
d: the recipient either or both—
i: notifies the supplier that the recipient is a registered person:
ii: provides the supplier with the registration number or New Zealand business number of the recipient.
10: Where the Commissioner is satisfied that there are or will be sufficient records available to establish the particulars of any supply or class of supplies, and that it would be impractical to require that taxable supply information be provided under this section, the Commissioner may determine that, for a supplier or a class of suppliers, subject to any conditions that the Commissioner may consider necessary,—
a: any 1 or more of the particulars specified in section 19E(2)
b: taxable supply information is not required to be provided. Section 19K inserted 1 April 2023 section 19(1) section 19(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
19L: Taxable supply information: supplies by member of GST group or supplier group
1: Taxable supply information for a member supply made by an active member of a GST group under section 55
a: either—
i: the name and registration number of the supplier; or
ii: the name and registration number of the representative member of the GST group; and
b: the other information that would be required if the supplier were not a member of a GST group.
2: Taxable supply information for a member supply made by a supplying member of a supplier group under section 55B
a: either—
i: the name and registration number of the supplier; or
ii: the name and registration number of the issuing member for the supplier group; and
b: the other information that would be required if the supplier were not a member of a supplier group.
3: Taxable supply information for a member supply made by an active member of a GST group is treated as being provided by the issuing member for the GST group or by the representative member if the GST group does not have an issuing member.
4: Taxable supply information for a member supply made by a supplying member of a supplier group is treated as being provided by the issuing member for the supplier group. Section 19L inserted 1 April 2023 section 19(1) section 19(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
19M: Taxable supply information: goods included in supplies of distantly taxable goods
1: A registered person who makes a supply of distantly taxable goods at a price that includes tax under section 8(1)
2: The taxable supply information required by subsection (1) is—
a: the taxable supply information that would be required if the goods supplied were not distantly taxable goods and not imported with distantly taxable goods:
b: the date upon which the receipt is issued:
c: information indicating the items for which the amount of tax included is more than zero:
d: information indicating the items for which the amount of tax included is zero.
3: The consideration for the goods may be expressed in the currency of the consideration received by the supplier.
4: A registered person who omits to issue taxable supply information for a supply as required by subsection (1) and is requested by the recipient of the supply to provide taxable supply information for the supply must provide the information within 10 working days after the request. Section 19M inserted 1 April 2023 section 19(1) section 19(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
19N: Supply correction information
1: This section applies where a registered person has previously issued taxable supply information that includes an inaccuracy.
2: Where a registered person has provided to a person (the recipient
3: A registered person is not required to provide supply correction information under subsection (2) for a supply if—
a: the tax shown in the taxable supply information for the supply exceeds the tax charged on the supply; and
b: the excess arises as a result of the recipient’s accepting a discount offered by the supplier—
i: for prompt payment, and the terms of the prompt payment discount offer are stated in the taxable supply information; or
ii: by agreement, and, if the terms of the agreement are not part of the usual business terms between the recipient and the supplier, the terms of the agreement are recorded by the recipient and supplier.
4: A registered person is not required to provide supply correction information under subsection (2) for a supply because part of the consideration shown in the taxable supply information for the supply has been rebated under a Pharmac agreement to Pharmac, whether Pharmac is acting on its own account or as an agent for a public authority.
5: A registered person who has received a taxable supply from another registered person (the supplier
a: the registered person and the supplier agree that—
i: the supplier will not issue supply correction information under subsection (2) for taxable supplies by the supplier to the registered person to which the agreement relates; and
ii: the registered person will issue supply correction information, for each taxable supply by the supplier to the registered person to which the agreement relates; and
b: the registered person and the supplier record the reasons for entering the agreement if the terms of the agreement are not part of the normal terms of business between the registered person and the supplier; and
c: the Commissioner does not, before the supply correction information is issued, invalidate the agreement because the Commissioner considers that the registered person and the supplier have failed to comply with the agreement or with paragraph (b).
6: A supplier may issue supply correction information under subsection (2) to a recipient if—
a: the supply correction information relates to taxable supply information issued by the registered person for taxable supplies, or a class or classes of taxable supplies, made to the recipient, or to a class or classes of recipients that include the recipient; and
b: the supplier’s records show that the information provided to the recipient, in the supply correction information and the taxable supply information for the supply, includes the details required under subsection (2) for each supply to the recipient to which the supply correction information relates.
7: Supply correction information for a supply may not be issued under subsection (2) after whichever of the following is the date that is, or is the earlier of the dates that are, applicable to the supply:
a: if the supply is not described in paragraph (b), the date that is 4 years from the end of the taxable period in which the registered person provides the return for the taxable period in which the supply was made:
b: if the supply gives rise to an overpayment of tax that is described in section 45(1), (2), or (3)
c: if the supply was not zero-rated, because section 11(1)﻿(mb)
8: If a person claims to have lost supply correction information, the registered person who issued the information may provide a copy to the person.
9: Where the Commissioner is satisfied that there are or will be sufficient records available to establish the particulars of any supply or class of supplies, and that it would be impractical to require that supply correction information be provided under this section, the Commissioner may determine that, subject to any conditions that the Commissioner may consider necessary,—
a: any 1 or more of the particulars specified in section 19E(1)
b: supply correction information is not required to be provided. Section 19N inserted 1 April 2023 section 19(1) section 19(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
19O: Treatment of fractional amounts of cent in information
1: For taxable supply information or supply correction information that is required to show an amount of tax consisting of a number of dollars and cents together with a fraction or part of a cent, the fraction or part of the cent,—
a: if less than or equal to half of a cent, may be disregarded:
b: if more than half of a cent, may be shown as being equal to 1 cent.
2: A registered person may apply subsection (1) to—
a: each individual amount of tax relating to a supply; or
b: a total of individual amounts of tax relating to a supply.
3: A registered person must consistently apply 1 of the alternative approaches given by subsection (2) for a taxable period in which the registered person relies on subsection (1). Section 19O inserted 1 April 2023 section 19(1) section 19(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
19P: Commissioner may approve use of symbols, etc, on electronically transmitted information
1: The Commissioner may, for the purpose of facilitating the electronic transfer of supply information and supply correction information, approve the use of symbols, abbreviations, or other notations to represent any particulars required in taxable supply information or supply correction information that is transferred electronically.
2: An approval under subsection (1) may do 1 or more of the following:
a: apply generally, or to a registered person or class of registered persons specified by the Commissioner:
b: be limited to the cases and be subject to the conditions that the Commissioner thinks are appropriate:
c: be withdrawn or varied by the Commissioner at any time on the giving of such notice as is reasonable in the circumstances.
3: An approval under subsection (1) is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must publish it in accordance with the Legislation (Publication) Regulations 2021 LA19 s 74(1)﻿(aa) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 19P inserted 1 April 2023 section 19(1) section 19(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
19Q: References to tax invoice, credit note, and debit note
1: A reference in a document to a tax invoice is to be read as including a reference to taxable supply information to the extent necessary to reflect sensibly the intent of the document.
2: A reference in a document to a credit note is to be read as including a reference to supply correction information to the extent necessary to reflect sensibly the intent of the document.
3: A reference in a document to a debit note is to be read as including a reference to supply correction information to the extent necessary to reflect sensibly the intent of the document.
4: A reference in a document to a buyer-created tax invoice is to be read as including a reference to taxable supply information as described in section 19K(4) Section 19Q inserted 1 April 2023 section 19(1) section 19(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Calculation of tax payable: deductions, apportionment, other adjustments Heading inserted 30 March 2022 section 20 Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
20: Calculation of tax payable
1: In respect of each taxable period every registered person shall calculate the amount of tax payable by that registered person in accordance with the provisions of this section.
2: A registered person, when including an amount for a supply of goods or services as a deduction in a calculation of an amount of tax payable by the registered person, must,—
a: for a supply, meet the requirements of section 19F
b: for a supply that a registered person intends to claim a deduction for under section 20(3) section 25(2)﻿(b) provided supply correction information if required by section 19N
c: for a supply, other than a taxable supply, of secondhand goods, meet the requirements of section 19H
d: for a supply that the registered person treats as being within section 5B
i: the supply meets the requirements for treatment under section 5B
ii: the registered person accounts for the output tax charged for the supply; and
e: for a supply that the registered person treats as being made to the registered person as a nominated person under section 60B
i: the registered person is nominated to be the recipient of the supply by another person (the nominator
ii: the nominator and the registered person agree that the supply is to be treated as being made to the registered person and record the agreement; and
iii: the registered person pays to the supplier the full consideration for the supply.
3: Subject to this section, in calculating the amount of tax payable in respect of each taxable period, there shall be deducted from the amount of output tax of a registered person attributable to the taxable period—
a: in the case of a registered person who is required to account for tax payable on an invoice basis pursuant to section 19 amount of the following:
i: input tax (not being a supply of secondhand goods to which section 3A(1)﻿(c)
ia: input tax section 3A(1)﻿(c)
ii: input tax invoiced or paid, whichever is the earlier, section 12 taxable period
iii: any amount calculated in accordance with any one of sections 25(2)﻿(b) 25AA(2)﻿(b)
b: in the case of a registered person who is required to account for tax payable on a payments basis or a hybrid basis section 19 amount of the following:
i: input tax section 9(1) or section 9(3)﻿(aa)
ii: input tax section 12
iii: input tax applies
iv: any amount calculated in accordance with any one of sections 25(2)﻿(b) 25AA(2)﻿(b)
bb: in the case of a registered person, an amount equal to the tax fraction of an amount of regional fuel tax rebate the person pays under section 65ZC
bc: an amount equal to the tax fraction of a regional fuel tax rebate that the New Zealand Transport Agency pays to an unregistered person under the Land Transport Management Act 2003
c:
d: an amount equal to the tax fraction of any payment made during the taxable period by that registered person to provided that this paragraph—
i: shall only apply where the supply of that contract of insurance is a taxable supply , or where the supply of that contract of insurance would have been a taxable supply if the time of performance of that supply had been on or after 1 October 1986
ii: shall not apply where that payment is in respect of the supply of goods and services to the registered person or the importation of any goods by that registered person; and
iii: shall not apply where the supply of that contract of insurance is a supply charged with tax at the rate of 0% pursuant to section 11 11A 11B a non-resident
iv: shall not apply where that payment results from a supply of goods and services to that other person where those goods are situated outside New Zealand or those services are physically performed outside New Zealand at the time of that supply:
iva: does not apply if the payment is made to a person who, on the date the payment is made, is not a registered person and is a non-resident
v: does not apply where that payment is made in respect of any entitlement for any loss of earnings (being earnings within the meaning of the Accident Compensation Act 1982 or the Accident Rehabilitation and Compensation Insurance Act 1992 or the Accident Insurance Act 1998 or the Accident Compensation Act 2001
vi: does not apply to the supply of a contract of insurance when the supplier is not required to account for output tax on the supply:
vii: does not apply to the supply of a contract of insurance that is zero-rated under section 11A(1)﻿(x)
da:
db: an amount equal to the tax fraction of the payment of a recovered amount to which section 5(13B)
dc: an amount of output tax charged on a supply of remote services to the extent that the supplier has, in relation to the supply, incurred liability for, returned, and paid a consumption tax in another country or territory, when the remote services are—
i: physically performed in New Zealand; and
ii: supplied to a non-resident person in New Zealand who is not a registered person; and
dd: an amount of output tax charged on a supply of distantly taxable goods to the extent that the supplier has, in relation to the supply, incurred liability for, returned, and paid, a consumption tax in another country or territory when the goods are supplied to a person in New Zealand who is not a registered person; and
e: any amount calculated under sections 21D(1) and (3)﻿(a) 21F 21FB(2)
ea:
f: any amount of input tax in relation to any supply in respect of which section 19F taxable supply information
g: any amount calculated in accordance with section 20A period; and
h: any amount calculated in accordance with section 20C
hb: an amount calculated in accordance with section 20G
hc: an amount calculated in accordance with section 21HC
hd: the amount given by section 20H
i: any amount calculated in accordance with section 26 provided that a registered person who is entitled to deduct an amount from the output tax attributable to a taxable period may deduct that amount from the output tax attributable to a later taxable period if the amount has not previously been deducted from the output tax of the registered person and—
a: the later tax period begins on or before the date that is the second anniversary of the earlier of the following:
i: the date on which the registered person makes the payment for the taxable supply to which the deduction relates:
ii: the date on which taxable supply information
b: the failure of the registered person to make the deduction in the earlier taxable period arises from—
i: an inability of the registered person to obtain taxable supply information
ii: a dispute over the proper amount of the payment for the taxable supply to which the deduction relates:
iii: a mistaken understanding on the part of the registered person that the supply to which the deduction relates was not a taxable supply:
iv: a clear mistake or simple oversight of the registered person.
3A: For the purpose of subsection (3), output tax does not include the tax on the taxable value of a fringe benefit provided or granted to another person under the FBT rules of the Income Tax Act 1994
3AB:
3B:
3C: For the purposes of subsection (3), and if subsections (3CB), (3CC), (3D), (3L), or (3LB)
a: input tax as defined in section 3A(1)﻿(a) or (c) intended to be used in
b: input tax as defined in section 3A(1)﻿(b) intended to be used in
i: the delivery of the goods to a person in New Zealand:
ii: arranging or making easier the delivery of the goods to a person in New Zealand.
3CB: A registered person, other than a person who has agreed an apportionment method with the Commissioner under section 20(3E) 21(4)
3CC: A registered person referred to in subsection (3CB) may deduct input tax if they acquired the goods and services for the principal purpose of making taxable supplies.
3CD: A person to whom subsection (3CC) applies may not apportion input tax for an adjustment period, for the goods and services, between taxable and non-taxable use.
3CE: For the purposes of subsection (3CC), a registered person may not deduct input tax as defined in section 3A(1)﻿(b)
a: for a registered person that is a resident, the goods or services are used for making taxable supplies that are the delivery, or arranging or making easier, the delivery of goods to a person in New Zealand; or
b: for a registered person that is a non-resident, the input tax is for imported goods of the type referred to in section 20(3LC)
3CF: For the purposes of subsection (3CC), all supplies made by a non-resident are treated as if they were made and received in New Zealand.
3CG: A person may elect not to apply subsections (3CB) and (3CC) if they—
a: opt-out from applying the subsections for at least 24 consecutive months from the date they first opt-out:
b: apply an apportionment method that is agreed between the Commissioner and an industry association of which the person is a member:
c: apply an apportionment method that is available to them in a publication by the Commissioner.
3CH: A person who makes an election under subsection (3CG) must apply subsection (3CG) to all goods and services acquired by them.
3D: A registered person who makes both taxable and exempt supplies is not required to apportion input tax for an adjustment period between such supplies if the registered person has reasonable grounds to believe that the total value of exempt supplies will not exceed the lesser of—
a: $90,000:
b: 5% of the total consideration for all their taxable and exempt supplies for the adjustment period.
3E: A registered person who principally makes supplies of financial services may choose to use a fair and reasonable method of apportionment, as agreed with the Commissioner, in relation to the supply for an apportionment on acquisition. For this purpose, the person may include a group of companies.
3EB: A registered person may choose to use, for apportioning input tax in relation to a supply of goods and services made to the registered person, a fair and reasonable method of apportionment that is—
a: agreed with the Commissioner by the registered person:
b: agreed with the Commissioner by an industry association, if the method is intended by the Commissioner and the industry association to be available to a person such as the registered person:
c: published by the Commissioner and is available to the person in that publication.
3F: The method used to calculate the amount that may be deducted on acquisition is set out in subsections (3C) to (3EB), and (3G) to (3M) sections 21 to 21H
3G: In determining the extent to which goods or services are used for making taxable supplies, a person must estimate at the time of acquisition how they intend to use the goods or services, choosing a determination method that provides a fair and reasonable result. The determination is expressed as a percentage of the total use.
3H: The extent to which a deduction for input tax is allowed is calculated using the formula— full input tax deduction × percentage intended use.
3I: In the formula in subsection (3H),—
a: full input tax deduction
b: percentage intended use section 21G(1)﻿(b)
3J: For a supply to which section 11(1)﻿(m) or (mb)
a: on acquisition,—
i: identify the nominal amount of tax (the nominal GST component section 8(1)
ii: determine the extent to which they intend to use the goods or services as described in subsection (3G); and
iii: determine the amount that is the same proportion of the nominal GST component as the proportion of the use of the goods and services that is non-taxable use; and
iv: attribute as output tax to a taxable period under subsection (4)—
A: the amount determined under subparagraph (iii); or
B: the nominal GST component calculated by section 20(3J)﻿(a)﻿(i) section 14(4)
b: for later adjustment periods, make adjustments under the apportionment rules set out in sections 20G 21 to 21H
3JB: For a supply to which section 20G
a: on acquisition,—
i: identify the nominal amount of tax that would be chargeable on the value of the supply, as if the value were equal to the consideration charged for the supply, at the rate set out in section 8(1)
ii: determine the extent to which they intend to use the goods, as described in subsection (3G); and
iii: account for input tax for the amount calculated under subsections (3G) and (3H); and
b: make adjustments under section 20G(4) and (5)
3JC: For a supply of remote services to which section 11A(1)﻿(j) or (x)
a: estimates at the time of acquisition that the percentage intended use of the services is less than 95%, then the recipient must, on acquisition—
i: identify the nominal amount of tax (the nominal GST component section 8(1)
ii: based on the percentage intended use of the services, account for output tax under subsection (4) for the proportion of the nominal GST component for any non-taxable use of the services:
b: determines at the end of an adjustment period that the percentage actual use of the services is less than 95%, then the recipient must, at the end of the adjustment period—
i: identify the nominal GST component that would have been chargeable on the value of the supply, as if the value were equal to the consideration charged for the supply, at the rate set out in section 8(1)
ii: based on their percentage actual use of the services, account for output tax under subsection (4) for the proportion of the nominal GST component for any non-taxable use of the services:
c: is required to account for output tax under paragraph (a) or (b), then the recipient must, for later adjustment periods, make adjustments under the apportionment rules set out in sections 20G 21 to 21H
3K: If a registered person who is a non-profit body resident in New Zealand uses goods and services in the course or furtherance of an activity that is not a taxable activity, the goods and services are treated as being used in the course or furtherance of the taxable activity of the registered person—
a: to the extent that the goods and services are not used for the making of exempt supplies; and
b: if the goods and services are not excluded from the effect of this subsection by an election of the registered person under subsection (3KB).
3KB: If a registered person is a non-profit body resident in New Zealand that carries on an activity that is not a taxable activity and in the course or furtherance of the activity the registered person receives supplies of goods and services, for use solely in relation to the activity and to which subsection (3K) would apply in the absence of this subsection, and the registered person makes an election under this subsection,—
a: the supplies used in the course or furtherance of the activity are excluded from the effect of subsection (3K) after a date (the election date section 20(3) and (3K)
b: each asset used in the activity is treated as being disposed of on the election date in the course or furtherance of the taxable activity and being reacquired on the election date for use in the course or furtherance of an activity that is not a taxable activity.
3KC: A registered person makes an election under subsection (3KB) for supplies used in relation to an activity by—
a: notifying the Commissioner on or before the election date, in a way acceptable to the Commissioner, of—
i: the election; and
ii: the election date; and
iii: the information required by the Commissioner relating to the election; and
b: including in a return for the taxable period in which the election date occurs an amount of output tax on the disposal of each asset referred to in subsection (3KB)﻿(b) equal to the tax on a taxable supply having a value equal to the total of—
i: each amount, which may be estimated using a method acceptable to the Commissioner if adequate records are not available, that affects under subsection (3K) the calculation of the registered person’s input tax before the election date and is included in the cost of the asset; and
ii: each amount arising from the asset, which may be estimated using a method acceptable to the Commissioner if adequate records are not available, that affects under subsection (3K) the calculation of the registered person’s input tax before the election date and is included in the operating costs of the asset in the period of 7 years before the election date.
3L: For the purposes of subsection (3), and if subsections (3CB) and (3CC) do not apply section 3A(1)﻿(a) or (c) uses the goods and services for, or intends the goods or services for use in, making taxable supplies, treating all the supplies made by the person as if they are made and received in New Zealand
3LB: For the purposes of subsection (3), and if subsections (3CB) and (3CC) do not apply, section 3(1)﻿(b)
3LC: A registered person who is non-resident may not deduct input tax as defined in section 3A(1)﻿(b)
a: supplied to a person (the recipient
i: is not a registered person; or
ii: is a registered person and the supply is not for use in a taxable activity of the recipient; and
b: outside New Zealand at the time of supply.
3M: Despite subsection (3L), a non-resident person who is registered under section 54B
4: For the purpose of subsection (3), output tax in relation to a supply made by a registered person must be attributed to a taxable period—
a: in the case of a registered person who is required to account for tax payable on an invoice or a hybrid basis under section 19
b: in the case of a registered person who is required to account for tax payable on a payments basis under section 19
i: to the extent that payment for the supply has been received during the taxable period, if the supply is a supply of goods and services which is deemed to take place under any one of sections 9(1) 25(2)﻿(a) 25(4) section 8(4B)
ib: to the extent that payment for the supply has been made during the taxable period, if the supply is a supply of services that is treated as being made in New Zealand by section 8(4B) sections 9(1) 25AA(2)﻿(a)
ii: if the supply of goods and services is made during the taxable period by the registered person and neither of subparagraphs (i) and (ib) applies; or
c: in the case of a registered person who is required to account for tax payable under section 21D(1) and (3)﻿(b) or 21FB(4)﻿(b) period; or
d: in the case of a registered person who elected to return output tax under section 91(3)
4B: A person who is treated under section 5(23B) section 11(1)﻿(mb) section 5(23B) who is either a registered person or later becomes a registered person
4C: For a supply of distantly taxable goods by a non-resident to which section 8(3)﻿(ab) taxable supply information section 24(5B) or (5BB)
4D: Subsection (4C) does not apply to a supply of distantly taxable goods to which section 8(3)﻿(ab) section 5B recipient, if
5: If, in relation to any taxable period and any registered person, the total amount that may be deducted under subsection (3) section 46 Section 20(2) replaced 31 March 2023 section 137(1) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(2)﻿(a) amended 1 April 2023 section 137(2)﻿(a) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(2)﻿(b) amended 1 April 2023 section 137(3) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(2)﻿(c) amended 1 April 2023 section 137(2)﻿(b) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(3)﻿(a) amended 25 November 2003 section 154(3)﻿(a) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20(3)﻿(a)﻿(i) amended 25 November 2003 section 154(3)﻿(b) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20(3)﻿(a)﻿(i) amended 10 October 2000 section 99(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 20(3)﻿(a)﻿(i) amended 22 March 1989 Goods and Services Tax Amendment Act 1989 Section 20(3)﻿(a)﻿(ia) inserted 22 March 1989 Goods and Services Tax Amendment Act 1989 Section 20(3)﻿(a)﻿(ia) amended 25 November 2003 section 154(3)﻿(c) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20(3)﻿(a)﻿(ia) amended 10 October 2000 section 99(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 20(3)﻿(a)﻿(ii) amended 25 November 2003 section 154(3)﻿(d) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20(3)﻿(a)﻿(ii) amended 1 October 1996 section 289(1) Customs and Excise Act 1996 Section 20(3)﻿(a)﻿(ii) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 20(3)﻿(a)﻿(ii) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 20(3)﻿(a)﻿(iii) substituted 25 November 2003 section 154(3)﻿(e) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20(3)﻿(b) amended 25 November 2003 section 154(4)﻿(a) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20(3)﻿(b) amended 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 20(3)﻿(b)﻿(i) amended 25 November 2003 section 154(4)﻿(b) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20(3)﻿(b)﻿(i) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 20(3)﻿(b)﻿(ii) amended 25 November 2003 section 154(4)﻿(c) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20(3)﻿(b)﻿(ii) amended 1 October 1996 section 289(1) Customs and Excise Act 1996 Section 20(3)﻿(b)﻿(iii) amended 25 November 2003 section 154(4)﻿(d) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20(3)﻿(b)﻿(iii) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 20(3)﻿(b)﻿(iv) substituted 25 November 2003 section 154(4)﻿(e) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20(3)﻿(bb) inserted 18 March 2019 section 301(1) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 20(3)﻿(bc) inserted 18 March 2019 section 301(1) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 20(3)﻿(c) repealed 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 20(3)﻿(d) amended 10 October 2000 section 99(2) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 20(3)﻿(d) proviso amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 20(3)﻿(d) proviso added 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 20(3)﻿(d) proviso amended 25 November 2003 section 154(5) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20(3)﻿(d) proviso amended 10 October 2000 section 99(3) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 20(3)﻿(d) proviso added 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 20(3)﻿(d) proviso inserted 10 October 2000 section 99(5) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 20(3)﻿(d) proviso amended 25 November 2003 section 154(5) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20(3)﻿(d) proviso substituted 19 December 1998 Accident Insurance Act 1998 Section 20(3)﻿(d) proviso amended 2 November 2012 section 214(1) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 20(3)﻿(d) proviso amended 3 March 2010 section 5(1)﻿(b) Accident Compensation Amendment Act 2010 Section 20(3)﻿(d) proviso amended 1 April 2002 section 338 Accident Compensation Act 2001 Section 20(3)﻿(d) proviso inserted 2 November 2012 section 214(1) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 20(3)﻿(d) proviso subparagraph (vi) amended 1 October 2016 section 60(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 20(3)﻿(d) proviso subparagraph (vii) inserted 1 October 2016 section 60(2) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 20(3)﻿(da) repealed 1 August 1990 section 8(1) Goods and Services Tax Amendment Act 1990 Section 20(3)﻿(db) inserted 10 October 2000 section 99(4) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 20(3)﻿(dc) inserted 1 October 2016 section 60(3) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 20(3)﻿(dd) inserted 1 December 2019 section 21(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 20(3)﻿(e) substituted 1 April 2011 section 14(2) Taxation (GST and Remedial Matters) Act 2010 Section 20(3)﻿(e) amended 30 March 2017 section 356(1) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 20(3)﻿(ea) repealed 10 October 2000 section 99(7) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 20(3)﻿(f) amended 1 April 2023 section 21(3)﻿(a) section 21(11) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 20(3)﻿(f) amended 1 April 2023 section 21(3)﻿(b) section 21(11) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 20(3)﻿(g) added 24 March 1988 Goods and Services Tax Amendment Act 1988 Section 20(3)﻿(g) amended 25 November 2003 section 154(6) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20(3)﻿(h) added 25 November 2003 section 154(6) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20(3)﻿(hb) inserted 17 July 2013 section 130(1) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 20(3)﻿(hc) inserted 24 February 2016 section 276 Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 Section 20(3)﻿(hd) inserted 1 April 2017 section 356(2) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 20(3)﻿(i) added 25 November 2003 section 154(6) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20(3) substituted 21 December 2004 section 149(1) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 Section 20(3) amended 1 April 2023 section 21(4)﻿(a) section 21(11) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 20(3) amended 1 April 2023 section 21(4)﻿(b) section 21(11) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 20(3) repealed 24 March 1988 Goods and Services Tax Amendment Act 1988 Section 20(3) repealed 24 March 1988 Goods and Services Tax Amendment Act 1988 Section 20(3A) substituted 27 March 2001 section 64(1) Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 Section 20(3AB) repealed 10 October 2000 section 99(7) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 20(3B) repealed 10 October 2000 section 99(7) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 20(3C) replaced 2 November 2012 section 214(2) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 20(3C) amended 1 April 2023 section 137(7) section 137(30) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(3C) amended 1 April 2014 section 130(2) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 20(3C)﻿(a) amended 31 March 2023 section 137(8) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(3C)﻿(b) amended 31 March 2023 section 137(9) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(3CB) inserted 1 April 2023 section 137(10) section 137(30) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(3CC) inserted 1 April 2023 section 137(10) section 137(30) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(3CD) inserted 1 April 2023 section 137(10) section 137(30) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(3CE) inserted 1 April 2023 section 137(10) section 137(30) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(3CF) inserted 1 April 2023 section 137(10) section 137(30) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(3CG) inserted 1 April 2023 section 137(10) section 137(30) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(3CH) inserted 1 April 2023 section 137(10) section 137(30) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(3D) inserted 1 April 2011 section 14(3) Taxation (GST and Remedial Matters) Act 2010 Section 20(3D) amended 30 March 2017 section 356(3) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 20(3E) replaced 1 April 2023 section 137(11) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(3EB) replaced 1 April 2023 section 137(12) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(3F) inserted 1 April 2011 section 14(3) Taxation (GST and Remedial Matters) Act 2010 Section 20(3F) amended 30 March 2017 section 356(6) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 20(3G) inserted 1 April 2011 section 14(3) Taxation (GST and Remedial Matters) Act 2010 Section 20(3H) inserted 1 April 2011 section 14(3) Taxation (GST and Remedial Matters) Act 2010 Section 20(3I) inserted 1 April 2011 section 14(3) Taxation (GST and Remedial Matters) Act 2010 Section 20(3J) inserted 1 April 2011 section 14(3) Taxation (GST and Remedial Matters) Act 2010 Section 20(3J) amended 30 March 2022 section 21(6) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 20(3J)﻿(a)﻿(iii) replaced 30 March 2022 section 21(7) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 20(3J)﻿(a)﻿(iv) replaced 1 April 2023 section 137(13) section 137(30) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(3J)﻿(b) amended 17 July 2013 section 130(3) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 20(3JB) inserted 17 July 2013 section 130(4) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 20(3JC) inserted 1 October 2016 section 60(4) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 20(3K) replaced 18 March 2019 section 301(2) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 20(3KB) inserted 18 March 2019 section 301(2) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 20(3KC) inserted 18 March 2019 section 301(2) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 20(3L) replaced 30 March 2022 section 21(8) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 20(3L) amended 1 April 2023 section 137(18) section 137(30) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(3L) amended 31 March 2023 section 137(19) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(3L) amended 31 March 2023 section 137(20) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(3LB) replaced 31 March 2023 section 137(21) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(3LB) amended 1 April 2023 section 137(22) section 137(30) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(3LC) replaced 30 March 2022 section 21(8) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 20(3M) inserted 1 April 2014 section 130(6) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 20(4) substituted 10 October 2000 section 99(8) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 20(4)﻿(b)﻿(i) amended 25 November 2003 section 154(7)﻿(a) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20(4)﻿(b)﻿(ib) inserted 25 November 2003 section 154(7)﻿(a) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20(4)﻿(b)﻿(ii) substituted 25 November 2003 section 154(7)﻿(b) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20(4)﻿(b)﻿(ii) amended 1 April 2011 section 14(4) Taxation (GST and Remedial Matters) Act 2010 Section 20(4)﻿(c) added 1 April 2011 section 14(4) Taxation (GST and Remedial Matters) Act 2010 Section 20(4)﻿(c) amended 1 April 2023 section 137(24) section 137(31) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(4)﻿(c) amended 1 April 2023 section 137(25) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(4)﻿(c) amended 30 March 2017 section 356(9) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 20(4)﻿(d) inserted 1 April 2023 section 137(25) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(4B) inserted 1 April 2011 section 14(5) Taxation (GST and Remedial Matters) Act 2010 Section 20(4B) amended 1 April 2023 section 137(26) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 20(4B) amended 30 June 2014 section 190(3) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 20(4C) inserted 1 October 2016 section 60(5) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 20(4C) amended 1 April 2023 section 21(9) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 20(4C) amended 1 December 2019 section 21(5) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 20(4C) amended 1 December 2019 section 21(6) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 20(4D) inserted 1 October 2016 section 60(5) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 20(4D) amended 1 December 2019 section 21(7)﻿(a) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 20(4D) amended 1 December 2019 section 21(7)﻿(b) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 20(5) amended 10 October 2000 section 99(9) Taxation (GST and Miscellaneous Provisions) Act 2000
20A: Goods and services tax incurred relating to determination of liability to tax
1: For the purposes of this section,— goods and services tax payable
a: means an amount of goods and services tax calculated in accordance with sections 19 to 20
b: includes—
i: any amount referred to in section 17(2) section 51B
ii: any amount refundable by the Commissioner pursuant to section 19C section 20 taxable income tax year taxpayer section YA 1
2: Subject to this section, any goods and services acquired by the registered person in connection with—
a: the calculation of the taxable tax year
b: the calculation or determination of the goods and services tax payable by the registered person for any taxable period:
c: the preparation, institution, or presentation of an objection or challenge Tax Administration Act 1994
d: any contribution by the registered person towards the expenditure incurred by any other taxpayer or registered person, as the case may be, where—
i: if the expenditure were incurred by the first-mentioned registered person, it would be an allowable deduction in calculating the taxable income of that person or allowable in the calculation or determination of any goods and services tax payable by that person; and
ii: the first-mentioned registered person has objected to, or challenged Income Tax Act 1976 or the Tax Administration Act 1994 shall be deemed to be goods and services acquired by the registered person for making taxable supplies section 20(3)
3: This section shall not apply in relation to any goods and services acquired by the registered person in connection with—
a: any matter or assessment arising from a return (being a return of income furnished under the provisions of the Income Tax Act 1976 or the Tax Administration Act 1994
b: any offence under any of the Inland Revenue Acts:
c: any assessment of penal tax under the Income Tax Act 1976 or the Tax Administration Act 1994
ca: any assessment of a shortfall penalty under the Tax Administration Act 1994
d: any objection or challenge or
4: Any amount received by the registered person at any time, whether by way of reimbursement, award of the court, recovery, or otherwise howsoever in respect of goods and services deemed under this section to be acquired by the registered person with the intention of using the supply for making taxable supplies Section 20A inserted 24 March 1988 Goods and Services Tax Amendment Act 1988 Section 20A(1) assessable income income year taxpayer repealed 26 July 1996 Taxation (Core Provisions) Act 1996 Section 20A(1) goods and services tax payable amended 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 20A(1) goods and services tax payable amended 21 December 2004 section 150(1) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 Section 20A(1) goods and services tax payable amended 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 20A(1) taxable income income year taxpayer inserted 26 July 1996 Taxation (Core Provisions) Act 1996 Section 20A(1) taxable income tax year taxpayer amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 20A(1) taxable income tax year taxpayer amended 1 April 2005 section YA 2 Income Tax Act 2004 Section 20A(2) amended 2 November 2012 section 215 Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 20A(2)﻿(a) amended 1 April 2005 section YA 2 Income Tax Act 2004 Section 20A(2)﻿(a) amended 26 July 1996 Taxation (Core Provisions) Act 1996 Section 20A(2)﻿(c) amended 1 October 1996 section 3(1)﻿(a) Goods and Services Tax Amendment Act 1996 Section 20A(2)﻿(c) 26 July 1996 Taxation (Core Provisions) Act 1996 Section 20A(2)﻿(d)﻿(i) substituted 26 July 1996 Taxation (Core Provisions) Act 1996 Section 20A(2)﻿(d)﻿(ii) amended 1 October 1996 section 3(1)﻿(b) Goods and Services Tax Amendment Act 1996 Section 20A(2)﻿(d)﻿(ii) amended 26 July 1996 Taxation (Core Provisions) Act 1996 Section 20A(3)﻿(a) amended 26 July 1996 Taxation (Core Provisions) Act 1996 Section 20A(3)﻿(c) amended 26 July 1996 Taxation (Core Provisions) Act 1996 Section 20A(3)﻿(ca) inserted 26 July 1996 section 3(2) Goods and Services Tax Amendment Act 1996 Section 20A(3)﻿(d) amended 1 October 1996 section 3(3) Goods and Services Tax Amendment Act 1996 Section 20A(4) amended 18 March 2019 section 302 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
20B: Allocation of taxable supplies following investigation by Commissioner
1: For the purposes of this section— discrepancy specified period tax discrepancy
2: For the purposes of this Act, in any case where, upon investigation by the Commissioner of the liability of a registered person for tax, the Commissioner has calculated or otherwise ascertained a discrepancy in relation to any specified period then,—
a: subject to paragraphs (b) and (c), the amount of the discrepancy shall be deemed to be taxable supplies made or received (as the case may be) by the registered person at a uniform daily rate throughout that specified period, and those taxable supplies shall be deemed to have been so made or received by the registered person in the taxable periods, or parts thereof, included in the specified period:
b: subject to paragraph (c), where the Commissioner is satisfied that the registered person did not carry on the taxable activity for any part of any specified period, the amount of the discrepancy shall be deemed to be taxable supplies made or received (as the case may be) by the registered person at a uniform daily rate throughout the part of the specified period in which the taxable activity was carried on, and those taxable supplies shall be deemed to be so made or received by the registered person in the taxable periods, or parts thereof, in which the taxable activity was carried on during the specified period:
c: where the registered person satisfies the Commissioner that it would be appropriate for the amount of the discrepancy to be allocated on a basis otherwise than in accordance with paragraph (a) or paragraph (b), the amount of the discrepancy shall be allocated on that basis, and the amount so allocated shall be deemed to be taxable supplies made or received (as the case may be) by the registered person in the taxable periods, or parts thereof, to which the discrepancy has been so allocated.
3: For the purposes of section 20 Section 20B inserted 22 March 1989 Goods and Services Tax Amendment Act 1989
20C: Goods and services tax incurred in making certain supplies of financial services
Subject to this section, a registered person who has made an election under section 20F direct supplier section 20(3)﻿(h) a × (b ÷ c) × (d ÷ e) where— a is the total amount in respect of the taxable period that the registered person—
a: would not be able to deduct under section 20(3)
b: would be able to deduct under section 20(3) b is the total value of exempt supplies of financial services by the registered person to the direct supplier in respect of the taxable period c is the total value of exempt supplies of financial services by the registered person in respect of the taxable period d is the total value of taxable supplies by the direct supplier in respect of the taxable period, determined under section 20D e is the total value of supplies by the direct supplier in respect of the taxable period, determined under section 20D Section 20C inserted 1 January 2005 section 155 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20C substituted 1 January 2005 section 151 Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 Section 20C substituted 7 September 2010 section 192(1) Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010
20D: Determining availability of deduction under section 20C from supplies by another person
If a person makes a return that includes a figure for a deduction under section 20C Section 20D inserted 1 January 2005 section 155 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003
20E: Determining supplies charged at 0% under section 11A(1)﻿(q) and (r) from supplies by another person
If a person makes a return that includes a figure for the value of supplies charged with tax at a rate of 0% under section 11A(1)﻿(q)
a: on the basis of the statistics of the supplies made by the other person; or
b: using a method that is approved by the Commissioner. Section 20E inserted 1 January 2005 section 155 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003
20F: Election that sections 11A(1)﻿(q) and (r) and 20C apply
1: A person person sections 11A(1)﻿(q) and (r) 20C
2: An election under subsection (1)—
a: applies for the taxable period in which the Commissioner receives the notice and for subsequent taxable periods until the election is cancelled:
b: is cancelled from the end of the taxable period—
i: in which the registered person ceases to have a taxable activity, if subparagraphs (ii) and (iii) do not require an earlier cancellation; or
ii: that is nominated in a
iii: in which the Commissioner receives from the registered person a Section 20F inserted 1 January 2005 section 155 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 20F(1) amended 18 December 2006 section 217 Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 Section 20F(1) amended 1 April 2005 section YA 2 Income Tax Act 2004 Section 20F(2)﻿(b)﻿(ii) amended 1 April 2005 section YA 2 Income Tax Act 2004 Section 20F(2)﻿(b)﻿(iii) amended 1 April 2005 section YA 2 Income Tax Act 2004
20G: Treatment of supplies of certain assets
1: A registered person who uses an asset described in section DG 3 section 20(3)﻿(hb) input tax for asset × total income-earning days ÷ (total income-earning days + total private days).
2: In the formula,—
a: input tax for asset
i: related solely to the taxable use of the asset; or
ii: related solely to the non-taxable use of the asset:
b: total income-earning days section DG 3(5)
i: the use made of the asset is described in section DG 4(3) to (5)
ii: the asset has become unavailable for use because another person who had earlier reserved the asset for their own use, subsequently did not take advantage of that reservation:
iii: a fringe benefit tax liability arises:
c: total private days section DG 3(7)
3: A unit of measurement of time other than days, whether relating to hours, or nights, or anything else is to be used in the formula and in subsection (2)﻿(b) and (c), if the use of the unit provides a fair and reasonable result. For this purpose, the same unit must be used in relation to both total income-earning days and total private days.
4: The person must ascertain at the end of an adjustment period whether an adjustment is required to be made for any percentage difference in a supply of the asset for the period in relation to the actual use of the asset for making taxable supplies.
5: If an adjustment is required, the person must, at the end of the adjustment period,—
a: identify the percentage actual use of the asset in accordance with the formula in subsection (1) for making taxable supplies; and
b: compare the percentage actual use with percentage intended use as described in section 20(3JB)
c: if a percentage difference arises, make an adjustment for any percentage difference for the adjustment period, applying section 21D(3)
6: For the purposes of subsection (5), all expenditure incurred in relation to the use of the asset is aggregated and included in the relevant adjustment unless section 21(2)﻿(c) or (d)
7: Sections 8 21F
8: For the purposes of this section, a registered person does not include a widely-held company, as that term is defined in section YA 1 Section 20G inserted 17 July 2013 section 131 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 20G(2)﻿(a)﻿(i) replaced 26 June 2019 section 22 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 20G(2)﻿(a)﻿(ii) replaced 26 June 2019 section 22 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
20H: Goods and services tax incurred in making financial services for raising funds
1: A registered person who makes supplies of financial services referred to in paragraph (a), and is, or intends to be, principally making supplies that would be taxable supplies in the absence of the supplying of the financial services, has a deduction under section 20(3)﻿(hd)
a: the supplies of the financial services (the funding support services group company Income Tax Act 2007
b: the funding support services are not referred to in section 11A(1)﻿(q) and (r)
c: the supplies used in making the supplies of funding support services do not give rise to a deduction under section 20(3)
d: the funding support services are—
i: the issue or allotment of an interest or right (a funding security
ii: the renewal of a funding security:
iii: the payment of an amount of interest, principal, or dividend for a funding security:
iv: the provision or variation of a guarantee of the performance of obligations in the issue, allotment, or renewal of a funding security; and
e: the funding support services fail to raise the funds or do raise funds that are used, or that replace funds that are used, by the registered person or the group company for expenditure in the taxable activity; and
f: the supplies used in making the supplies of funding support services would give rise to a deduction under section 20(3)
1B: If a registered person makes supplies of financial services in the course of raising funds that are or would have been used by the registered person or a group company in both a taxable activity and an activity that is not a taxable activity (the funded activities
2: A non-resident person who is registered under section 54B Section 20H inserted 1 April 2017 section 357 Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 20H(1) replaced 26 June 2019 section 23(1) section 23(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 20H(1)﻿(d) replaced 30 March 2022 section 22(1) section 22(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 20H(1B) inserted 26 June 2019 section 23(1) section 23(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
21: Adjustments for apportioned supplies
1: A registered person must ascertain at the end of an adjustment period whether an adjustment is required to be made for any percentage difference in a supply of goods or services for the period in relation to the actual use of those goods or services for making taxable supplies.
2: Despite subsection (1), the person is not permitted
a: section 20(3D)
ab: the person is a non-resident who has incurred input tax as defined in section 3A(1)﻿(b)
i: exports the goods in or before the adjustment period; and
ii: disposes of the goods overseas in the adjustment period or holds the goods overseas at the end of the adjustment period:
ac: the person has made an adjustment under section 21FB
b: the value of the goods or services, excluding GST, is 10,000
c: the difference between the percentage intended use on acquisition and the percentage actual use for the relevant adjustment period is less than 10 percentage points, but this paragraph does not apply if the adjustment amounts to more than $1,000:
d: the difference between the previous actual use calculated for the most recent adjustment period in which an adjustment was made and the percentage actual use for the relevant adjustment period is less than 10 percentage points, but this paragraph does not apply if the adjustment amounts to more than $1,000 :
e: they intend to apply section 6(3)﻿(e) 91
3: An adjustment arises on the last day of the relevant adjustment period.
4: For an adjustment to which sections 21A to 21H
4B: A registered person may choose to use, for making adjustments to which sections 21A to 21H
a: agreed with the Commissioner by the registered person:
b: agreed with the Commissioner by an industry association, if the method is intended by the Commissioner and the industry association to be available to a person such as the registered person:
c: published by the Commissioner and is available to the person in that publication.
5: In determining the extent of percentage actual use and percentage intended use of a motor vehicle, a registered person may refer to a logbook as provided for in sections DE 6 to DE 11 Section 21 substituted 1 April 2011 section 15(1) Taxation (GST and Remedial Matters) Act 2010 Section 21(2) amended 18 March 2019 section 303 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 21(2)﻿(ab) inserted 30 March 2017 section 358(1) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 21(2)﻿(ac) inserted 30 March 2022 section 23(1) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 21(2)﻿(b) amended 1 April 2023 section 139(1) section 139(6) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 21(2)﻿(d) amended 31 March 2023 section 139(2) section 139(7) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 21(2)﻿(e) inserted 31 March 2023 section 139(3) section 139(7) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 21(4) replaced 1 April 2023 section 139(4) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 21(4B) replaced 1 April 2023 section 139(5) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 21(5) inserted 2 November 2012 section 216 Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012
21A: When adjustments required
A registered person must, at the end of an adjustment period,—
a: identify the percentage actual use of the goods or services in making taxable supplies in the period; and
b: compare the percentage actual use with percentage intended use or previous actual use, as applicable; and
c: if a percentage difference arises and section 21(2)﻿(c) or (d) Section 21A substituted 1 April 2011 section 15(1) Taxation (GST and Remedial Matters) Act 2010 Section 21A(c) amended 2 November 2012 section 217 Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012
21B: Adjustments when
person or partnership
1: This section applies when—
a: before becoming a registered person, a person that is not a unit title body corporate acquires
i: goods or services on which tax has been charged under section 8(1)
ii: goods entered by them for home consumption under the Customs and Excise Act 2018 section 12(1)
iii: secondhand goods—
A: that are supplied to the person by way of sale; and
B: that have always been situated in New Zealand or have had tax levied on them as described in subparagraph (ii); and
C: the supply of which is not a taxable supply; and
b: at the time of registration or at a later time, the person or a partnership of which the person is a member (the registered user
2: The registered person may make an adjustment under section 20G 21 21A initial period
a: starts on the date of the acquisition of the goods or services; and
b: ends on the first balance date that falls after the events referred to in subsection (1)﻿(b).
3: A registered user meets the requirements of this subsection for a supply by—
a: having a record of the details of the supply required by either of—
i: section 19F
ii: section 19H
b: using a method that provides a fair and reasonable result in identifying the percentage actual use of the goods or services in the initial period referred to in subsection (2).
4:
5: In relation to a supply of secondhand goods, the tax fraction applying to the supply is the tax fraction that applied at the time the goods were purchased by the person. Section 21B substituted 1 April 2011 section 15(1) Taxation (GST and Remedial Matters) Act 2010 Section 21B heading amended 29 August 2011 section 239(1) Taxation (Tax Administration and Remedial Matters) Act 2011 Section 21B(1)﻿(a) replaced 2 November 2012 section 218(1) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 21B(1)﻿(a) amended 24 February 2016 section 277 Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 Section 21B(1)﻿(a)﻿(ii) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 21B(1)﻿(b) replaced 1 April 2023 section 24(1) section 24(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 21B(2) amended 1 April 2023 section 24(2) section 24(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 21B(3) replaced 1 April 2023 section 24(3) section 24(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 21B(4) repealed 2 November 2012 section 218(3) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 21B(5) inserted 2 November 2012 section 218(4) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012
21C: Adjustments for first and subsequent adjustment periods
For the purposes of section 21A(b)
a: for the first adjustment period applying to the goods or services, the person must compare the percentage intended use of the goods or services with their percentage actual use:
b: for a subsequent adjustment period, the person must compare the percentage actual use of the goods or services with—
i: their percentage actual use in an earlier period that is the most recent period in which an adjustment has been made (the previous actual use
ii: their percentage intended use, if no adjustment has been made in an earlier period. Section 21C substituted 1 April 2011 section 15(1) Taxation (GST and Remedial Matters) Act 2010
21CB: Rate for change of use before 1 October 2010
Section 21CB repealed 1 April 2011 section 15(1) Taxation (GST and Remedial Matters) Act 2010
21D: Calculating amount of adjustment
1: If a percentage difference arises for an adjustment period, a registered person must make a positive or negative adjustment for the period of an amount calculated using the formula— full input tax deduction × percentage difference.
2: In the formula,—
a: full input tax deduction section 20(3J)﻿(a)﻿(i)
b: percentage difference section 21G(1)﻿(c)
3: For the purposes of subsection (1) and section 20G
a: if the adjustment is positive and the percentage actual use is more than the person's percentage intended use or previous actual use, as applicable, the person is entitled to an additional deduction under section 20(3)﻿(e) or (hb)
b: if the adjustment is negative and the percentage actual taxable use is less than the person's percentage intended use or previous actual use, as applicable, the person must treat the amount as a positive amount of output tax and attribute it to a taxable period under section 20(4) Section 21D substituted 1 April 2011 section 15(1) Taxation (GST and Remedial Matters) Act 2010 Section 21D(3) amended 17 July 2013 section 133(1) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 21D(3)﻿(a) amended 17 July 2013 section 133(2) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 21D(3)﻿(b) amended 30 March 2017 section 359 Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017
21E: Concurrent uses of land
1: This section applies when a registered person simultaneously uses the same area of land during an adjustment period for making concurrent taxable and non-taxable supplies sections 21A 21G
2: This section does not apply if the Commissioner agrees that the registered person may use another calculation method.
3: The extent to which the land is used for making taxable supplies is calculated as a percentage using the formula— (consideration for taxable supply ÷ total consideration for supply) × 100.
4: In the formula in subsection (3),—
a: consideration for taxable supply
i: on a disposal of the land in the adjustment period, the amount paid or payable; or
ii: the market value of the land at the time of making the adjustment:
b: total consideration for supply
i: all rental income that is the consideration for the supply of a dwelling paid or payable since the land was acquired; and
ii: if no rental income is paid or payable in relation to the non-taxable use of the land, the market value of rental income that would have been paid or payable since the land was acquired if the land had been used for this purpose.
5: For the purposes of subsection (4), if the person disposes of the land to an associated person, or if the amount of rental income is not an arm's length amount, subsection (4)﻿(a)﻿(i) and (b)﻿(i) do not apply, and the amount of the consideration is measured under subsection (4)﻿(a)﻿(ii) and (b)﻿(ii).
6: For the purposes of subsection (4)﻿(a)﻿(ii) and (b)﻿(ii), if the market value of the land or the market value of rental income is not readily identifiable, the person may use another method to provide a fair and reasonable estimate of the market value.
7: If a person is required to estimate the extent of taxable use of the land under this section and the land has at any time been used in a month solely for making non-taxable supplies, the person must calculate the percentage use for the adjustment period on a month by month basis, calculated using the formula— (months ÷ total months) × result under subsection (3).
8: In the formula in subsection (7),—
a: months
b: total months Section 21E substituted 1 April 2011 section 15(1) Taxation (GST and Remedial Matters) Act 2010 Section 21E(1) amended 2 November 2012 section 219 Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012
21F: Treatment on disposal
1: This section applies when a registered person—
a: acquires goods or services in relation to which they do not have a full deduction, taking into account any adjustments made to input tax in adjustment periods after acquisition; and
b: subsequently disposes, or is treated as disposing, of the goods or services in the course or furtherance of a taxable activity.
2:
3:
4: Subject to subsection (6), the person must make a final adjustment of an amount calculated using the formula— tax fraction × consideration × (1 − previous use).
5: For the purposes of the formula in subsection (4),—
a: tax fraction section 2(1)
b: consideration
c: previous use
6: If the disposal is of land that the person uses in the course or furtherance of a taxable activity of developing land or dividing land into lots, or if section 5(16B)
a: for a disposal that the person acquired as a zero-rated supply under section 11(1)﻿(m) or (mb) section 20(3J)﻿(a)﻿(iii) sections 21 to 21H
b: for a disposal to which paragraph (a) does not apply, the amount that, when added to any deduction already claimed, produces a total amount equal to the amount of the full input tax deduction on acquisition referred to in section 21D(2)
7: In the formula in subsection (4) tax fraction Section 21F substituted 1 April 2011 section 15(1) Taxation (GST and Remedial Matters) Act 2010 Section 21F(2) repealed 30 March 2022 section 25(1) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 21F(3) repealed 30 March 2022 section 25(1) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 21F(4) added 29 August 2011 section 240(2) Taxation (Tax Administration and Remedial Matters) Act 2011 Section 21F(4) amended 30 March 2022 section 25(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 21F(5) added 29 August 2011 section 240(2) Taxation (Tax Administration and Remedial Matters) Act 2011 Section 21F(6) replaced 30 March 2022 section 25(3) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 21F(6) amended 1 April 2023 section 142(1) section 142(3) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 21F(6)﻿(a) amended 1 April 2023 section 142(2) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 21F(7) added 29 August 2011 section 240(2) Taxation (Tax Administration and Remedial Matters) Act 2011 Section 21F(7) amended 30 March 2022 section 25(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
21FB: Treatment when percentage of taxable use permanently changes
1: This section applies where the person’s use of goods or services in making taxable supplies, as a percentage of total use, permanently changes.
2: The person’s adjustment for the adjustment period in which the change occurred is an amount calculated using the formula— full input tax deduction × new intended use percentage − previous net deductions.
3: In the formula,—
a: full input tax deduction section 20(3J)﻿(a)﻿(i)
b: new intended use percentage
c: previous net deductions section 20(3J)﻿(a)﻿(i)
4: For the purposes of subsection (2),—
a: if the amount is positive, the person is entitled to an additional input tax deduction under section 20(3)﻿(e)
b: if the amount is negative, the person must treat the amount as a positive amount of output tax and attribute it to a taxable period under section 20(4) Section 21FB replaced 1 April 2023 section 143(2) section 143(3) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023
21G: Definitions and requirements for apportioned supplies and adjustment periods
1: For the purposes of this section and sections 8(4B)﻿(b) 9(2)﻿(h) 20(3H) and (3JC) 20G 21 to 21F 21H
a: percentage actual use
i: means the extent to which the goods or services are actually used by the person for making taxable supplies; and
ii: is calculated for the period that starts when the goods or services are acquired , or if section 21FB
iii: is expressed as a percentage of total use:
b: percentage intended use section 20(3G)
c: percentage difference
i: the percentage intended use determined under paragraph (b); or
ii: for a subsequent adjustment period following a period in which a person has made an adjustment, the previous actual use of the goods or services in the earlier period.
2: For the purposes of this section and sections 20G 21 21FB 21H
a: the first adjustment period is a period that—
i: starts on the date of acquisition; and
ii: ends on the date as the person chooses that either corresponds to the person's first balance date described in section 15B(6)
b: a subsequent adjustment period is a period of 12 months that—
i: starts on the day after the end of an earlier adjustment period; and
ii: ends on the last day of the equivalent taxable period in which the first adjustment period ended.
3: For the purposes of subsection (2)﻿(b), a registered person who chooses under section 38(1)
4: The number of adjustment periods in which a registered person must determine whether an adjustment is required under sections 20G 21A
a: 1 of the following based on the value of the goods or services, excluding GST:
i: 2 adjustment periods for goods or services valued at more than $10,000 but not more than $20,000:
ii: 5 adjustment periods for goods or services valued at more than $20,000 but not more than $500,000:
iii: 10 adjustment periods for land, or goods or services valued at more than $500,000; or
b: the relevant adjustment periods that is equal to the number of years for the estimated useful life of the relevant asset as determined under the Tax Depreciation Rates Determinations set by the Commissioner under section 91AAF
5: Subsection (4)﻿(a)﻿(i) and (ii) does
6: An election by a registered person under subsection (4) to limit the number of adjustment periods applying to goods or services acquired by them cannot subsequently be changed.
7: Despite subsection (4) if, after making adjustments for goods or services for the number of adjustment periods, the person subsequently disposes, or is treated as disposing, of the relevant asset, they must make a final adjustment under section 21F
7B: If a person disposes, or is treated as disposing, of an asset before the last required adjustment period under subsection (4), then for the purposes of subsection (2)﻿(a)﻿(ii) and (b)﻿(ii), the current adjustment period is treated as—
a: ending immediately before the date of the disposal; and
b: the final adjustment period.
8: If a person does not choose the number of adjustment periods for an apportioned supply, the limits set out in subsection (4)﻿(a) apply. Section 21G substituted 1 April 2011 section 15(1) Taxation (GST and Remedial Matters) Act 2010 Section 21G(1) amended 1 October 2016 section 61 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 21G(1) amended 17 July 2013 section 134(1) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 21G(1)﻿(a)﻿(ii) amended 31 March 2023 section 144(2) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 21G(2) amended 31 March 2023 section 144(4) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 21G(2) amended 17 July 2013 section 134(2) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 21G(4) amended 17 July 2013 section 134(3) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 21G(4)﻿(a) replaced 1 April 2023 section 144(6) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 21G(5) amended 1 April 2023 section 144(7) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 21G(7B) inserted 2 November 2012 section 220 Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012
21H: Transitional accounting rules
1: This section applies in relation to goods or services acquired before 1 April 2011 when—
a: a registered person determines the extent to which goods or services are applied for the purposes of making supplies other than taxable supplies under sections 21 to 21H old apportionment rules Taxation (GST and Remedial Matters) Act 2010
b: no adjustment was made or was required to be made under the old apportionment rules before 1 April 2011 for goods or services other than those referred to in section 21HB
2: The person must continue to apply the old apportionment rules in relation to the supply. However, the making of these adjustments is limited as follows:
a: for goods or services whose market value or book value on 1 April 2011 is $5,000 or less, no adjustment under the old apportionment rules may be, or may be required to be, made after 1 April 2011:
b: for goods or services whose market value or book value on 1 April 2011 is more than $5,000 but not more than $10,000, no adjustment under the old apportionment rules may be, or may be required to be, made after 1 April 2013:
c: for other goods or services, no adjustment under the old apportionment rules may be, or may be required to be, made after 1 April 2016.
2B: For goods or services that were acquired before 1 April 2011, for which no adjustment was made or required under the old apportionment rules before 1 April 2011, and that are not referred to in section 21HB(1)
a: if input tax was deducted under section 20(3)
b: if no input tax was deducted under section 20(3) sections 21 to 21G
2C: For the purpose of subsection (2B)﻿(b), the first adjustment period is treated as beginning on the date of acquisition of the goods or services and ending on the date that is the first balance date falling after the later of—
a: the date on which the goods or services were first used for making taxable supplies:
b: the date on which the person becomes a registered person.
3: Subsection (2)﻿(a) to (c) do not apply to a supply that wholly or partly consists of land. Section 21H substituted 1 April 2011 section 15(1) Taxation (GST and Remedial Matters) Act 2010 Section 21H(1) replaced 2 November 2012 section 221(1) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 21H(2B) inserted 2 November 2012 section 221(2) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 21H(2C) inserted 2 November 2012 section 221(2) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012
21HB: Transitional
rules
1: Subsections (2) and (3) apply acquired or produced in the period between 1 October 1986 and 1 April 2011 section 4(3) and (4) commercial dwelling dwelling section 51(1)
2: Input tax in relation to the acquisition referred to in subsection (3) may be deducted under section 20(3C)
3: The person must treat the goods or services as acquired on 1 April 2011 at the original cost of the supply.
4: A person may choose that a supply of accommodation in premises not be a taxable supply if the premises—
aa: were acquired by the person before 1 April 2011; and
a: met the requirements of the definition of dwelling section 4(3) and (4) commercial dwelling dwelling
b: do not meet the requirements of the definition of dwelling
5: Subsection (4) does not apply if the value of the person’s supplies of accommodation in premises affected by the amendments exceeds the threshold value given by section 51(1)﻿(a)
6: Subsection (7) applies to a person who—
a: is required to treat a dwelling as a commercial dwelling because of the amendments to the definitions of commercial dwelling dwelling section 4(3) and (4)
b: on or after 1 April 2011, has treated the supply of accommodation in a dwelling, being a residential unit in a retirement village or rest home, as a taxable supply.
7: The person may irrevocably choose in a tax return for a period starting before 1 April 2015, to—
a: continue to treat the supply as a taxable supply for that period and for subsequent periods; or
b: treat the supply as an exempt supply for that period and for subsequent periods, and for this purpose, the election to treat the supply as an exempt supply does not constitute a change of use for the purposes of section 21FB(4)﻿(b) Section 21HB inserted 29 August 2011 section 241(1) Taxation (Tax Administration and Remedial Matters) Act 2011 Section 21HB heading amended 30 June 2014 section 192(1) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 21HB(1) amended 30 June 2014 section 192(2)﻿(a) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 21HB(1) amended 30 June 2014 section 192(2)﻿(b) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 21HB(4) replaced 24 February 2016 section 278 Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 Section 21HB(4)﻿(aa) inserted 26 June 2019 section 24 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 21HB(5) replaced 24 February 2016 section 278 Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 Section 21HB(6) inserted 1 April 2015 section 192(4) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 21HB(7) inserted 1 April 2015 section 192(4) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 21HB(7)﻿(b) amended 1 April 2023 section 145 Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023
21HC: Transitional rules relating to members of unit title bodies corporate
1: A member of a unit title body corporate that acquires a supply of goods or services (the corporate supply in a taxable period that ends on or after 1 November 2010 and before 3 November 2015, or that includes 3 November 2015, section 20(3)﻿(hc)
a: at the time of the corporate supply, the unit title body corporate is not a registered person and the member is a registered person; and
b: the unit title body corporate acquires the corporate supply for the purpose of making a supply (the membership supply section 84
c:
d: the member maintains sufficient records to enable the Commissioner to ascertain—
i: the nature of the corporate supply and the membership supply; and
ii: the amount that the member pays to the unit title body corporate for the membership supply; and
iii: that the corporate supply is a taxable supply; and
iv: that the membership supply is used by the member in making taxable supplies.
2: If the corporate supply is acquired for the purpose of making a membership supply for which the unit title body corporate charges the member on a basis other than the member’s ownership interest or utility interest, as defined in section 5
3: For a corporate supply to which subsection (2) does not apply, the amount that the member may deduct is the tax fraction of an amount that, as a proportion of the amount paid by the unit title body corporate for the corporate supply, is fair and reasonable based on the proportion that the member owns of the total ownership interest and utility interest in the body corporate as defined in section 5 Section 21HC inserted 24 February 2016 section 279 Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 Section 21HC(1) amended 30 March 2017 section 360(1) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 21HC(1)﻿(c) amended 30 March 2017 section 360(2) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017
21I: Fringe benefits and entertainment expenses
1: If a registered person has or is deemed to have provided or granted a fringe benefit to another person under the FBT rules of the Income Tax Act 2007
2: Subsection (1) does not apply to the extent that—
a: the other person paid an amount for the receipt or enjoyment of the fringe benefit; or
b: the fringe benefit arose by virtue of an exempt supply under section 14
c: the fringe benefit arose by virtue of a supply that is charged with tax at the rate of 0% under section 11 11A 11AB 11B
d: the fringe benefit is, or is deemed to be, provided or granted by a registered person in the course of making exempt supplies.
3: Despite sections 9 21C
4: If sections DD 1 to DD 3 Income Tax Act 2007 section DD 2
a: the registered person is treated as having supplied entertainment with a value sections DD 1 DD 2
b: unless subsection (4B) applies, the time of the supply
i: the date on which the person furnishes a return of income under section 37
ii: the date by which the person must furnish a return of income under section 37
4B: Despite subsection (4)﻿(b), for a registered person who is treated as supplying entertainment as described in subsection (4), the time of supply for that entertainment is treated as being 30 September 2010 if—
a: the relevant expenditure or loss for the entertainment is incurred before 1 October 2010; and
b: the registered person chooses to apply this section.
5: For the purpose of subsection (4), expenditure does not include an entertainment allowance to an employee or a reimbursing payment that is exempt income under section CW 17 CW 17B CW 17C CW 18 Section 21I inserted 10 October 2000 section 100(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 21I(1) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 21I(2)﻿(c) amended 1 July 2003 section 158 Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 Section 21I(3) substituted 27 March 2001 section 68(1) Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 Section 21I(4) substituted 1 April 2005 section YA 2 Income Tax Act 2004 Section 21I(4) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 21I(4)﻿(a) amended 1 April 2018 section 361 Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 21I(4)﻿(b) amended 20 May 2010 section 50(1) Taxation (Budget Measures) Act 2010 Section 21I(4B) inserted 20 May 2010 section 50(2) Taxation (Budget Measures) Act 2010 Section 21I(5) amended 6 October 2009 section 712 Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 Section 21I(5) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007
22: Goods and services acquired before incorporation
Any company, being a registered person, shall, where any amount of tax has been charged or levied pursuant to section 8(1) section 12(1)
a: became a member, officer, or employee of the company and was reimbursed by the company for the whole amount of the consideration paid for the goods and services; and
b: acquired those goods and services for the purpose of a taxable activity to be carried on by the company and has not used those goods and services for any purpose other than such taxable activity,— be deemed to be the recipient of the goods and services and to have paid any tax charged or levied pursuant to section 8(1) section 12(1) provided that this section shall not apply in relation to any goods and services where—
c: the supply of those goods and services by that person to the company is a taxable supply, or is a supply of secondhand goods not being a taxable supply; or
d: those goods and services were so acquired more than 6 months prior to the date of incorporation of the company; or
e: the company does not hold sufficient records to establish the particulars relating to the deduction to be made. Section 22 amended 1 October 1996 section 289(1) Customs and Excise Act 1996
23: Payment of tax
1: Every registered person, for each taxable period, shall, not later than the last day allowed under this Act for furnishing a return for that taxable period, pay to the Commissioner the tax payable for that period as calculated pursuant to section 20
2:
3:
4: A return purporting to be made by or on behalf of any person shall for all purposes be deemed to have been made by that person or by that person's authority, as the case may be, unless the contrary is proved. Section 23(2) repealed 10 October 2000 section 101(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 23(3) repealed 21 December 2004 section 153(1) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004
23A: Payment of tax relating to fringe benefits
1: A registered person who provides or grants a fringe benefit to another person under the Income Tax Act 2007 FBT sections RA 15 RD 59 to RD 62 sections 46B to 46D
2: Payment of the tax on the taxable value of the fringe benefit is treated as a payment of FBT Parts 4A 6 7 9 10 11 Section 23A inserted 27 March 2001 section 69(1) Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 Section 23A(1) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 23A(2) added 17 October 2002 section 105(1) Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 Section 23A(2) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007
24: Tax invoices
Section 24 repealed 1 April 2023 section 26(4) section 26(6) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
24BA: Shared tax invoices
Section 24BA repealed 1 April 2023 section 27(4) section 27(6) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
24BAB: Receipts for supplies
Section 24BAB repealed 1 April 2023 section 28(1) section 28(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
24BAC: Information for importation of goods including distantly taxable goods
Section 24BAC repealed 1 April 2023 section 29(1) section 29(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
24B: Records to be kept by recipient of imported
goods and services Section 24B repealed 1 April 2023 section 30(1) section 30(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
25: Adjustments for inaccuracies
1: This section applies where, in relation to a supply of goods and services by a registered person, the registered person issues a tax invoice, credit note, or debit note, or makes a return for a taxable period, containing an inaccuracy that is or arises from 1 or more of—
a: a cancellation of the supply:
b: a return, to the supplier, of all or part of the supply:
c: an incorrect description of the supply:
d: an incorrect amount of consideration:
e: an incorrect place of supply:
f: an incorrect time of supply:
g: an incorrect rate of tax:
h: an incorrect amount of tax charged:
i: an incorrect description of the supplier or recipient of the supply.
1B:
2: Where a supplier has accounted for an incorrect amount of output tax for a taxable period as a consequence of an inaccuracy referred to in subsection (1)
a: the output tax properly charged in relation to that supply exceeds the output tax actually accounted for by the supplier, the amount of that excess shall be deemed to be tax charged on a taxable supply made by that supplier and be
b: the output tax actually accounted for exceeds the output tax properly charged in relation to that supply, that supplier shall make a deduction section 20(3)
3:
3A:
3B:
3C:
4: If a registered person makes a deduction in a taxable period of input tax relating to a supply for which the person has taxable supply information supply correction information the supply correction information
a: treated as being output tax charged on a taxable supply made by the registered person, to the extent that the input tax deducted relating to the supply exceeds the output tax properly charged on the supply; and
b: attributed to the taxable period in which the supply correction information
5: If a registered person makes a deduction in a taxable period of input tax relating to a supply for which the person has taxable supply information supply correction information the taxable supply information section 20(3) the supply correction information
6:
7: Section 25 replaced 30 March 2022 section 31(1) section 31(11) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25(1) replaced 30 March 2022 section 31(2) section 31(11) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25(1B) repealed 1 April 2023 section 31(3) section 31(12) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25(2) amended 30 March 2022 section 31(4) section 31(11) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25(2)﻿(a) amended 21 June 2005 section 157 Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 Section 25(2)﻿(b) amended 25 November 2003 section 159(1) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 25(3) repealed 1 April 2023 section 31(6) section 31(12) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25(3A) repealed 1 April 2023 section 31(6) section 31(12) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25(3B) repealed 1 April 2023 section 31(6) section 31(12) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25(3C) repealed 1 April 2023 section 31(6) section 31(12) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25(4) replaced 30 March 2022 section 31(7) section 31(11) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25(4) amended 1 April 2023 section 31(8)﻿(a)﻿(i) section 31(12) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25(4) amended 1 April 2023 section 31(8)﻿(a)﻿(ii) section 31(12) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25(4) amended 1 April 2023 section 31(8)﻿(a)﻿(iii) section 31(12) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25(4)﻿(b) amended 1 April 2023 section 31(8)﻿(b) section 31(12) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25(5) replaced 30 March 2022 section 31(7) section 31(11) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25(5) amended 1 April 2023 section 31(9)﻿(a) section 31(12) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25(5) amended 1 April 2023 section 31(9)﻿(b) section 31(12) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25(5) amended 1 April 2023 section 31(9)﻿(c) section 31(12) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25(5) amended 1 April 2023 section 31(9)﻿(d) section 31(12) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25(6) repealed 1 April 2023 section 31(10) section 31(12) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25(7) repealed 1 April 2023 section 31(10) section 31(12) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
25AA: Consequences of change in contract for imported
goods and services
1: Despite section 25 goods or services sections 5B 8(4B)
a: any one of the following is satisfied:
i: the supply of goods or services
ii: the nature of the supply of goods or services
iii: the previously agreed consideration for the supply of goods or services
iv: the goods or services goods or services non-resident:
v: the supplier has provided the recipient with taxable supply information section 24(5B) or (5BB)
b: an incorrect return has been made for the taxable period for which output tax on the supply is attributable.
2: A person who has accounted for an incorrect amount of output tax must make an adjustment to the calculation of tax payable in the return for the taxable period in which it becomes apparent that the amount of output tax was incorrect, and if the output tax properly charged on the supply is—
a: more than the output tax actually accounted for by the person, the amount of the excess is treated as being tax charged in relation to a taxable supply made by the person:
b: less than the output tax actually accounted for by the person, the amount of the deficiency is a deduction under section 20(3)
3: A person who has accounted for an incorrect amount of deductions must make an adjustment to the calculation of tax payable in the return for the taxable period in which it becomes apparent that the amount of deductions was incorrect, and if the deduction properly resulting from the supply is—
a: less than the deduction actually claimed by the person, the amount of the deficiency is treated as being tax charged in relation to a taxable supply made by the person:
b: more than the deduction actually claimed by the person, the amount of the excess is a deduction under section 20(3) Section 25AA inserted 1 January 2005 section 160 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 25AA heading amended 1 December 2019 section 29(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 25AA(1) amended 1 December 2019 section 29(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 25AA(1)﻿(a)﻿(i) amended 1 December 2019 section 29(3) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 25AA(1)﻿(a)﻿(ii) amended 1 December 2019 section 29(3) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 25AA(1)﻿(a)﻿(iii) amended 1 December 2019 section 29(3) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 25AA(1)﻿(a)﻿(iv) amended 1 December 2019 section 29(3) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 25AA(1)﻿(a)﻿(iv) amended 1 October 2016 section 65(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 25AA(1)﻿(a)﻿(v) inserted 1 October 2016 section 65(2) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 25AA(1)﻿(a)﻿(v) amended 1 April 2023 section 32(1) section 32(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25AA(1)﻿(a)﻿(v) amended 1 December 2019 section 29(4) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
25AB: Consequences of change in contract for secondhand goods
1: This section applies to a supply of secondhand goods to a registered person for which the registered person returns input tax determined under section 3A(3)
a: the supply is affected by 1 or more of—
i: a cancellation of the supply:
ii: a return, to the supplier, of all or part of the supply:
iii: an incorrect description of the supply:
iv: an incorrect rate of tax:
v: an incorrect amount of tax charged:
vi: a change to the previously agreed consideration for the supply; and
b: the registered person returns input tax on the supply as a deduction from the amount of output tax for a taxable period in the calculation of tax payable by the registered person for the taxable period; and
c: as a result of the event referred to in paragraph (a), the amount of input tax on the supply returned by the registered person exceeds the correct amount of input tax for the supply; and
d: the supplier does not provide taxable supply information or supply correction information
2: An amount equal to the amount of the excess referred to in subsection (1)﻿(c) is treated as being tax charged in relation to a taxable supply made by the registered person for the taxable period in which the error in the amount of input tax is found Section 25AB inserted 30 March 2017 section 363 Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 25AB(1) amended 29 March 2018 section 401(1) Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 Section 25AB(1)﻿(a) replaced 1 April 2023 section 33(1) section 33(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25AB(1)﻿(d) amended 1 April 2023 section 33(2) section 33(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 25AB(2) amended 1 April 2023 section 33(3) section 33(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
25A: Commissioner may approve use of symbols, etc, on electronically transmitted
invoices, receipts, and Section 25A repealed 1 April 2023 section 34(1) section 34(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
26: Bad debts
1: Where a registered person
a: has made a taxable supply for consideration in money; and
b: has furnished a return in relation to the taxable period during which the output tax on the supply was attributable and has properly accounted for the output tax on that supply as required under this Act; and
c: has written off as a bad debt the whole or part of the consideration not paid to that person,— that registered person shall make a deduction under section 20(3) provided that where goods are supplied under a hire purchase agreement section 20(3)
1AA: Subsection (1) also applies if a registered person sells a debt to a third party and then reacquires the debt.
1AB: A registered person who is required to account for tax payable on a payments basis under either section 19 section 19A sections 9(2)﻿(b) 26A
1A: Where a registered person has, in respect of the supply by that registered person of any contract of insurance (being a supply charged with tax pursuant to section 8(1)
a: paid any amount to the Earthquake and War Damage Commission pursuant to the Earthquake and War Damage Act 1944 or to the Fire Service Commission pursuant to the Fire Service Act 1975 or to Fire and Emergency New Zealand pursuant to the Fire and Emergency New Zealand Act 2017
b: sought to recover that amount, together with the consideration for that supply, from the recipient of that supply; and
c: written off as a bad debt the whole or part of that amount not paid to that registered person,— that registered person shall make a deduction under section 20(3)
2: Where any amount in respect of which a deduction has been made in accordance with subsection (1) is at any time wholly or partly recovered by the registered person, that portion of the amount of the deduction allowable under subsection (1) as the amount of the bad debt recovered bears to the bad debt written off shall be deemed to be the tax charged in relation to a taxable supply made during the taxable period in which the bad debt is wholly or partly recovered.
3: This section does not apply when the taxable supply is one made by a principal to an agent as described in section 60(1B)﻿(a) section 60(1B)﻿(b)
4: This section does not apply when the taxable supply is made by an agent to a principal as described in section 60(2B)﻿(b)
5: This section does not apply when the taxable supply is made by a marketplace operator and section 26AA Section 26(1) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 26(1) first proviso amended 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003 Section 26(1) second proviso repealed 10 October 2000 section 103(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 26(1AA) inserted 10 October 2000 section 103(2) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 26(1AB) inserted 10 October 2000 section 103(2) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 26(1A) inserted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 26(1A)﻿(a) amended 1 July 2017 section 197 Fire and Emergency New Zealand Act 2017 Section 26(3) inserted 17 July 2013 section 135 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 26(4) inserted 30 March 2017 section 364 Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 26(5) inserted 1 December 2019 section 31 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
26AA: Marketplace operators: bad debts for amounts of tax
1: This section applies to a marketplace operator who is the supplier under section 60C 60D
a: charges the underlying supplier a fee for making the taxable supply; and
b: furnishes a return in relation to the taxable period during which the output tax on the supply is attributable; and
c: accounts for the output tax on the supply; and
d: has an agreement with the underlying supplier under which the underlying supplier is required to pay to the marketplace operator, from consideration received by the underlying supplier from the supply, an amount (the debt
e: the marketplace operator writes off as a bad debt the total amount consisting of the fee and debt referred to in paragraphs (a) and (d) (the write-off
2: The marketplace operator shall make a deduction under section 20(3)
3: If the marketplace operator recovers in a later taxable period an amount of a bad debt that gave rise to a deduction or reduction under subsection (2), the marketplace operator shall account for an amount of output tax that is a fraction of the amount of the deduction or reduction, where the fraction is calculated by dividing the amount of the recovery by the amount of the write-off. Section 26AA inserted 1 December 2019 section 32 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
26A: Factored debts
1: This section applies to a registered person who—
a: sells a debt to another person during a taxable period; and
b: is required to account for tax payable on a payments basis.
2: The sale of the debt is treated as being a taxable supply—
a: that is made by the registered person during the taxable period; and
b: on which the amount of tax charged is the tax fraction of the remaining book value of the debt. Section 26A substituted 21 June 2005 section 158 Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005
4: Assessment of tax
Part 4 repealed 21 December 2004 section 154(1) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004
27: Assessment of tax
Section 27 repealed 21 December 2004 section 154(1) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004
28: Validity of assessments not affected by failure to comply with Act
Section 28 repealed 21 December 2004 section 154(1) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004
29: Assessments deemed correct except in proceedings on objection
Section 29 repealed 21 December 2004 section 154(1) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004
30: Evidence of returns and assessments
Section 30 repealed 21 December 2004 section 154(1) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004
31: Application of Parts 4A and 8A of Tax Administration Act 1994
Section 31 repealed 21 December 2004 section 154(1) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004
5: Objections
Part 5 repealed 1 October 1996 section 8(1) Goods and Services Tax Amendment Act 1996
32: Objections to certain decisions
Section 32 repealed 1 October 1996 section 8(1) Goods and Services Tax Amendment Act 1996
33: Objections to assessments
Section 33 repealed 1 October 1996 section 8(1) Goods and Services Tax Amendment Act 1996
34: Commissioner may amend assessment, or objections may be submitted to Taxation Review Authority
Section 34 repealed 1 October 1996 section 8(1) Goods and Services Tax Amendment Act 1996
35: Powers of Taxation Review Authority on determination of objection or case stated
Section 35 repealed 1 October 1996 section 8(1) Goods and Services Tax Amendment Act 1996
36: When objection may be referred in first instance to High Court
Section 36 repealed 1 October 1996 section 8(1) Goods and Services Tax Amendment Act 1996
36A: Test case procedure
Section 36A repealed 1 October 1996 section 8(1) Goods and Services Tax Amendment Act 1996
37: Obligation to pay tax where objection lodged
Section 37 repealed 1 October 1996 section 8(1) Goods and Services Tax Amendment Act 1996
38: Interest on certain excess tax
Section 38 repealed 1 October 1996 section 8(1) Goods and Services Tax Amendment Act 1996
39: Determination of objection not to affect other assessments or decisions
Section 39 repealed 1 October 1996 section 8(1) Goods and Services Tax Amendment Act 1996
40: Objections to which this Part does not apply
Section 40 repealed 1 October 1996 section 8(1) Goods and Services Tax Amendment Act 1996
6: Recovery of tax
41: Additional tax to be payable if default made in payment of tax
Section 41 repealed 26 July 1996 section 9(1) Goods and Services Tax Amendment Act 1996
42: Recovery of tax
1: Tax payable by any person shall be recoverable as a debt due to the Crown.
2: Where a person has not paid the amount of the tax payable or any part thereof in the manner required by Part 3
a: where the person is an individual, whether or not a member of an unincorporated body
b: where the person is a company, upon the liquidation of the company, the amount of the tax payable shall have the ranking provided for in Schedule 7
ba: where the person is a company, upon the appointment of a receiver on behalf of the holder of any debenture given by the company secured by a charge over any property of the company or upon possession being taken on behalf of the debenture holder of the property, the amount of the tax payable shall have the ranking provided for in Schedule 7
c: if a person is an unincorporated body, on the appointment of a receiver on behalf of any person, the amount of tax payable—
i: ranks immediately after any preferential claims for any wages or other sums payable to or on account of any servant, worker, apprentice, or articled clerk; and
ii: ranks in priority over any claims of any person under a security interest to the extent that the security interest—
A: is over all or any part of the unincorporated body's accounts receivable and inventory or all or any part of either of them; and
B: is not a purchase money security interest that has been perfected at the time specified in section 74
C: is not a security interest that has been perfected under the Personal Property Securities Act 1999
iii: must be paid accordingly out of any accounts receivable and inventory that are subject to the security interest (or their proceeds).
3: This section shall apply notwithstanding anything in any other Act.
4: In subsection (2)﻿(c), the terms account receivable inventory new value proceeds purchase money security interest security interest Personal Property Securities Act 1999
5: The provisions of this section, as in force immediately before the commencement of the Personal Property Securities Act 1999 Section 42(2) amended 30 March 1995 Customs Amendment Act 1995 Section 42(2)﻿(a) amended 10 October 2000 section 106(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 42(2)﻿(b) substituted 14 September 1994 section 5 Goods and Services Tax Amendment Act 1994 Section 42(2)﻿(ba) inserted 14 September 1994 section 5 Goods and Services Tax Amendment Act 1994 Section 42(2)﻿(c) substituted 1 May 2002 section 191(1) Personal Property Securities Act 1999 Section 42(2)﻿(c)﻿(ii)﻿(B) amended 3 December 2007 section 445 Insolvency Act 2006 Section 42(2)﻿(c)﻿(ii)﻿(C) amended 3 December 2007 section 445 Insolvency Act 2006 Section 42(4) substituted 1 May 2002 section 191(1) Personal Property Securities Act 1999 Section 42(5) added 1 May 2002 section 191(1) Personal Property Securities Act 1999
43: Deduction of tax from payment due to defaulters
1: For the purposes of this section— amount payable
a: any amount that, on the day on which a notice to the person is given under subsection (2) in relation to the registered person, is payable by the person (whether on that person's own account, or as an agent, or as a trustee, or otherwise howsoever) to the registered person:
b: any amount that, on any day following the day referred to in paragraph (a), is, or becomes, before any revocation (under subsection (4)) of the notice so given, payable by the person (whether on that person's own account, or as an agent, or as a trustee, or otherwise howsoever) to the registered person,— and includes—
c: where the person is a bank, money (including any interest thereon) that—
i: on the day on which a notice to the person is given under subsection (2) in relation to the registered person, is on deposit or is deposited with the person to the credit of the registered person; or
ii: on any day following the day referred to in subparagraph (i) is on deposit or is deposited, before any revocation (under subsection (4)) of the notice so given, with the person to the credit of the registered person,— whether the deposit or the depositing is on current account, or so as to bear interest for a fixed term or without limitation of time, and whether or not the registered person has made any application to withdraw or uplift the money,— but does not include money deposited in any account that is—
d: a Home Layby Account within the meaning of the Post Office Act 1959
e: a Home Ownership Account within the meaning of the Home Ownership Savings Act 1974
f:
g: bank
a:
b:
c:
d: any building society registered under the Building Societies Act 1965
e: any person (not being a person of any of the kinds referred to in paragraphs (a) to (d)) that is a bank within the meaning of the Banking Act 1982.
1B: For the purposes of the definition of amount payable
a: is held in a joint bank account in the name of the registered person and 1 or more other persons; and
b: can be withdrawn from the account by or on behalf of the registered person without a signature or other authorisation being required at the time of the withdrawal from, or on behalf of, the other person or persons.
1C: Subsection (1B) does not apply when the joint bank account is an account of a partnership that files a return of income under section 33(1)
2: Where any registered person has made default in the payment to the Commissioner of any tax or interest or late payment penalty or shortfall penalty payable by the registered person under this Act or the Tax Administration Act 1994 unpaid tax
a: deduct or extract, in one sum, from any amount that is, or becomes, an amount payable in relation to that registered person such sum as is equal to the lesser of—
i: the amount that, pursuant to the notice, is required to be deducted or extracted:
ii: the amount that, at the time at which the deduction or extraction is required to be made in compliance with the notice, is the said amount payable:
b: subject to subsection (3), deduct or extract from time to time, by way of instalment, from any amount that is or, as the case may be, from time to time becomes, an amount payable in relation to the registered person such sum as is equal to the lesser of—
i: the amount that, at the time at which the deduction or extraction is required to be made in compliance with the notice, is the amount required to be so deducted or extracted:
ii: the amount that, pursuant to the notice, at the time at which the amount of the instalment is required to be deducted or extracted, is the said amount payable,— and require that person to pay to the Commissioner, within such time as is specified in the notice, every sum so deducted or extracted, to the credit of an account maintained by the Commissioner in relation to that registered person in respect of that unpaid tax.
2AA: If a person (the liable person defaulting person
2A: A notice of amount to be deducted or extracted issued under subsection (2)
2B: The daily amount of interest notified under subsection (2A) shall be calculated for each day, commencing on the date of the notice and ending on the day on which the sum required by the notice is deducted or extracted.
3: Where any notice under this section relates to any amount payable that consists of wages or salary, the sums required to be deducted therefrom shall be calculated so as to not exceed the greater of—
a: an amount equal to the lesser of the following amounts:
i: an amount calculated at the rate of 10% per week of the unpaid tax of the registered person at the date of the notice:
ii: an amount calculated at the rate of 20% of the said wages or salary payable:
b: the amount of $10 per week.
4: Any notice under this section may be at any time revoked by the Commissioner by a subsequent notice to the person to whom the original notice was given (in this section referred to as the debtor must be revoked by the Commissioner on application for revocation by the registered person or liable person
5: The Commissioner must provide a copy of a notice that is given in relation to any unpaid tax to a person under subsection (2) or (4) to the registered person or liable person
5B: Despite subsection (5), for a notice relating to an amount of wages or salary described in subsection (3), the Commissioner may dispense with the requirement to send a copy of the notice to the registered person or liable person the registered person or liable person
6: Whenever, pursuant to a notice under this section, any deduction or extraction is made from any amount payable to a registered person or liable person the registered person or liable person notification
7: Any person making any deduction, extraction, or payment pursuant to a notice under this section shall be deemed to have been acting under the authority of the person
8: The sum deducted or extracted from any amount pursuant to a notice under this section shall be deemed to be held in trust for the Crown, and, without prejudice to any other remedies against the debtor or any other person, shall be recoverable in the same manner in all respects as if it were tax payable by the debtor.
9: Where, in relation to any notice under this section and during any period, that period being,—
a: where a notice under subsection (2) requires any person, being a bank, to deduct or extract no more than 1 sum, the period that commences on the day on which the notice to the person is given and expires with the day on which the deduction or extraction is required to be made in compliance with the notice:
b: where a notice under subsection (2) requires any person, being a bank, to deduct or extract more than 1 sum, by way of instalment,—
i: in relation to the sum first required to be deducted or extracted in compliance with the notice, the period that commences on the day on which the notice to the person is given and expires with the day on which the deduction or extraction is so required to be made:
ii: in relation to each succeeding sum required to be deducted or extracted in compliance with the notice, the period that commences on the day immediately following the day on which the previous deduction or extraction (being the deduction or extraction that, in relation to that succeeding sum, was the deduction or extraction last required to be made therebefore) was required to be made in compliance with the notice and expires with the day on which that succeeding sum is so required to be deducted or extracted,— any amount is, or becomes, an amount payable in relation to the registered person or liable person Section 43(1) amount payable repealed 3 June 2017 section 4(2) Statutes Repeal Act 2017 Section 43(1) amount payable repealed 3 June 2017 section 4(2) Statutes Repeal Act 2017 Section 43(1) bank repealed 14 September 1994 section 6 Goods and Services Tax Amendment Act 1994 Section 43(1) bank repealed 14 September 1994 section 6 Goods and Services Tax Amendment Act 1994 Section 43(1) bank repealed 14 September 1994 section 6 Goods and Services Tax Amendment Act 1994 Section 43(1B) inserted 21 December 2010 section 18 Taxation (GST and Remedial Matters) Act 2010 Section 43(1C) inserted 21 December 2010 section 18 Taxation (GST and Remedial Matters) Act 2010 Section 43(2) amended 2 June 2016 section 190(1) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 43(2) amended 26 July 1996 section 10 Goods and Services Tax Amendment Act 1996 Section 43(2AA) inserted 30 March 2022 section 35(1) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 43(2A) inserted 23 September 1997 section 114(1) Taxation (Remedial Provisions) Act 1997 Section 43(2A) amended 30 March 2022 section 35(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 43(2B) inserted 23 September 1997 section 114(1) Taxation (Remedial Provisions) Act 1997 Section 43(4) amended 30 March 2022 section 35(3) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 43(4) amended 2 June 2016 section 190(2) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 43(5) replaced 2 June 2016 section 190(3) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 43(5) amended 30 March 2022 section 35(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 43(5B) inserted 2 June 2016 section 190(3) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 43(5B) amended 30 March 2022 section 35(5) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 43(6) amended 30 March 2022 section 35(6)﻿(a) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 43(6) amended 30 March 2022 section 35(6)﻿(b) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 43(6) amended 2 June 2016 section 190(4) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 43(7) amended 30 March 2022 section 35(7) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 43(9) amended 30 March 2022 section 35(8) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
44: Application of certain provisions of Income Tax Act 1976 relating to recovery procedures
Section 44 repealed 26 July 1996 section 11 Goods and Services Tax Amendment Act 1996
7: Refunds and relief from tax
45: Refund of excess tax
1: Subject to this Part, and to Part 11
a: the Commissioner is satisfied that the amount represents an excess over the amount properly payable
b: the 4-year period referred to in section 108A ended
2: Despite section 20(5)
a: the Commissioner is satisfied that the person paid the amount as a result of an amendment to an assessment that increased
b: the Commissioner is satisfied that the amount represents an excess over the amount properly payable
c: the 4-year period beginning from the end of the year in which the assessment was amended has not ended
3: Despite section 20(5)
a:
b: the person has received a refund under section 19C(8) 20(5) 46
c: the Commissioner is satisfied that the person was entitled to receive the amount at the time of the refund but did not; and
d: the 4-year period beginning from the end of the year in which the refund was made has not ended
4: The Commissioner may refund an overpayment of tax that is referred to in subsection (1), (2), or (3)
a: the overpayment of tax is the result of a clear mistake or simple oversight of the person; and
b: the refund is made—
i: within the period of 4 years beginning from the end of the 4-year period referred to in the subsection:
ii: as a result of an application by or on behalf of the person that the Commissioner receives before or within the period of 4 years beginning from the end of the 4-year period referred to in the subsection. Section 45 substituted 21 December 2004 section 155(1) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 Section 45(1)﻿(a) amended 21 June 2005 section 159(1) Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 Section 45(1)﻿(b) amended 21 June 2005 section 159(2) Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 Section 45(2)﻿(a) amended 21 June 2005 section 159(3) Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 Section 45(2)﻿(b) amended 21 June 2005 section 159(4) Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 Section 45(2)﻿(c) amended 21 June 2005 section 159(5) Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 Section 45(3) amended 21 June 2005 section 159(6) Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 Section 45(3)﻿(a) repealed 21 June 2005 section 159(6) Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 Section 45(3)﻿(c) substituted 21 June 2005 section 159(7) Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 Section 45(3)﻿(d) amended 21 June 2005 section 159(8) Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 Section 45(4) amended 30 March 2017 section 365(1) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017
46: Commissioner's right to withhold payments
1: Subject to this section, if the Commissioner is required to refund an amount to a registered person under section 19C(8) section 20(5)
a: except when paragraph (b) applies, not later than 15 working days following the day on which the registered person's return was received by the Commissioner; or
b: the day after the working day on which the Commissioner—
i: determines the amount is refundable, after first having—
A: investigated the circumstances of the return in accordance with subsection (2); or
B: reviewed the information requested in accordance with subsection (2); and
ii: is satisfied that the registered person has complied with the person's tax obligations.
1B: For the purposes of subsections (1)﻿(a), (4)﻿(a), and (5), for a non-resident person who is registered under section 54B
2: If the Commissioner is not satisfied with a return made by a registered person, the Commissioner—
a: may investigate the circumstances of the return:
b: may request the registered person to provide further information concerning the return.
3: If a registered person fails to provide a return for any taxable period as required by this Act, the Commissioner may withhold payment—
a: of any tax otherwise refundable under this Act or the Tax Administration Act 1994
b: of any interest payable under Part 7 until the registered person complies with the requirement.
4: The Commissioner must give a request for information concerning a return under subsection (2)—
a: within a period of 15 working days following the day on which the return is received by the Commissioner (in the case of an initial request for information); and
b: within a period of 15 working days following the date of receipt of any information previously requested by the Commissioner (for subsequent requests for information).
5: The Commissioner must notify the registered person—
a: of the Commissioner's intention to investigate the circumstances of the return under subsection (2); and
b: of the Commissioner's intention to withhold payment under subsection (3)— within 15 working days following the day on which the return is received by the Commissioner.
6: If, but for this subsection, a registered person would be entitled to an amount as a refund under section 19C(8) 20(5) 45 78B(5)﻿(c) Tax Administration Act 1994 Part 7 section 173T
a: tax that is payable by the person:
b: an amount that is payable by the person under another Inland Revenue Act.
7: If, but for this subsection, a person who is a specified agent of an incapacitated person, as those terms are defined in section 58(1) section 20(3)
a: tax that is payable by the incapacitated person:
b: an amount that is payable by the incapacitated person under another Inland Revenue Act.
8:
9: Section 46 substituted 26 July 1996 section 13(1) Goods and Services Tax Amendment Act 1996 Section 46(1B) inserted 1 April 2014 section 136 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 46(1B) amended 30 June 2014 section 194 Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 46(6) substituted 25 November 2003 section 161(1) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 46(6) amended 20 May 2010 section 51 Taxation (Budget Measures) Act 2010 Section 46(7) substituted 25 November 2003 section 161(1) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 46(8) repealed 25 November 2003 section 161(1) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 46(9) repealed 25 November 2003 section 161(1) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003
47: Tax paid in excess may be
credited towards In any case where, upon the investigation by the Commissioner of the liability of a registered person for tax over a number of taxable periods,—
a: the Commissioner assesses the registered person with tax for any taxable period in respect of which no assessment has been made previously or alters an assessment for any taxable period so as to increase the amount thereof; and
b: in respect of any taxable period or taxable periods within that group of taxable periods tax has been paid in excess of the amount properly payable,— the Commissioner may, in the Commissioner's discretion and to the extent that in the opinion of the Commissioner is equitable, allow any amount so paid in excess to be credited towards satisfying the registered person's liability to pay Section 47 heading amended 26 July 1996 section 14 Goods and Services Tax Amendment Act 1996 Section 47 amended 26 July 1996 section 14 Goods and Services Tax Amendment Act 1996
48: Power of Commissioner in respect of small amounts
Section 48 repealed 26 July 1996 section 15 Goods and Services Tax Amendment Act 1996
48A: Relief from tax where new start grant made
Section 48A repealed 24 February 2016 section 280 Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016
49: Relief from additional tax
Section 49 repealed 26 July 1996 section 16 Goods and Services Tax Amendment Act 1996
50: Appropriation of refunds
Section 50 repealed 21 December 2004 section 157 Taxation (Venture Capital and Miscellaneous Provisions) Act 2004
8: Registration
51: Persons making supplies in course of taxable activity to be registered
1: Subject to this Act, every person who, on or after 1 October 1986, carries on any taxable activity and is not registered, becomes liable to be registered—
a: at the end of any month where the total value of supplies made in New Zealand $60,000 ( see provided that a person does not become liable to be registered by virtue of this paragraph where the Commissioner is satisfied that the value of those supplies in the period of 12 months beginning on the day after the last day of the period referred to in the said paragraph will not exceed that amount:
b: at the commencement of any month where there are reasonable grounds for believing that the total value of the supplies to be made in New Zealand provided that any such person shall not become liable where the Commissioner is satisfied that that value will exceed that amount in that period solely as a consequence of—
c: any ending of, including a premature ending of
d: the replacement of any plant or other capital asset used in any taxable activity carried on by that person; or
e:
1B: For the purposes of determining under subsection (1) the liability of a unit title body corporate to be registered, the value of a supply of a service made by the body corporate to a member is not included in the total value of supplies made in New Zealand by the body corporate.
1C: For the purposes of subsection (1), if the person is a non-resident supplier making a supply of distantly taxable goods to which section 8(3)﻿(ab)
2: Every person who, by virtue of subsection (1), becomes liable to be registered shall apply to the Commissioner in the prescribed form for registration under this Act, within 21 days of becoming so liable, and provide the Commissioner with such further particulars as the Commissioner may require for the purpose of registering that person.
3: Notwithstanding subsections (1) and (2), every person who satisfies the Commissioner that, on or after 1 October 1986,—
a: that person is carrying on any taxable activity; or
b: that person intends to carry on any taxable activity from a specified date,— may apply to the Commissioner in the prescribed form for registration under this Act, and provide the Commissioner with such further particulars as the Commissioner may require for the purpose of registering that person.
4: Where any person has—
a: made application for registration pursuant to subsection (2) , (3), or section 54B
b: not made application for registration pursuant to subsection (2), and the Commissioner is satisfied that that person is liable to be registered under this Act, that person shall be a registered person for the purposes of this Act with effect from the date provided that the Commissioner may, having regard to the circumstances of the case, determine that person to be a registered person from such later date as the Commissioner considers equitable.
5: Notwithstanding anything in this Act, where any taxable activity is carried on by any non-profit body in branches or divisions, that non-profit body may apply
5B: A unit title body corporate that is registered under this Act as a result of an application under subsection (3) made on a date (the application date
6: The provisions of this Act relating to the determination of the value of any supply of goods and services shall apply for the purposes of this section, with the modification that no regard shall be had to any tax charged in respect of any such supply.
7: An application for registration under this Act purporting to be made by or on behalf of any person shall for all purposes be deemed to have been made by that person or by that person's authority, as the case may be, unless the contrary is proved.
8: An order under subsection (1)﻿(a) is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 51(1)﻿(a) amended 30 March 2009 section 27 Taxation (Business Tax Measures) Act 2009 Section 51(1)﻿(a) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 51(1)﻿(a) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 51(1)﻿(b) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 51(1)﻿(c) amended 10 October 2000 section 109(2) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 51(1)﻿(d) amended 1 July 2003 section 160 Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 Section 51(1)﻿(e) repealed 1 April 2022 section 187 Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 51(1B) inserted 24 February 2016 section 281(1) Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 Section 51(1C) inserted 1 October 2016 section 66 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 51(1C) amended 1 December 2019 section 33 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 51(4)﻿(a) amended 1 April 2014 section 137 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 51(4)﻿(b) amended 24 March 1988 Goods and Services Tax Amendment Act 1988 Section 51(5) amended 2 June 2016 section 191 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 51(5B) inserted 24 February 2016 section 281(2) Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 Section 51(7) added 19 December 1989 Goods and Services Tax Amendment Act (No 2) 1989 Section 51(8) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
51B: Persons treated as registered
1: For the purposes of Parts 3 6 Part 9 making supplies in the course or furtherance of a taxable activity
a: a person who is not otherwise a registered person but who supplies goods or services, representing that tax is charged on the supply:
b: if goods are supplied by a sale to which section 5(2)
i: the person selling the goods, if the requirements of section 5(2)﻿(a) and (b)
ii: the person whose goods are sold, if the person provides to the person selling the goods a statement that does not meet the requirements of section 5(2)﻿(a)
c: a person whose registration has been cancelled under section 52(5)
d: a non-resident person referred to in section 54B(2)
2: If a person referred to in subsection (1) represents that tax is being charged on a supply that they make in a taxable period, the person is liable to pay the amount of the tax.
3: If a person is treated by subsection (1)﻿(c) as being a registered person, the person is treated as being registered from the original date of registration to the date when the Commissioner cancels the registration.
4: For the purposes of this Act, in relation to a supply to which section 11(1)﻿(mb) section 5(23B)
a: is treated as registered from the date of the supply under section 5(23B)
b: must apply under section 51(2)
5: A person who is treated as registered under subsection (4)﻿(b) may ask the Commissioner to cancel their registration under section 52(2) section 5(23B)
6: For the purposes of subsection (5), section 5(3) does not apply if—
a: the person seeks cancellation of their registration by the end of the taxable period in which they have accounted for the output tax under section 5(23B)
b: the Commissioner so determines, on application by the person.
7: For the purposes of this Act, if a recipient is treated as a supplier under section 5(27)
a: a supply of distantly taxable goods to which section 8(3)﻿(ab)
b: a supply of remote services to which section 8(3)﻿(c) section 60(1AB) section 60C 60D
8: For the purposes of this Act, in relation to a supply of goods by a non-resident through a marketplace, a person who is treated as a supplier under section 5(28) Section 51B inserted 21 December 2004 section 158(1) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 Section 51B(1) amended 1 December 2019 section 34(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 51B(1)﻿(b) replaced 30 March 2017 section 366 Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 51B(1)﻿(d) inserted 1 April 2014 section 138 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 51B(4) added 1 April 2011 section 19(1) Taxation (GST and Remedial Matters) Act 2010 Section 51B(4) amended 1 April 2023 section 148(1) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 51B(4)﻿(a) amended 1 April 2023 section 148(2) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 51B(5) added 1 April 2011 section 19(1) Taxation (GST and Remedial Matters) Act 2010 Section 51B(5) amended 1 April 2023 section 148(3) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 51B(6) added 1 April 2011 section 19(1) Taxation (GST and Remedial Matters) Act 2010 Section 51B(6)﻿(a) amended 1 April 2023 section 148(4) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 51B(7) replaced 1 December 2019 section 34(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 51B(8) inserted 1 December 2019 section 34(3) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
52: Cancellation of registration
1: Subject to this Act, every registered person who carries on any taxable activity shall cease to be liable to be registered where at any time section 51(1)
2: Every person who, by virtue of subsection (1), ceases to be liable to be registered may request the Commissioner
3: Every registered person who ceases to carry on all taxable activities shall inform the Commissioner of that fact with effect from the last day of the taxable period during which all such taxable activities ceased, or from such other date as may be determined by the Commissioner provided that the Commissioner shall not at any time cancel the registration of any such registered person if there are reasonable grounds for believing that the registered person will carry on any taxable activity at any time within 12 months from that date of cessation.
4: Any information provided by a registered person to the Commissioner under subsection (3) must include the date on which the person ceased to carry on all taxable activities and whether or not the person intends to carry on any taxable activity within 12 months from that date.
5: Where the Commissioner is satisfied that a registered person is not carrying on a taxable activity the Commissioner may cancel that person's registration with effect from the last day of the taxable period during which the Commissioner was so satisfied, or from such other date as may be determined by the Commissioner, and shall notify that person of the date on which the cancellation of the registration takes effect.
5A: Any date determined by the Commissioner for the cancellation of registration under subsection (5) may be retrospective to a date not earlier than—
a: the last day of the taxable period during which taxable activity by the person ceased; or
b: the date on which the person was registered under this Act, if the Commissioner is satisfied that the person did not, from that date, carry on any taxable activity.
6:
7: In subsections (5) and (5A), for a non-resident person who is not registered under section 54B
8: If a unit title body corporate is a registered person on the date of introduction of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Bill and the registration is later cancelled after an application under subsection (2), the cancellation must take effect on or after the date on which the unit title body corporate applies for cancellation of the registration.
9: If a unit title body corporate is registered under this Act with effect from a date (the registration date
a: the date on which the unit title body corporate applies for cancellation of the registration:
b: the day that is 4 years after the registration date. Section 52(1) amended 22 June 1987 Goods and Services Tax Amendment Act 1987 Section 52(2) amended 2 June 2016 section 193(1) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 52(3) amended 2 June 2016 section 193(2) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 52(3) amended 25 November 2003 section 163(2) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 52(3) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 52(4) substituted 25 November 2003 section 163(3) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 52(5) substituted 1 August 1990 section 13 Goods and Services Tax Amendment Act 1990 Section 52(5A) inserted 1 August 1990 section 13 Goods and Services Tax Amendment Act 1990 Section 52(6) repealed 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 52(7) added 21 June 2005 section 160(1) Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 Section 52(7) amended 1 April 2014 section 140 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 52(8) inserted 24 February 2016 section 282 Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 Section 52(9) inserted 24 February 2016 section 282 Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016
53: Registered person to notify change of status
1: Subject to this Act, every registered person shall within 21 days notify the Commissioner
a: any change in the name, address,
b: any change of address from which, or the name in which, any taxable activity is carried on by that registered person:
c: any change whereby that registered person section 15(2)
ca: any change whereby that registered person now satisfies the conditions of section 15(4)
cb: any change whereby that registered person ceases to satisfy the conditions of section 19A
d: any change where that registered person, being a member of a GST group section 55 GST group provided that paragraphs (a) to (cb)
2: Any registered person who wishes to change, or to adopt, any trading name used or to be used by the registered person for the purpose of issuing or creating taxable supply information and supply correction information
a: the new trading name; and
b: the date from which that new trading name is to be used by the person for the purposes of this Act. Section 53(1) amended 2 June 2016 section 194(1) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 53(1)﻿(a) amended 18 March 2019 section 304 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 53(1)﻿(c) substituted 24 March 1988 section 2(4) Goods and Services Tax Amendment Act (No 2) 1988 Section 53(1)﻿(c) amended 17 July 2013 section 139 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 53(1)﻿(c) amended 1 October 2007 section 294 Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 53(1)﻿(ca) replaced 29 March 2018 section 402 Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 Section 53(1)﻿(cb) inserted 24 March 1988 section 2(4) Goods and Services Tax Amendment Act (No 2) 1988 Section 53(1)﻿(cb) amended 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 53(1)﻿(d) amended 1 April 2023 section 36(1) section 36(3) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 53(1) proviso amended 24 March 1988 section 2(5) Goods and Services Tax Amendment Act (No 2) 1988 Section 53(2) added 13 March 1992 Goods and Services Tax Amendment Act 1992 Section 53(2) amended 1 April 2023 section 36(2) section 36(3) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 53(2) amended 2 June 2016 section 194(2) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016
54: Liabilities not affected by ceasing to be registered person
The obligations and liabilities under this Act of any person in respect of anything done, or omitted to be done, by that person while that person is a registered person shall not be affected by the fact that that person ceases to be a registered person, or by the fact that, being a registered person, the Commissioner cancels that person's registration.
54B: Requirements for registration for certain non-resident suppliers
1: Despite section 51(3)
a: the person—
i: is registered for a consumption tax in the country or territory in which they are resident; or
ii: if the country or territory in which the person is resident does not have a consumption tax, or has a consumption tax that does not apply to the person's activities, is carrying on a taxable activity, and has a level of taxable activity in a country or territory that would render them liable to be registered under section 51(1)
b: for the first taxable period after the date of registration in New Zealand, the amount of the person’s input tax is likely to be more than $500 or the person is likely to be liable for tax levied under section 12(1)
c: the person's taxable activity does not involve a performance of services in relation to which it is reasonably foreseeable that the performance of the services will be received in New Zealand by a person other than in the course of making taxable or exempt supplies
d: the person is not making, or intending to make,—
i: a taxable supply in New Zealand; or
ii: a supply in New Zealand that would be a taxable supply if the person were registered under section 51
e: the person is not, and does not intend to become, a member of a group of companies that makes taxable supplies in New Zealand.
2: If a non-resident person who is registered under this section starts making taxable supplies, or becomes a member of a group of companies that is making taxable supplies, they are treated as registered on the date specified by the Commissioner under subsection (1), and not being registered under this section from the date on which they start making taxable supplies or the date on which they join the group, as applicable.
3: For timing purposes, the following days are treated as the end of a taxable period:
a: the day on which a person ceases to be eligible to be registered under this section:
b: the day on which a person who is otherwise registered becomes registered under this section.
4: Subsections (5) and (6) apply when a person—
a: is registered under section 51
b: has a branch or division; and
c: makes a taxable supply in New Zealand.
5: The person may be treated in relation to their branch or division as a separate person who may, if they meet the requirements of subsection (1), apply to the Commissioner for registration under this section.
6: In relation to the registration of the person, section 56(6) Section 54B inserted 1 April 2014 section 141 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 54B heading replaced 1 October 2016 section 68 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 54B(1)﻿(b) replaced 30 March 2017 section 367(1) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 54B(1)﻿(c) amended 30 March 2017 section 367(2) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 54B(1)﻿(d) replaced 30 March 2017 section 367(3) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 54B(1)﻿(e) inserted 30 March 2017 section 367(3) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 54B(4) inserted 30 March 2017 section 367(4) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 54B(5) inserted 30 March 2017 section 367(4) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 54B(6) inserted 30 March 2017 section 367(4) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017
54C: Cancellation of registration of certain non-residents
1: Section 52 section 54B
2: The Commissioner may, in addition to the powers provided under section 52(5)
a: the Commissioner is satisfied that the person no longer meets the requirements of section 54B(1)﻿(a)
b: for 3 consecutive taxable periods, the person has either not filed a return or has filed a late return.
3: When a person's registration is cancelled under subsection (2)﻿(b),—
a: the effective date of the cancellation is the last day of the second period
b: the person may not apply again for registration under section 54B Section 54C inserted 1 April 2014 section 141 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 54C heading replaced 30 March 2017 section 368 Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 54C(3)﻿(a) amended 30 June 2014 section 195(1) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 Section 54C(3)﻿(b) amended 30 June 2014 section 195(2) Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014
9: Special cases
55: GST groups
1A: This section applies to companies meeting the eligibility requirements of subsection (1) or (8) and choosing to form a GST group.
1AB: The rules in the section are intended to ensure that, with exceptions, the Act treats the members of a GST group as if the members were—
a: as the GST group, a single company—
i: operating separately each activity that each member would operate in the absence of this section; and
ii: making or receiving each supply that each member, as part of an activity, would be treated in the absence of this section as making to, or receiving from, a person who is not a member; and
iii: acting through the representative member in making elections, giving information other than taxable supply information or supply correction information
iv: acting through the issuing member, or the representative member if the GST group does not have an issuing member, in giving taxable supply information or supply correction information
b: as the GST group, sharing the responsibilities and liabilities under the Act of the single company; and
c: as individual members, sharing with the representative member some of the individual responsibilities and obligations under the Act arising for the representative member from each activity and supply that would be an activity and supply of the member in the absence of this section.
1AC: Subsections (1AD) to (1AI) apply to the members of a GST group—
a: except in relation to a supply of services that is treated by section 8(4B)
b: unless a provision of the Act expressly provides otherwise.
1AD: An activity that would in the absence of this section be an activity of a member of the GST group is carried on by—
a: the representative member, as an activity of a registered person separate from other activities of the representative member; and
b: no member of the GST group other than the representative member.
1AE: A supply that would in the absence of this section be a supply made by a member of the GST group to a person—
a: is a supply made as a registered person by the representative member to the person, if the person is not a member of the GST group; or
b: is disregarded for the purposes of calculating the tax payable by the GST group for a taxable period, if the person is a member of the GST group, except if another provision requires otherwise.
1AF: A supply of goods and services that would in the absence of this section be made by a member of the GST group, and not be a taxable supply, is a supply by the representative member.
1AG: A supply of goods and services that would in the absence of this section be made to a member of the GST group, other than a supply that would in the absence of this section be a taxable supply by another member, is a supply to the representative member as a registered person.
1AH: If goods and services are acquired, or produced, or applied, by a member of a GST group (the new member section 21(1)
a: acquired, or produced, or applied, the goods and services at the time with a percentage intended use for making taxable supplies equal to the percentage intended use of the new member; and
b: made claims for input tax and adjustments of output tax, relating to the goods and services, when the same claims were made by the new member before becoming a member of the GST group.
1AI: Information provided to a member of the GST group under section 78F
1AJ: Subsections (1AK) to (8) apply to the members of a GST group unless a provision of the Act expressly provides otherwise or the context requires another result.
1AK: When part of the GST group, the members of the GST group have the same taxable period under sections 15 to 15E section 19 19A
1AL: The representative member is—
a: responsible for making elections of the GST group under the Act and making the returns, giving the information, subject to subsection (1AM), and keeping the records, required by the Act for the GST group; and
b: treated as paying tax paid by a member of the GST group; and
c: responsible for paying the tax payable by the members of the GST group, subject to subsection (1AO)﻿(a).
1AM: A GST group may choose that the taxable supply information or supply correction information active member
a: in the name of the active member, by the active member; or
b: in the name of the representative member, by—
i: the representative member; or
ii: a member (the issuing member
1AN: The representative member, and an issuing member or active member, of a GST group must meet the requirements of sections 19J 19L taxable supply information and supply correction information
1AO: A person who is, or has been, a member of the GST group has the following responsibilities and liabilities:
a: joint and several liability with the other members of the GST group under subsections (1AP) and (1AQ) for all tax payable, and not paid, by the representative member for each taxable period, or part of a taxable period, in which the member is part of the GST group; and
b: the responsibilities and liabilities of a member of the GST group under the provisions of—
i: sections 24 25
ii: section 75
iii: Part 8
1AP: If a member (the leaving member
a: the assessment for the liability of the GST group is made after the later of—
i: the date on which the leaving member is treated as leaving the GST group:
ii: the date of the event that causes the leaving member to be treated as leaving the GST group; and
b: the amount assessed is more than an earlier assessment of the GST group for the taxable period or part of the taxable period; and
c: the Commissioner considers that the removal of the liability will not significantly prejudice the recovery, or likely recovery, of the amount of tax assessed for the taxable period or part of the taxable period; and
d: the Commissioner notifies the leaving member and the representative member that the requirements of paragraph (c) are met.
1AQ: The responsibilities under subsection (1AO) of a person who is, or has been a member of a GST group—
a: are unaffected by the person’s ceasing to be part of the GST group or by a representative member’s ceasing to exist; and
b: may be relieved by the Commissioner under subsection (1AP).
1: For the purposes of this Act, 2 or more companies (the companies GST group
a: at a time and under section IC 3 eligibility group
i: is a group of companies; or
ii: is part of a group of companies; or
iii: would be a group of companies but for 1 or more members being a multi-rate PIE or a look-through company; or
iv: would be a group of companies but for 1 or more members being a listed PIE; and
b: the companies meet either or both of the following requirements:
i: at the time, are each a registered person:
ii: as the eligibility group and in a 12-month period that includes the time, make supplies to persons outside the eligibility group that are taxable supplies, or would be taxable supplies if made by a registered person, and that have a total value of at least 75% of the total value of the taxable supplies and other supplies made in that period by persons in the eligibility group to persons outside the eligibility group.
1B: Despite subsections (1) and (4)﻿(a), a person registered under section 54B GST group GST group resulting GST group
2: Where 2 or more companies apply to be members of a GST group GST group GST group
3: In any application made under subsection (2)
a: one of the companies shall be nominated to be the representative member; and
b: the company nominated under paragraph (a) must be a registered person.
4: Where any companies are members of a GST group
a: a further company eligible to be a member of that GST group GST group
b: one of the members of that GST group GST group
c: another member of the GST group
d: that GST group GST group section,— and the Commissioner shall grant the application from the beginning of such taxable period as is determined by the Commissioner or from the date required by subsection (4AA)
4AA: If the representative member applies under subsection (4) for a company to be a member of the GST group and the company is incorporated less than 12 months before the application and is eligible to be a member when it is incorporated, the Commissioner must grant the application from whichever date the representative member chooses of—
a: the date of the company’s incorporation:
b: the start of the taxable period following the date of the company’s incorporation.
4AA:
4A: The appointment of a specified agent, as defined in section 58(1) GST group
5: Where any member of a GST group
a: that member or the representative member of that GST group section 53(1)﻿(d)
b: the Commissioner is otherwise satisfied that any member of a GST group the Commissioner shall, by notice
6: For the purposes of this Act, any notice served in accordance with this Act, which is addressed to the representative member of a GST group is the GST group
7:
7B:
8: If the members of a group of 2 or more registered persons include a person that is not a company or is a limited partnership and the Commissioner is satisfied in relation to the members of the group that—
a: one of them controls each of the others; or
b: one person controls all of them; or
c: 2 or more persons the Commissioner may accept that the registered persons are a GST group, and subsections (2) to (6) apply to the group of registered persons as a GST group and to each of the registered persons as a member of the GST group. Section 55 replaced 30 March 2022 section 37(1) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1A) inserted 30 March 2022 section 37(2) section 37(20) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AB) inserted 30 March 2022 section 37(2) section 37(20) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AB)﻿(a)﻿(iii) amended 1 April 2023 section 37(6) section 37(21) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AB)﻿(a)﻿(iv) amended 1 April 2023 section 37(6) section 37(21) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AC) inserted 30 March 2022 section 37(2) section 37(20) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AD) inserted 30 March 2022 section 37(2) section 37(20) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AE) inserted 30 March 2022 section 37(2) section 37(20) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AF) inserted 30 March 2022 section 37(2) section 37(20) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AG) inserted 30 March 2022 section 37(2) section 37(20) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AH) inserted 30 March 2022 section 37(2) section 37(20) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AI) inserted 30 March 2022 section 37(2) section 37(20) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AJ) inserted 30 March 2022 section 37(2) section 37(20) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AK) inserted 30 March 2022 section 37(2) section 37(20) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AL) inserted 30 March 2022 section 37(2) section 37(20) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AM) inserted 30 March 2022 section 37(2) section 37(20) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AM) amended 1 April 2023 section 37(7) section 37(21) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AN) inserted 30 March 2022 section 37(2) section 37(20) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AN) amended 1 April 2023 section 37(8)﻿(a) section 37(21) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AN) amended 1 April 2023 section 37(8)﻿(b) section 37(21) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AO) inserted 30 March 2022 section 37(2) section 37(20) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AP) inserted 30 March 2022 section 37(2) section 37(20) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1AQ) inserted 30 March 2022 section 37(2) section 37(20) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1) substituted 19 December 2007 section 279(1) Taxation (Business Taxation and Remedial Matters) Act 2007 Section 55(1) amended 30 March 2022 section 37(3) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1)﻿(a) replaced 30 March 2022 section 37(4) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1)﻿(b) amended 30 March 2022 section 37(5)﻿(a) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1)﻿(b)﻿(ii) replaced 30 March 2022 section 37(5)﻿(b) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1B) inserted 1 April 2014 section 142 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 55(1B) amended 30 March 2022 section 37(9)﻿(a) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(1B) amended 30 March 2022 section 37(9)﻿(b) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(2) amended 30 March 2022 section 37(10) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(3) substituted 18 December 2006 section 218(3) Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 Section 55(3) amended 30 March 2022 section 37(11) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(4) amended 30 March 2022 section 37(12)﻿(a) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(4)﻿(a) amended 30 March 2022 section 37(12)﻿(a) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(4)﻿(b) amended 30 March 2022 section 37(12)﻿(a) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(4)﻿(c) amended 30 March 2022 section 37(12)﻿(a) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(4)﻿(d) amended 30 March 2022 section 37(12)﻿(a) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(4)﻿(d) amended 30 March 2022 section 37(12)﻿(b) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(4) amended 18 December 2006 section 218(6)﻿(b) Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 Section 55(4)﻿(d) amended 18 December 2006 section 218(6)﻿(a) Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 Section 55(4AA) inserted 30 March 2022 section 37(13) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(4AA) repealed 18 December 2006 section 218(7) Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 Section 55(4A) inserted 10 October 2000 section 110(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 55(4A) amended 30 March 2022 section 37(14) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(5) amended 30 March 2022 section 37(15) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(5) amended 2 June 2016 section 195 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 55(5)﻿(a) substituted 23 September 1997 section 115 Taxation (Remedial Provisions) Act 1997 Section 55(5)﻿(a) amended 30 March 2022 section 37(15) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(5)﻿(b) amended 30 March 2022 section 37(15) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(6) amended 30 March 2022 section 37(16)﻿(a) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(6) amended 30 March 2022 section 37(16)﻿(b) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(6) amended 30 March 2022 section 37(16)﻿(c) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(7) repealed 30 March 2022 section 37(17) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(7B) repealed 30 March 2022 section 37(17) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(8) amended 30 March 2022 section 37(18) section 37(19) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55(8) amended 30 March 2017 section 369(2) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 55(8)﻿(c) amended 1 August 1990 section 14 Goods and Services Tax Amendment Act 1990
55B: Supplier group and issuing member
1: Members of a group of 2 or more registered persons (the supplier group issuing member section 19J section 5(2) supplying member
2: The requirements of this subsection are met if—
a: the members of the supplier group agree that—
i: the issuing member must issue taxable supply information and supply correction information
ii: each member of the supplier group other than the issuing member must not issue taxable supply information and supply correction information
b: the agreement includes the name, address, and registration number of each member of the supplier group; and
c: if the terms of the agreement differ from normal commercial terms agreed earlier between the members of the supplier group, each member of the supplier group records the circumstances taken into account by the member in entering the agreement; and
d: The Commissioner has not invalidated the agreement because the Commissioner considers that the members of the supplier group have failed to satisfy the requirements of the agreement and this section.
3: The issuing member of a supplier group is responsible for the GST record-keeping that the issuing member has agreed to be responsible for under subsection (1)
4: When the members of a supplier group agree to have, or to change, the issuing member for the supplier group, the issuing member must notify the Commissioner of the member’s role and provide the Commissioner with an undertaking to meet the obligations of an issuing member for the supplier group. Section 55B inserted 30 March 2022 section 38(1) section 38(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55B(1) amended 1 April 2023 section 38(2) section 38(5) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55B(2)﻿(a)﻿(i) amended 1 April 2023 section 38(3) section 38(5) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55B(2)﻿(a)﻿(ii) amended 1 April 2023 section 38(3) section 38(5) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 55B(3) amended 31 March 2023 section 149(1) section 149(2) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023
56: Branches and divisions
1: Where a taxable activity is carried on by any registered person in branches or divisions, that registered person may apply
2: The Commissioner shall, upon application made pursuant to subsection (1), register any branch or division as a separate registered person if each such branch or division maintains an independent system of accounting and can be separately identified by reference to the nature of the activities carried on or the location of the branch or division, and where any such branch or division is so separately registered, any taxable activity carried on by that branch or division shall, to that extent, be deemed not to be carried on by the registered person first mentioned in subsection (1).
3: The registered person first mentioned in subsection (1) may, at any time, apply
4: The Commissioner shall cancel the separate registration of any branch or division on the cancellation of the registration of the registered person first mentioned in subsection (1).
5: Where any branch or division separately registered pursuant to this section makes default in doing anything required to be done under this Act, the liability for the doing of that thing shall revert to the registered person first mentioned in subsection (1).
6: Notwithstanding the foregoing provisions of this section, for the purposes of sections 15 to 15E 19 19A placement sections 15 to 15E Section 56(1) amended 2 June 2016 section 196(1) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 56(3) amended 2 June 2016 section 196(2) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 56(6) amended 1 October 2007 Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 56(6) amended 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 56(6) amended 24 March 1988 section 2(7)﻿(b) Goods and Services Tax Amendment Act (No 2) 1988
56B: Branches and divisions in relation to certain imported
goods and services
1: This section applies to a supply of goods or services section 8(4B) made in New Zealand, or in relation to which an output tax liability under section 20(3JC)
2: If a person carries on activities both inside and outside New Zealand through branches or divisions—
a: each branch or division is treated as being a separate person; and
b: a branch or division inside New Zealand is treated as being a resident; and
c: a branch or division outside New Zealand is treated as being a non-resident; and
d: an activity carried on by a branch or division is treated as being carried on separately by the branch or division.
3: For the purpose of this section, a head office of a company is a branch or division of the company.
4: This section applies whether or not a branch or division of the person is registered under section 56 Section 56B inserted 1 January 2005 section 165 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 56B heading amended 1 December 2019 section 35(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 56B(1) amended 1 December 2019 section 35(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 56B(1) amended 1 October 2016 section 70 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
57: Unincorporated bodies
1:
2: Where an unincorporated body
a: the members of that body shall not themselves be registered or liable to be registered under this Act in relation to the carrying on of that taxable activity; and
b: any supply of goods and services made in the course of carrying on that taxable activity shall be deemed for the purposes of this Act to be supplied by that body, and shall be deemed not to be made by any member of that body; and
c: any supply of goods and services to, or acquisition of goods by, any member of that body acting in the capacity as a member of that body and in the course of carrying on that taxable activity, not being a supply to which paragraph (b) applies, shall be deemed for the purposes of this Act to be supplied to or acquired by that body, and shall be deemed not to be supplied to or acquired by that member; and
d: that registration shall be in the name of the body, or where that body is the trustees of a trust, in the name of the trust; and
e: subject to subsections (3) to (3B)
3: Despite this section, a member is jointly and severally liable with other members for all tax payable by the unincorporated body during the taxable periods, or part of taxable periods as the case may be, the person is a member of the body, even if the person is no longer a member of the body.
3A: When an individual member dies, the member's estate is severally liable in due course of administration for tax payable by the unincorporated body to the extent that it remains unpaid, whether or not the individual was a member on the date of their death.
3B: For the purpose of subsections (3) and (3A), a member does not stop being a member of the unincorporated body until the date on which the Commissioner is notified
4: For the purposes of this Act, any notice served in accordance with this Act which is addressed to an unincorporated body
5: Subject to subsection (6), where anything is required to be done pursuant to this Act by or on behalf of an unincorporated body provided that any such thing done by 1 member shall be sufficient compliance with any such requirement.
6: Notwithstanding anything in this section, but subject to subsections (3) to (3B) an unincorporated body
a: every member holding office as president, chairman, treasurer, secretary, or any similar office; or
b: in default of any such member, every member holding office as a member of a committee: provided that if it is done by any official or committee member, referred to in paragraph (a) or paragraph (b), that shall be sufficient compliance with any such requirement. Section 57(1) repealed 10 October 2000 section 111(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 57(2) amended 10 October 2000 section 111(2) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 57(2)﻿(e) amended 10 October 2000 section 111(3) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 57(3) substituted 10 October 2000 section 111(4) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 57(3A) inserted 10 October 2000 section 111(4) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 57(3B) inserted 10 October 2000 section 111(4) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 57(3B) amended 2 June 2016 section 197 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 57(4) amended 10 October 2000 section 111(5) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 57(5) amended 10 October 2000 section 111(6) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 57(6) amended 10 October 2000 section 111(6) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 57(6) amended 10 October 2000 section 111(7) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 57(6) amended 8 August 1986 Goods and Services Tax Amendment Act 1986
58: Personal representative, liquidator, receiver, etc
1: In this section and sections 46 55 agency period
a: the date on which some person other than the incapacitated person or the specified agent is registered in respect of the taxable activity; or
b: the date on which there is no longer a person acting as a specified agent in relation to the incapacitated person incapacitated person liquidation, receivership, or voluntary administration specified agent liquidator, receiver, or administrator
1A: Despite sections 5(2) 60
1B: If a person becomes a specified agent and has been appointed to carry on part of the incapacitated person's taxable activity only, subsection (1A) applies only to the part of the taxable activity the person has been appointed to carry on.
1C: Subject to section 46(7) section 20(3)
1D: A specified agent is not personally liable for any liabilities incurred under this Act by the incapacitated person on or before the date the agency period starts.
2: Where a mortgagee is in possession of any land or other property previously mortgaged by the mortgagor, being a registered person, the Commissioner may, from the date on which the mortgagee took possession of that land or other property, until such time as the mortgagee ceases to be in possession of that land or other property, deem the mortgagee, in any case where and to the extent that the mortgagee carries on any taxable activity of the mortgagor, to be a registered person.
3: Any person who becomes a specified agent, or who as a mortgagee in possession carries on any taxable activity of the mortgagor, shall, within 21 days of becoming a specified agent or commencing that taxable activity of the mortgagor notify the Commissioner or voluntary administration Section 58(1) substituted 14 December 1992 Goods and Services Tax Amendment Act (No 2) 1992 Section 58(1) amended 10 October 2000 section 112(1)﻿(a) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 58(1) agency period substituted 10 October 2000 section 112(1)﻿(b) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 58(1) incapacitated person amended 1 April 2023 section 150(1) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 58(1) specified agent amended 1 April 2023 section 150(2) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 58(1A) substituted 10 October 2000 section 112(2) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 58(1B) inserted 10 October 2000 section 112(2) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 58(1C) inserted 10 October 2000 section 112(2) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 58(1C) amended 25 November 2003 section 166(1) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 58(1D) inserted 10 October 2000 section 112(2) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 58(3) amended 1 April 2023 section 150(3) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 58(3) amended 2 June 2016 section 198 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 58(3) amended 14 December 1992 Goods and Services Tax Amendment Act (No 2) 1992
59: Liability of agent of absentee principal for returns and tax
1: For the purposes of this section, the term absentee
a: any person, not being a company, who is for the time being out of New Zealand:
b: any company, not being a company incorporated in New Zealand, unless it has a fixed or permanent place in New Zealand relating to the carrying on of any taxable activity in New Zealand in its own name:
c: any company, not being a company incorporated in New Zealand, which is declared by the Commissioner to be an absentee for the purposes of this Act by notice given to that company or to its agent or attorney in New Zealand, so long as that declaration remains unrevoked.
2: Every person who in New Zealand carries on any taxable activity for and on behalf of a principal who is an absentee shall, for the purposes of this Act, be the agent of that principal in respect of that taxable activity so carried on in New Zealand by means of that agent, and the agent shall make returns and be liable for any tax charged or levied under this Act.
60: Agents and auctioneers
1: Subject to this section, for the purposes of this Act, where an agent makes a supply of goods and services for and on behalf of any other person who is the principal of that agent, that supply shall be deemed to be made by that principal and not by that agent: provided that, where that supply is a taxable supply, that agent, being a registered person, may, notwithstanding anything in this Act, issue taxable supply information or supply correction information the taxable supply information or supply correction information taxable supply information or supply correction information
1A: Despite subsection (1), subsection (1AB) applies to an agent who—
a: is resident in New Zealand; and
b: makes supplies of distantly taxable goods or remote services
1AB: The principal and the agent may agree that the agent, and not the principal, is treated as making the supply in the course and furtherance of a taxable activity carried on by them.
1B: Despite subsection (1), when a principal and their agent agree , and record their agreement in a document
a: a supply of goods and services from the principal to the agent; and
b: a supply of those goods and services from the agent to the recipient, treating the agent as if they were the principal for the purpose of the supply.
1C: For the purposes of sections 60C 60D or a supplier who makes supplies of goods or services
a: a supply of goods and services
b: a supply of those goods and services goods and services
2: Subject to this section, for the purposes of this Act, where any registered person makes a taxable supply of goods and services to an agent who is acting on behalf of another person who is the principal for the purposes of that supply, that supply shall be deemed to be made to that principal and not to that agent: provided that that agent may nevertheless request that that agent be issued with taxable supply information taxable supply information or supply correction information
2B: Despite subsection (2), when a principal and their agent agree, and record their agreement in a document, either in relation to a particular supply or for a type of supply, that this subsection applies to a supply of goods or services, the supply by a person is treated for the purposes of the Act as 2 separate supplies, being—
a: a supply of goods and services from the person to the agent, treating the agent as if they were the principal for the purpose of the supply; and
b: a supply of those goods and services from the agent to the principal.
3: Where taxable supply information or supply correction information
a: by an agent pursuant to subsection (1); or
b: to an agent pursuant to subsection (2),— the agent shall maintain sufficient records to enable the name and address and registration number (if any) of the principal to be ascertained.
4: For the purposes of subsection (5), the expression auctioneer principal
5: Notwithstanding anything in the foregoing provisions of this section, where the principal and the auctioneer agree to have a supply by auction of any goods, not being a taxable supply, treated as if that supply had been made by that auctioneer and not by that principal, that supply shall be charged with tax as if it were made by that auctioneer in the course or furtherance of that auctioneer's taxable activity and that auctioneer may—
a: recover the amount of tax charged on that supply from that principal as a debt together with the costs of recovery in any court of competent jurisdiction; or
b: retain or deduct the same out of any money in that auctioneer's hands belonging or payable to that principal.
6: Notwithstanding anything in subsection (2), where any registered person makes a taxable supply (not being a supply that is charged with tax at the rate of 0% pursuant to section 11 11A , 11AB 11B
a: that principal is a non-resident
b: that supply is directly in connection with either the exportation, or the arranging thereof, of goods from New Zealand to any country or place outside New Zealand, or the importation, or the arranging thereof, of goods to New Zealand from any country or place outside New Zealand, including, in either case, the transportation of those goods within New Zealand as part of that exportation or, as the case may be, importation,— this Act shall, where that agent and that principal agree, have effect as if that supply were made to that agent and not to that principal.
7: Despite subsection (1), a supply of goods, being goods to which section 12(1)
a: the principal is a non-resident
b: the agent is a resident
c: the principal and agent agree that the supply was made by the agent and not by the principal. Section 60(1) substituted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 60(1) proviso amended 1 April 2023 section 39(1)﻿(a) section 39(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 60(1) proviso amended 1 April 2023 section 39(1)﻿(b) section 39(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 60(1A) inserted 1 October 2016 section 71(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 60(1A)﻿(b) amended 1 December 2019 section 36(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 60(1AB) inserted 1 October 2016 section 71(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 60(1B) inserted 17 July 2013 section 143 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 60(1B) amended 2 June 2016 section 199 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 60(1C) inserted 1 October 2016 section 71(2) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 60(1C) amended 1 December 2019 section 36(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 60(1C)﻿(a) amended 1 December 2019 section 36(3) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 60(1C)﻿(b) amended 1 December 2019 section 36(4) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 60(2) proviso amended 1 April 2023 section 39(2)﻿(a) section 39(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 60(2) proviso amended 1 April 2023 section 39(2)﻿(b) section 39(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 60(2B) inserted 30 March 2017 section 370 Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 60(3) amended 1 April 2023 section 39(3) section 39(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 60(6) added 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 60(6) amended 1 July 2003 section 161 Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 Section 60(6) amended 10 October 2000 section 113(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 60(6)﻿(a) amended 25 November 2003 section 167(1) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 60(7) added 10 October 2000 section 113(2) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 60(7)﻿(a) amended 25 November 2003 section 167(1) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 60(7)﻿(b) amended 25 November 2003 section 167(2) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003
60B: Nominated recipients of supplies
1: This section applies when a person ( person A person B person C
2: If person B pays the full consideration for the supply, the supply is treated as a supply from person A to person B and the existence of person C is ignored.
3: If person C pays the full consideration for the supply, the supply is treated as a supply from person A to person C and the existence of person B is ignored.
4: If person B and person C each pay part of the consideration for the supply, the supply is treated as a supply from person A to person B. However, person B and person C may agree, recording their agreement in a document, that
5:
6: Despite subsections (2) to (4)
7: Section 60 Section 60B inserted 1 April 2011 section 20(1) Taxation (GST and Remedial Matters) Act 2010 Section 60B(4) amended 2 June 2016 section 200 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 60B(5) repealed 2 November 2012 section 224(1) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 60B(6) amended 2 November 2012 section 224(2) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012
60C: Electronic marketplaces
1: Subsection (2) applies when—
a: a supply of goods or a supply of remote services
ab: for a marketplace operated by a resident person, the underlying supplier is a non-resident person; and
b:
c: the supply is of services made to a person resident in New Zealand or of goods made to a person involving delivery at a place in New Zealand.
2: The operator of the marketplace is treated as making, in the course or furtherance of recipient
a: remote services if the recipient is resident in New Zealand:
b: items of goods, meeting the requirements of section 4B(1)﻿(a) to (d)
i: the underlying supplier of the goods is a non-resident; and
ii: the operator or the underlying supplier makes or arranges or assists the delivery of the supply to the recipient at a place in New Zealand; and
iii: each item has an estimated customs value under section 10B section 10C
2B: Subsection (2) does not apply to a supply if—
a: the documentation provided to the recipient identifies the supply as made by the underlying supplier and not the marketplace; and
b: the underlying supplier and the operator of the marketplace have agreed that the supplier is liable for the payment of tax; and
c: the marketplace does not—
i: authorise the charge for the supply to the recipient:
ii: make or authorise the delivery of the supply to the recipient:
iii: directly or indirectly set a term or condition under which the supply is made.
2C: Subsection (2) does not apply to a supply of goods if—
a: the underlying supplier of the goods is a non-resident that has a branch in New Zealand; and
b: the operator of the marketplace treats the underlying supplier as a New Zealand resident in relation to the supply; and
c: in treating the underlying supplier as a New Zealand resident, the operator of the marketplace meets the requirements of section 60G(1)
3: If, in relation to a single supply of goods or supply of remote services
4: This section overrides section 60(1) Section 60C inserted 1 October 2016 section 72 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 60C(1)﻿(a) amended 1 December 2019 section 37(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 60C(1)﻿(ab) inserted 23 March 2020 section 251(1) section 251(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 60C(1)﻿(b) repealed 1 December 2019 section 37(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 60C(1)﻿(c) replaced 1 December 2019 section 37(3) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 60C(2) replaced 1 December 2019 section 37(4) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 60C(2) amended 1 April 2023 section 152(2) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 60C(2B) inserted 1 December 2019 section 37(4) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 60C(2C) inserted 1 December 2019 section 37(4) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 60C(3) amended 1 December 2019 section 37(5) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
60D: Approved marketplaces
1: This section applies when—
a: a supply of goods by a non-resident person or a supply of remote services,
ab: for a marketplace operated by a resident person, the underlying supplier is a non-resident person; and
b:
c: the supply is of services made to a person resident in New Zealand or of goods made to a person involving delivery at a place in New Zealand.
2: The operator of the marketplace is treated as making, in the course of furtherance of a taxable activity, a supply to a person (the recipient
a: the Commissioner, in the exercise of a discretion, approves an application under this subsection by the operator of the marketplace; and
b: for a supply of remote services, the recipient is resident in New Zealand; and
c: for a supply of goods meeting the requirements of section 4B(1)﻿(a) to (d)
i: the underlying supplier of the goods is a non-resident; and
ii: the operator or the underlying supplier makes or arranges or assists the delivery of the goods to the recipient at a place in New Zealand; and
iii: the supply is of items of goods for which each item has an estimated customs value under section 10B section 10C
3: In the exercise of the discretion referred to in subsection (2), the Commissioner may take into account the following:
a: whether the marketplace is best placed to determine whether the recipient of the supply of goods or
i: is resident in New Zealand:
ii: is a registered person:
b: whether the number of underlying suppliers to the marketplace means that return requirements are better satisfied by the marketplace rather than the individual underlying suppliers.
4: This section overrides section 60(1) Section 60D inserted 1 October 2016 section 72 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 60D(1)﻿(a) amended 1 December 2019 section 38(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 60D(1)﻿(ab) inserted 23 March 2020 section 252(1) section 252(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 60D(1)﻿(b) repealed 1 December 2019 section 38(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 60D(1)﻿(c) replaced 1 December 2019 section 38(3) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 60D(2) replaced 1 December 2019 section 38(4) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 60D(3)﻿(a) amended 1 December 2019 section 38(5) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
60E: When redeliverer is supplier of distantly taxable goods
1: For a supply of goods to a recipient, a redeliverer of the goods is the supplier of the goods if—
a: no operator of an electronic marketplace is the supplier under section 60C(2) and (3)
b: no operator of a marketplace is the supplier under section 60D(2) and (3)
c: no seller or underlying supplier of the goods makes or arranges or assists the delivery of the supply to the recipient at a place in New Zealand; and
d: the supply meets the requirements for being a supply of distantly taxable goods when treated as being made by the redeliverer.
2: If, in relation to a single supply of distantly taxable goods to a recipient, more than 1 redeliverer is liable to account for tax on the supply, the person treated as making the supply is the redeliverer that first enters into an arrangement relating to the supply with the recipient, or, in the absence of such an arrangement, first enters into an arrangement relating to the supply with a person acting on behalf of the recipient. Section 60E inserted 1 December 2019 section 39 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
60F: Operator of marketplace or redeliverer making return based on faulty information
1: This section applies to a registered person who is an operator of an electronic marketplace, or a redeliverer, and makes a return of a deficient amount for the total output tax allocated to a taxable period (the return period
a: relating to a supply of goods made through the marketplace or by the registered person as operator of the marketplace, or by the registered person as a redeliverer; and
b: provided by a seller or underlying supplier of the goods or by a recipient of the supply of goods.
2: An amount equal to the deficiency in the total amount of output tax returned that arises from the inaccurate, incomplete, insufficient, or misleading information is treated as being a reduction in the total output tax allocated to the return period, if the registered person meets the requirements of section 60G Section 60F inserted 1 December 2019 section 39 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
60G: Requirements for treatment of information by operator of marketplace or redeliverer
1: A registered person that is an operator of an electronic marketplace or a redeliverer and makes a return of a deficient amount of output tax as described in section 60F
a: the amount of the deficiency arises from inaccurate, incomplete, insufficient, or misleading information, which may relate to the matters described in subsection (2); and
b: for information relating to the matters described in subsection (2)﻿(a) to (c), the registered person meets—
i: the applicable requirements of subsections (3) to (6), which relate to the obtaining and the interpretation of the information:
ii: applicable requirements that are alternative to the requirements referred to in subparagraph (i) and are prescribed or agreed to by the Commissioner under subsection (7); and
c: the registered person relies on the information referred to in paragraph (a) in good faith and on reasonable grounds.
2: Inaccurate, incomplete, insufficient, or misleading information referred to in subsection (1)﻿(a) may relate to—
a: the residency of the underlying supplier of the goods:
b: the place to which the goods are delivered:
c: the amount of consideration paid for the supply by the recipient of the supply:
d: whether the registered person is the supplier of the goods:
e: the amount of tax charged under section 8
3: This subsection requires a registered person that is an operator of an electronic marketplace and does not know the residency of an underlying supplier of goods in a supply, to—
a: treat the underlying supplier of the goods as a non-resident, if paragraph (b) does not require a different treatment; or
b: treat the underlying supplier of the goods as a resident if the registered person has—
i: information that the underlying supplier is a company that is incorporated in New Zealand or has its centre of management in New Zealand:
ii: a New Zealand business number for the underlying supplier:
iii: 2 or more items of information listed in subsection (6) that are non-contradictory and support the conclusion that the underlying supplier is resident in New Zealand and are more reliable than items of information listed in subsection (6) that are held by the registered person and support the conclusion that the underlying supplier is not resident in New Zealand.
4: This subsection requires a registered person that is an operator of an electronic marketplace and does not know the address to which the goods in a supply are to be delivered to—
a: treat the supply of goods as being made to the recipient at a place in New Zealand if the registered person—
i: has 2 items of information listed in subsection (6) that are non-contradictory and support the conclusion that the recipient is located in New Zealand; and
ii: does not have 2 items of information listed in subsection (6) that are non-contradictory, and support the conclusion that the recipient is located in a country or territory other than New Zealand, and are more reliable for determining the location of the recipient than are the items referred to in subparagraph (i); or
b: treat the supply of goods as being made to the recipient at a place outside New Zealand if a conclusion under paragraph (a) that the person is located at a place in New Zealand is not supported by items of information that are held by the registered person and meet the requirements of more than 1 paragraph of subsection (6).
5: This subsection requires a registered person that is a redeliverer for a supply of distantly taxable goods to a recipient, and is not responsible for the purchase of the goods in the supply, to—
a: require the recipient of the supply to disclose the value of the consideration before the delivery of the supply; and
b: obtain a receipt issued by the seller of the goods or other confirmation by the seller of the value of the consideration for the supply.
6: The items of information referred to in subsections (3)﻿(b)﻿(iii) and (4)﻿(a) and (b) for a person and a supply of goods are—
a: an address of a physical location for the person such as a mailing or billing address:
b: if the person is the underlying supplier for the supply, a New Zealand GST registration number for the person:
c: bank details (including the account the person uses for making payments, or the billing address held by the bank, or the account to which the registered person makes payments of amounts owed to the person):
d: the internet protocol address of the device used by the person or another geolocation method:
e: the mobile country code of the international mobile subscriber identity stored on the subscriber identity module card used by the person:
f: the location of the person’s fixed land line:
g: if the person is the underlying supplier, the location from where the goods are being shipped:
h: other commercially relevant information.
7: The Commissioner may—
a: prescribe requirements that are alternative to those listed in 1 or more of subsections (3) to (6):
b: agree with a person who is a marketplace operator or redeliverer on requirements that are alternative to those listed in 1 or more of subsections (3) to (6), including requirements for the amount of information to be obtained by the person that is relevant to a subsection and for the use and content of methods for checking the accuracy of the information and the conclusions drawn from the information.
8: In prescribing or agreeing to alternative requirements for a person under subsection (7), the Commissioner may take into account—
a: commercially relevant information that is available to the person and the reliability of this information:
b: the cost for the person of complying with the requirements:
c: the existing methods available to the person for preventing and remedying situations where incorrect information is provided. Section 60G inserted 1 December 2019 section 39 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
61: Liability for tax payable by company left with insufficient assets
Section HD 15 and as if the term time bar referred to the time bar under section 108A Section 61 substituted 10 October 2000 section 114(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 61 amended 30 March 2017 section 371 Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 61 amended 1 April 2008 section ZA 2(1) Income Tax Act 2007
61A: Company amalgamations
1: For the purposes of this section, the terms amalgamated company amalgamating company amalgamation section YA 1
2: In any case where—
a: an amalgamation occurs; and
b: either—
i: the amalgamated company is a registered person immediately after the amalgamation; or
ii: an amalgamating company is not a registered person immediately before the amalgamation; and
c: the amalgamated company acquires in the course of the amalgamation any goods and services of the amalgamating company,— then for the purposes of this Act—
d: the amalgamating company shall be deemed not to have made a supply of those goods and services; and
e: except to the extent to which paragraph (f) applies, the amalgamated company shall be deemed not to have paid or provided any consideration for the acquisition of those goods and services; and
f: sections 21 to 21H
i: at the same time; and
ii: with the same purposes; and
iii: for the same cost,— as the amalgamating company.
3: In any case where—
a: an amalgamation occurs; and
b: the amalgamated company is not a registered person immediately after the amalgamation; and
c: an amalgamating company is a registered person immediately before the amalgamation; and
d: the amalgamated company acquires in the course of the amalgamation any goods and services of the amalgamating company,— then for the purposes of this Act the goods and services shall be deemed to have been supplied by the amalgamating company, and acquired by the amalgamated company, for a consideration equal to the open market value of the goods and services at the date of the amalgamation.
4: Where—
a: an amalgamating company ceases to exist on an amalgamation; and
b: but for this subsection, section 21I(3) then for the purposes of this Act the supply shall be deemed to be made by the amalgamated company (as if, in any case where the amalgamated company is not at that date a registered person, the amalgamated company were a registered person), and not by the amalgamating company, on that date.
5: Where—
a: an amalgamating company ceases to exist on an amalgamation; and
b: if the amalgamated company were the same person as the amalgamating company, a deduction would have been available to, or tax would have been charged to, the amalgamated company under section 26 the deduction shall be available to, or tax will be charged to, the amalgamated company.
6: Where an amalgamating company ceases to exist on an amalgamation, section 51(1)﻿(a) Section 61A inserted 14 September 1994 section 8 Goods and Services Tax Amendment Act 1994 Section 61A(1) substituted 1 April 1995 Income Tax Act 1994 Section 61A(1) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 61A(2)﻿(f) amended 10 October 2000 section 115(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 61A(4)﻿(b) amended 10 October 2000 section 115(2) Taxation (GST and Miscellaneous Provisions) Act 2000
61B: Application of Part 9 of Tax Administration Act 1994
Section 61B repealed 21 December 2004 section 159 Taxation (Venture Capital and Miscellaneous Provisions) Act 2004
10: Penalties
Part 10 repealed 26 July 1996 section 19(1) Goods and Services Tax Amendment Act 1996
62: Offences
Section 62 repealed 26 July 1996 section 19(1) Goods and Services Tax Amendment Act 1996
63: Officers and employees of corporate bodies
Section 63 repealed 26 July 1996 section 19(1) Goods and Services Tax Amendment Act 1996
64: Proceedings to be taken summarily
Section 64 repealed 26 July 1996 section 19(1) Goods and Services Tax Amendment Act 1996
65: Information may charge several offences
Section 65 repealed 26 July 1996 section 19(1) Goods and Services Tax Amendment Act 1996
66: Information may be laid within 10 years
Section 66 repealed 26 July 1996 section 19(1) Goods and Services Tax Amendment Act 1996
67: Penal tax in case of evasion
Section 67 repealed 26 July 1996 section 19(1) Goods and Services Tax Amendment Act 1996
68: Nature of penal tax
Section 68 repealed 26 July 1996 section 19(1) Goods and Services Tax Amendment Act 1996
69: Assessment of penal tax
Section 69 repealed 26 July 1996 section 19(1) Goods and Services Tax Amendment Act 1996
70: Objections to penal tax
Section 70 repealed 26 July 1996 section 19(1) Goods and Services Tax Amendment Act 1996
71: Recovery of penal tax
Section 71 repealed 26 July 1996 section 19(1) Goods and Services Tax Amendment Act 1996
72: Recovery of penal tax from executors or administrators
Section 72 repealed 26 July 1996 section 19(1) Goods and Services Tax Amendment Act 1996
73: Recovery of penal tax not affected by conviction of registered person
Section 73 repealed 26 July 1996 section 19(1) Goods and Services Tax Amendment Act 1996
74: Publication of names of tax evaders
Section 74 repealed 26 July 1996 section 19(1) Goods and Services Tax Amendment Act 1996
11: General provisions
75: Keeping of records
1: For the purposes of this section, the term records taxable supply information, supply correction information
2: Without limiting the generality of subsection (1), the records required to be kept and retained, pursuant to subsection (3), shall contain—
a: a record of all goods and services supplied by or to that registered person showing the goods and services, and the suppliers or their agents, in sufficient detail to enable the goods and services, the suppliers, or the agents to be readily identified by the Commissioner, and all invoices, taxable supply information and supply correction information
b: the charts and codes of account, the accounting instruction manuals, and the system and programme documentation which describes the accounting system used in each taxable period in the supply of goods and services; and
c: any list required to be prepared in accordance with section 19B(3) or section 78B(7)
3: Subject to subsections (4) to (7), every registered person must keep, for a period of at least 7 years after the end of the taxable period to which they relate, the records listed in subsection (2) and records that are sufficient to enable ready ascertainment by the Commissioner or an officer authorised by the Commissioner of the registered person's liability to tax.
3BA: A registered person required by subsection (3) to keep and retain a record must keep and retain the record—
a: in English or te reo Maori
b: at a place in New Zealand, or at a place outside New Zealand where—
i: the Commissioner authorises the registered person under subsection (6) to keep the record or the type of record:
ii: the record is kept by a person authorised by the Commissioner under subsection (6) to keep records for persons that include the registered person.
3B: For the purposes of section 11(1)﻿(mb)
a: the name and address of the recipient; and
b: the registration number of the recipient; and
c: a description of the land
d: the consideration for the supply.
3C: Subsections (3D) and (3E) apply when a supply that wholly or partly consists of land is made to a person who is, for the purposes of the supply, an agent acting on behalf of an undisclosed principal.
3D: The requirements of subsection (3B)﻿(a) and (b) are met if the supplier maintains sufficient records to enable the particulars of the name, and address, and registration number or tax file number, as applicable
3E: The agent must maintain sufficient records in relation to the undisclosed principal to enable the name, address, and, if the principal is a registered person or expects to be a registered person, the registration number
3F: Subsection (3BA) does not apply to require a non-resident supplier whose only supplies are supplies of distantly taxable goods to which section 8(3)﻿(ab)
a: in English or te reo Maori
b: at a place in New Zealand or at a place outside New Zealand authorised by the Commissioner.
4: This section shall not require the retention of any records—
a: in respect of which the Commissioner has given notice
b: of a company which has been liquidated
4B: A registered person is not required to keep a record of the GST registration number of the supplier if the amount of consideration for the supply is $200 or less.
5: The Commissioner may, by notice
a: the affairs of the registered person are or have been under audit or investigation by the Commissioner; or
b: the Commissioner intends to conduct such an audit or investigation before the expiry of the retention period as so extended, or is actively considering any such audit or investigation.
6: The Commissioner may, upon application
a: a registered person to keep and retain a record or a type of record—
i: in a language other than English or te reo Maori
ii: at a place outside New Zealand:
b: a person to hold, for a registered person, records—
i: at places outside New Zealand; and
ii: in a form approved by the Commissioner; and
iii: accessible by the Commissioner in a way approved by the Commissioner.
7: The Commissioner may, for an authorisation under subsection (6) of a person,—
a: impose reasonable conditions on the authorisation:
b: reasonably vary the conditions on the authorisation:
c: withdraw the authorisation, upon request by the person or after giving reasonable notice of the withdrawal:
d: give public notice of an action under subsection (6)﻿(b) or this subsection, in a publication chosen by the Commissioner.
8: A registered person who is required under this section to keep and maintain records that are in a language other than English must comply with the requirements of sections 24 24BA 25 Section 75(1) amended 1 April 2023 section 40(1) section 40(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 75(2)﻿(a) amended 1 April 2023 section 40(2) section 40(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 75(2)﻿(c) amended 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 75(2)﻿(c) amended 28 July 1988 Goods and Services Tax Amendment Act (No 3) 1988 Section 75(3) replaced 17 July 2013 section 144(1) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 75(3BA) inserted 17 July 2013 section 144(2) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 75(3BA)﻿(a) amended 26 June 2019 section 40(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 75(3B) inserted 1 April 2011 section 21(1) Taxation (GST and Remedial Matters) Act 2010 Section 75(3B)﻿(c) amended 29 August 2011 section 243(1) Taxation (Tax Administration and Remedial Matters) Act 2011 Section 75(3C) inserted 29 August 2011 section 243(2) Taxation (Tax Administration and Remedial Matters) Act 2011 Section 75(3D) inserted 29 August 2011 section 243(2) Taxation (Tax Administration and Remedial Matters) Act 2011 Section 75(3D) amended 2 November 2012 section 225(1) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 75(3E) inserted 29 August 2011 section 243(2) Taxation (Tax Administration and Remedial Matters) Act 2011 Section 75(3E) amended 2 November 2012 section 225(2) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 75(3F) inserted 1 October 2016 section 73 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 75(3F) amended 1 December 2019 section 40(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 75(3F)﻿(a) amended 26 June 2019 section 40(3) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 75(4)﻿(a) amended 2 June 2016 section 201(1) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 75(4)﻿(b) amended 14 September 1994 section 9 Goods and Services Tax Amendment Act 1994 Section 75(4B) inserted 1 April 2023 section 40(3) section 40(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 75(5) added 1 April 1992 Goods and Services Tax Amendment Act 1992 Section 75(5) amended 2 June 2016 section 201(2) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 75(6) inserted 17 July 2013 section 144(3) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 75(6) amended 2 June 2016 section 201(3) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 75(6)﻿(a)﻿(i) amended 26 June 2019 section 40(4) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 75(7) inserted 17 July 2013 section 144(3) Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 75(8) inserted 26 June 2019 section 40(5) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
75B: General rules for giving information or communicating matters
1: Sections 14 to 14G
a: asking or requesting:
b: informing:
c: applying:
d: notifying:
e: formally notifying.
2: Section 14E
3: Sections 14F 14G post, or electronic means Section 75B inserted 2 June 2016 section 202 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 75B(3) amended 30 March 2022 section 41(1) section 41(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
76: Avoidance
1: A tax avoidance arrangement entered into by a person is void against the Commissioner for tax purposes.
2: A tax avoidance arrangement is one that directly or indirectly—
a: has tax avoidance as its purpose or effect; or
b: has tax avoidance as one of its purposes or effects, whether or not another purpose or effect relates to ordinary business or family dealings, if the purpose or effect is not merely incidental.
3: If a tax avoidance arrangement is void against the Commissioner, the Commissioner may adjust the amount of tax payable by, or the amount of tax refundable to, a registered person affected by the arrangement, whether or not the registered person is a party to the arrangement, in the manner the Commissioner considers appropriate to counteract any tax advantage obtained by the registered person from or under the arrangement.
4: For the purpose of subsection (3), the Commissioner may, in addition to any other treatment the Commissioner considers appropriate, treat—
a: a person who is not a registered person and who is a party to or has participated in an arrangement as being a registered person:
b: a supply of goods and services, whether or not a taxable supply, that is affected by or is part of an arrangement as being made to or by a registered person:
c: a supply of goods and services as occurring in a taxable period that, but for an arrangement affected by this section, would have occurred in the taxable period in which the supply was made:
d: a supply of goods and services as having been made, or consideration for the supply as having been given, at open market value.
5: Subsection (6) applies if—
a: a person (person A) enters into an arrangement on or after 22 August 1985 whereby a taxable activity formerly carried on by person A is carried on, in whole or in part, by another person (person B) or other persons; and
b: either—
i: person A and person B are associated persons; or
ii: person A and the other persons are associated persons.
6: For the purpose of sections 15(3) 19A(1) 51(1)
7: The Commissioner may, having regard to the circumstances of the case and if the Commissioner considers it equitable to do so, determine that subsection (6) does not apply to person A, person B or the other persons.
8: For the purpose of this section— arrangement tax avoidance
a: a reduction in the liability of a registered person to pay tax:
b: a postponement in the liability of a registered person to pay tax:
c: an increase in the entitlement of a registered person to a refund of tax:
d: an earlier entitlement of a registered person to a refund of tax:
e: a reduction in the total consideration payable by a person for a supply of goods and services. Section 76 substituted 10 October 2000 section 116(1) Taxation (GST and Miscellaneous Provisions) Act 2000
77: New Zealand or foreign currency
1: All amounts of money must, for the purposes of this Act, be expressed in terms of New Zealand currency, and in any case where and to the extent that any such amount is consideration in money for a supply, that amount must be expressed in terms of New Zealand currency as at the time of that supply.
2: Despite subsection (1), a non-resident supplier of distantly taxable goods to which section 8(3)﻿(ab)
3: A non-resident supplier which makes an election under subsection (2) must, in a return, choose to convert foreign currency amounts into New Zealand currency amounts on—
aa: the date of the supply; or
a: the last day of the relevant taxable period; or
b: the earlier of—
i: the date the supplier files their return for the relevant period:
ii: the due date for filing their return for the relevant period; or
c: another date agreed between the supplier and the Commissioner.
4: A non-resident supplier may not revoke an election under subsection (2) or (3) until at least 24 months after making the election, unless the Commissioner agrees otherwise.
5: A supplier of distantly taxable goods who is required to determine under section 10B
a: the spot exchange rate for the foreign currency applying at the time of the supply; or
b: a currency conversion method, and a time for which the method is applied for the supply, that are approved by the Commissioner for the purpose. Section 77 replaced 1 October 2016 section 74 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 77(2) amended 1 December 2019 section 41(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 77(3)﻿(aa) inserted 23 March 2020 section 253 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 77(5) inserted 1 December 2019 section 41(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
78: Effect of imposition or alteration of tax
1: For the purposes of this section the expression alteration in the law
a: a supply of goods and services is charged with, or exempted from, tax; or
b: the rate of tax in relation to a supply of goods and services is increased or reduced.
2: Where an alteration in the law is made and a supplier has, at any time
a: where the alteration in the law renders that supply liable to be charged with tax or increases the amount of any tax charged or chargeable in relation to that supply, the supplier may add to the agreed price in the said agreement or contract the amount of that tax or the increase of that tax; or
b: where the alteration in the law renders that supply exempt from tax or reduces the amount of tax charged or chargeable in relation to that supply, the supplier or the recipient may deduct from the agreed price in the said agreement or contract the amount of that tax or the reduction of that tax: provided that this subsection shall not apply where that contract or agreement is entered into after the expiry of the period of 3 months that commences with the coming into force of the alteration in the law: provided further that this subsection shall not apply to require a public authority to alter any amount agreed to be paid by the authority in respect of any supply of goods and services where the consideration for that supply is in the nature of a grant or subsidy.
3: Where an alteration in the law is made, any fee, charge, or other amount, prescribed by , or determined pursuant to, any legislation
a: where the alteration in the law renders the fee, charge, or other amount prescribed by , or determined pursuant to, that legislation or determined
b: where the alteration in the law renders the fee, charge, or other amount prescribed by , or determined pursuant to, that legislation or determined provided that where any such legislation any such legislation provided further that this subsection shall not apply to any fee, charge, or other amount prescribed or determined which is required by virtue of that legislation
4: Where any alteration in the law takes place so as to operate retrospectively from any date, this section shall also apply retrospectively in the same manner and from the same date, and section 74A(1) or legislation section 74A(2)
5: Where any supply is or becomes charged with tax pursuant to this Act, the amount of any increase in consideration in respect of that supply attributable to the tax charged on that supply shall be recoverable by the supplier from the recipient of the taxable supply.
6: This section does not apply to a supply of services that is treated by section 8(4B) Section 78(2) amended 20 May 2010 section 52 Taxation (Budget Measures) Act 2010 Section 78(2) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 78(2) first proviso substituted 23 March 1989 section 20 Finance Act 1989 Section 78(2) second proviso added 23 March 1989 section 20 Finance Act 1989 Section 78(3) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 78(3) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 78(3) first proviso added 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 78(3) first proviso amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 78(3) second proviso added 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 78(3) second proviso amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 78(3) second proviso amended 21 December 2010 section 22 Taxation (GST and Remedial Matters) Act 2010 Section 78(3)﻿(a) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 78(3)﻿(a) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 78(3)﻿(a) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 78(3)﻿(b) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 78(3)﻿(b) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 78(3)﻿(b) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 78(4) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 78(4) amended 1 March 2017 section 183(b) Senior Courts Act 2016 Section 78(5) substituted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 78(6) added 25 November 2003 section 168 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003
78AA: Exceptions to effect of increase of tax
1: For the purposes of this section,—
a: rate change day section 8
b: original rate section 8
2: Despite section 8(1) section 5(13B)
a: to the extent that the insurer, before the rate change day, accepts the claim to which the recovery relates and—
i: pays the claim:
ii: agrees the recovered amount unconditionally; and
b: if the amount recovered is received by the insurer on or after the rate change day; and
c: if the insurer elects that subsection (3) apply to the recovery by treating the recovery in that way in a return provided to the Commissioner.
3: The deemed supply by the insurer is charged with tax at the original rate.
4: Despite section 8(1)
a: section 9(3)﻿(a)
b: the recipient of the supply makes periodic payments to the registered person during the term of the agreement; and
c: part of the amount payable to the registered person under the agreement is consideration for a supply that is the provision of credit under a credit contract; and
d: if the agreement were to end early, the amount of tax imposed by section 8
e: the term of the agreement—
i: begins before the rate change day; and
ii: ends on or after the rate change day; and
iii: is less than or equal to 5 years; and
f: the registered person elects that subsection (5) apply to supplies made under the agreement by treating each supply in that way in a return provided to the Commissioner; and
g: within 30 days after the rate change day, the registered person gives notice to the recipient of the supplies, if the recipient is a registered person, that payments by the recipient made after the rate change day include goods and services tax charged at the original rate.
5: Each successive supply under the agreement that is deemed to take place on or after
6: Despite section 5(5) subpart 1
a: the agreement is made before the day on which the increase in the rate of tax is announced; and
b: after the rate change day, the goods are delivered to the buyer and the property in the goods is transferred to the buyer; and
c: the registered person elects that subsection (7) apply to supplies made under the agreement by treating each supply in that way in a return provided to the Commissioner.
7: Goods and services tax is charged on the supply of the goods under the agreement (the agreed supply
a: a supply on the day before the rate change day, for which the consideration is the payment for the agreed supply that the registered person receives before the rate change day; and
b: a supply on the day that the agreed supply would have occurred in the absence of this subsection, for which the consideration is the payment for the agreed supply that the registered person receives on or after the rate change day.
8: Subsection (9) applies to a supply of goods or services if—
a: the invoice for the supply is dated before the rate change day; and
b: the invoice is issued—
i: on or before the second Monday after the rate change day; and
ii: consistently with the registered person's practice of issuing invoices for such supplies; and
c: payment for the supply is due on or before the day that is 60 days after the date of the invoice; and
d: the registered person elects that subsection (9) apply to the supply by treating the supply in that way in a return provided to the Commissioner.
9: The supply is treated as being made on the day of the date of the invoice, despite section 9(3)﻿(a)
10: Despite section 9(1)
a: section 9(3)﻿(a)
b: the term of the agreement begins before the rate change day and ends after the rate change day; and
c: under the agreement, the consideration for a supply is set or reviewed for periods of 396 days or less during the term of the agreement; and
d: the registered person elects that subsection (11) apply to supplies made under the agreement during a period in which the day before the rate change day occurs (the rate change period
e: within 30 days after the rate change day, the registered person gives notice to the recipient of the supplies, if the recipient is a registered person, that payments made after the rate change day by the recipient for supplies made in the rate change period include goods and services tax charged at the original rate.
11: If this subsection applies to a supply for a rate change period and, in the absence of this subsection, the supply would be made on or after the rate change day,—
a: the supply is treated as being made on the day before the rate change day; and
b: the registered person is treated as issuing taxable supply information section 24
12: Despite section 25(3) and (3C) section 143A(1)﻿(f) taxable supply information
a: the rate change day occurs after the registered person provides the taxable supply information
b: in the absence of this subsection and subsection (13), the registered person would be required to provide after the rate change day supply correction information
c: the registered person elects that subsection (13) apply to the supply by including on that basis the supply in a return provided to the Commissioner.
13: If, in the absence of this subsection, the registered person would be required to provide supply correction information—
a: for an excess of tax charged in the taxable supply information for a supply,—
i: the registered person may provide replacement taxable supply information for the supply; and
ii: goods and services tax is charged on the supply under the replacement taxable supply information at the original rate:
b: for a deficiency of tax charged in the taxable supply information for a supply, the registered person may provide replacement taxable supply information for the supply.
14: Despite section 5(13)﻿(a)
a: the payment is made before the rate change day; and
b: the registered person receives the payment on or before the second Monday after the rate change day. Section 78AA inserted 7 September 2010 section 193 Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 Section 78AA(5) amended 21 December 2010 section 23(1) Taxation (GST and Remedial Matters) Act 2010 Section 78AA(6) amended 17 June 2014 section 41(2) Fair Trading Amendment Act 2013 Section 78AA(11)﻿(b) amended 1 April 2023 section 42(1) section 42(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 78AA(12) amended 1 April 2023 section 42(2)﻿(a) section 42(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 78AA(12) amended 21 December 2010 section 23(2) Taxation (GST and Remedial Matters) Act 2010 Section 78AA(12)﻿(a) amended 1 April 2023 section 42(2)﻿(b) section 42(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 78AA(12)﻿(b) amended 1 April 2023 section 42(2)﻿(c) section 42(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 78AA(13) replaced 1 April 2023 section 42(3) section 42(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
78A: Returns to be furnished in 2 parts for taxable period in which change in rate of tax occurs
1: Where there is a change in the rate of tax imposed by section 8 (other than a person with a taxable period commencing within 7 days before or after the day immediately preceding that date who furnishes returns in accordance with subsection (5))
a: a Part 1 return, covering the period beginning on the first day of the person's taxable period and ending with the day immediately preceding the date on which the new rate comes into force; and
b: a Part 2 return, covering the period beginning on the date on which the new rate comes into force and ending with the last day of the person's taxable period.
2: Each such part shall be furnished in a form or forms prescribed by the Commissioner, and the 2 parts shall together be deemed to form a single return.
3: If the 2 parts are furnished separately, the Commissioner shall be deemed for the purposes of section 46
4: Every person, whether registered or not, who is required to make a return pursuant to section 16(4)
5: Any registered person who, pursuant to a determination of the Commissioner under section 15E
a: ended with the day immediately preceding the date on which the new rate comes into force; or
b: commenced with the day on which the new tax rate comes into force;— and where a person so notifies the Commissioner, that person shall accordingly furnish returns in respect of those 2 taxable periods as if—
c: the earlier of those periods ended with the day immediately preceding the date on which the new rate of tax comes into force; and
d: the later of those periods commenced on the day on which the new rate of tax comes into force. Section 78A inserted 28 July 1988 Goods and Services Tax Amendment Act (No 3) 1988 Section 78A(1) amended 23 March 1989 section 21(1) Finance Act 1989 Section 78A(4) amended 31 March 2007 section 297(1)﻿(a) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 78A(5) added 23 March 1989 section 21(2) Finance Act 1989 Section 78A(5) amended 2 June 2016 section 203 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 78A(5) amended 1 April 2008 section 297(1)﻿(b) Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006
78B: Adjustments to tax payable for persons furnishing returns
1: Where there is a change in the rate of tax imposed by section 8
a: any payments that are made or received by a registered person on or after the date on which the new rate comes into force, to the extent that—
i: any such payment is made or received in respect of any qualifying supply referred to in subsection (2A)﻿(a) by a registered person who, as at that date, is required to account for tax payable on a payments basis; or
ii: any such payment is made in respect of any qualifying supply of secondhand goods referred to in subsection (2A)﻿(b) by a registered person who, as at that date, is required to account for tax payable on an invoice basis; or
ii: any such payment is made in respect of any qualifying supply referred to in subsection (2A)﻿(aa) by a registered person who, as at that date, is required to account for tax payable on a hybrid basis,— shall be deemed, notwithstanding any other provision of this Act, to be consideration for a supply made or received by that registered person on or after the date on which the new rate of tax comes into force, and the amount of any input tax or output tax in respect of any such supply shall accordingly be determined on the basis of the new rate of tax; but
b: the amount of tax payable under section 20
2: Where subsection (1)﻿(b) requires an adjustment to be made of the amount of tax payable by a registered person,—
a: the calculation of the adjustment shall be recorded in a form prescribed by the Commissioner; and
b:
2A: For the purposes of this section, the term qualifying supply
a: in relation to a person who, as at the date on which the new rate of tax comes into force, is required to account for tax payable on a payments basis,—
i: any taxable supply made by the registered person; or
ii: any taxable supply made to the registered person; or
iii: any supply made to the registered person that is a supply of secondhand goods to which section 3A(1)﻿(c)
iv: any supply made by the registered person that is a specified supply within the meaning of section 86
aa: in relation to a person who, as at the date on which the new rate of tax comes into force, is required to account for tax payable on a hybrid basis,—
ia: any supply that is made by the registered person as a private training establishment granted registration by the Qualifications Authority under section 387
i: any taxable supply made to the registered person; or
ii: any supply made to the registered person that is a supply of secondhand goods to which section 3A(1)﻿(c)
b: in relation to a person who, as at the date on which the new rate of tax comes into force, is required to account for tax payable on an invoice basis,—
i: any supply made by the registered person as a private training establishment granted registration by the Qualifications Authority under section 387
ii: any supply made to the registered person that is a supply of secondhand goods to which section 3A(1)﻿(c) to the extent that—
c: as at the commencement of the day on which the new rate of tax comes into force, the consideration for the supply—
i: remains unpaid; and
ii: has not been written off by the registered person as a bad debt; and
d: the supply is not required to be taken into account (otherwise than pursuant to this section) in calculating the tax payable by the registered person in respect of—
i: that part of the taxable period in which the new rate of tax comes into force that is required by section 78A
ii: any other taxable period ending before the new rate of tax comes into force; and
e: the supply is not charged with tax at—
i: the rate of 0%; or
ii: a rate that is unaffected by the change to section 8
f: the supply, in the case of a supply made to the registered person, is a supply in respect of which—
i: taxable supply information or supply correction information has been provided in accordance with sections 19K to 19N
ii: section 19K(7) section 19N
iii: the registered person meets record-keeping requirements of section 19H
2B: For the purposes of this section, a taxable supply made by a registered person on or after the date on which the new rate of tax comes into force is treated as being made before that date if—
a: the registered person makes the supply as a private training establishment granted registration by the Qualifications Authority under section 387
b: the consideration for the supply is held in trust on the day before that date; and
c: the registered person includes such supplies in the form referred to in subsection (2).
3: The adjustment required by this section shall be calculated as follows:
a: first determine the amount of consideration payable by the registered person on qualifying supplies made to the registered person:
b: subtract the amount of the consideration payable to the registered person on qualifying supplies made by the registered person:
c: multiply the resulting total by an amount equal to the old tax fraction subtracted from the new tax fraction (as respectively calculated in accordance with section 2
4: Where the amount of any adjustment calculated in accordance with this section is a positive amount, that amount shall, in relation to the registered person, be deemed to be output tax attributable to the taxable period for,––
a: the person's Part 1 return furnished under section 78A
b: the return for the taxable period ending with the day preceding the date on which the new rate of tax comes into force, if the person is not required to furnish a Part 1 return.
5: Where the amount so calculated is a negative amount, that amount shall be a credit to the registered person, and—
a: shall be set off against any amount of tax payable by the registered person in respect of any taxable period ending before the day on which the new rate of tax comes into force; and
b: to the extent that it cannot be so set off, shall be set off against any amount of tax payable by the registered person in respect of the taxable period in which the new rate comes into force; and
c: to the extent that it cannot be so set off, refunded to the person, subject to section 46(6)
6: Subject to subsections (6A) and (6B),
a: the registered person shall make an adjustment of an amount equal to the amount written off as a bad debt, multiplied by an amount equal to the old tax fraction subtracted from the new tax fraction (as referred to in subsection (3)﻿(c)); and
b: the amount of that adjustment shall, in the taxable period in which the amount is written off, be deemed to be—
i: output tax where the amount of the adjustment is a positive amount; and
ii: input tax where the amount of the adjustment is a negative amount.
6A: Where—
a: at any time after the new rate of tax comes into force, a registered person has been directed by the Commissioner pursuant to section 19 or section 19A or a hybrid basis
b: that registered person subsequently writes off as a bad debt any amount that would have been consideration for a qualifying supply if that registered person had in fact been on the payments basis of accounting as at the date on which the new rate of tax came into force,— that registered person shall, for the purposes of subsection (6), be deemed, in respect of such amounts written off as a bad debt, to have made an adjustment pursuant to subsection (1).
6B: Where—
a: at any time after the new rate of tax comes into force, any registered person has been directed by the Commissioner pursuant to section 19 or section 19A or a hybrid basis
b: that registered person subsequently writes off as a bad debt any amount that was consideration for a qualifying supply,— that registered person shall, for the purposes of subsection (6), be deemed, in respect of such amounts written off as a bad debt, to have not made an adjustment pursuant to subsection (1).
7: For the purposes of this section, a registered person shall, in respect of all qualifying supplies made by or to that person, prepare—
a: a list of debtors of the registered person showing the amounts due to that person as at the commencement of the day on which the new rate of tax comes into force; and
b: a list of creditors of the registered person showing the amounts due by that person as at the commencement of that day. Section 78B inserted 28 July 1988 Goods and Services Tax Amendment Act (No 3) 1988 Section 78B heading amended 7 September 2010 section 194(1) Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 Section 78B(1) substituted 23 March 1989 section 22(1) Finance Act 1989 Section 78B(1)﻿(a)﻿(ii) amended 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 78B(1)﻿(a) second subparagraph (ii) added 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 78B(2) substituted 23 March 1989 section 22(1) Finance Act 1989 Section 78B(2)﻿(b) repealed 20 May 2010 section 53(1) Taxation (Budget Measures) Act 2010 Section 78B(2A) inserted 23 March 1989 section 22(1) Finance Act 1989 Section 78B(2A)﻿(a)﻿(iii) amended 10 October 2000 section 117(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 78B(2A)﻿(aa) inserted 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 78B(2A)﻿(aa)﻿(ia) inserted 7 September 2010 section 194(2) Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 Section 78B(2A)﻿(aa)﻿(ia) amended 1 August 2020 section 668 Education and Training Act 2020 Section 78B(2A)﻿(aa)﻿(ii) amended 10 October 2000 section 117(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 78B(2A)﻿(b) substituted 7 September 2010 section 194(3) Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 Section 78B(2A)﻿(b)﻿(i) amended 1 August 2020 section 668 Education and Training Act 2020 Section 78B(2A)﻿(e) substituted 7 September 2010 section 194(4) Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 Section 78B(2A)﻿(f)﻿(i) replaced 1 April 2023 section 43(1) section 43(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 78B(2A)﻿(f)﻿(ii) replaced 1 April 2023 section 43(1) section 43(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 78B(2A)﻿(f)﻿(iii) replaced 1 April 2023 section 43(1) section 43(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 78B(2B) inserted 7 September 2010 section 194(5) Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 Section 78B(2B)﻿(a) amended 1 August 2020 section 668 Education and Training Act 2020 Section 78B(4) amended 20 May 2010 section 53(2) Taxation (Budget Measures) Act 2010 Section 78B(4)﻿(a) added 20 May 2010 section 53(2) Taxation (Budget Measures) Act 2010 Section 78B(4)﻿(b) added 20 May 2010 section 53(2) Taxation (Budget Measures) Act 2010 Section 78B(5) amended 20 May 2010 section 53(3) Taxation (Budget Measures) Act 2010 Section 78B(5)﻿(c) substituted 20 May 2010 section 53(3) Taxation (Budget Measures) Act 2010 Section 78B(6) amended 19 December 1989 Goods and Services Tax Amendment Act (No 2) 1989 Section 78B(6A) inserted 19 December 1989 Goods and Services Tax Amendment Act (No 2) 1989 Section 78B(6A)﻿(a) amended 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 78B(6A)﻿(a) amended 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 78B(6B) inserted 19 December 1989 Goods and Services Tax Amendment Act (No 2) 1989 Section 78B(6B)﻿(a) amended 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 78B(6B)﻿(a) amended 1 April 1991 Goods and Services Tax Amendment Act 1991
78BA: Adjustments to tax payable in relation to
supply correction information
1: Subject to subsection (6) of section 78B
a: there is a change in the rate of tax imposed by section 8
b: any registered person (being a supplier) has made an adjustment pursuant to section 78B
c: that registered person subsequently issues supply correction information section 25 the supply correction information that registered person shall, in the taxable period in which the supply correction information section 20
2: Where—
a: there is a change in the rate of tax imposed by section 8
b: any registered person (being a recipient) has made an adjustment pursuant to section 78B
c: that registered person has subsequently, in respect of any qualifying supply,—
i: been issued with supply correction information
ii: received taxable supply information for which payment has not been made as at the time of the receipt of the supply correction information that registered person shall, in the taxable period in which the supply correction information or other information section 20
3: The adjustment required by this section shall be calculated as follows:
a: subtract from the amount of consideration originally payable to, or, as the case may be, by that registered person the amount of consideration that is now payable to, or, as the case may be, by that registered person:
b: multiply the resulting total by an amount equal to the old tax fraction subtracted from the new tax fraction (as respectively calculated in accordance with section 2
4: For the purposes of subsection (1), the amount of the adjustment pursuant to this section shall be deemed to be—
a: output tax where the amount of the adjustment is a positive amount; and
b: input tax where the amount of the adjustment is a negative amount.
5: For the purposes of subsection (2), the amount of the adjustment pursuant to this section shall be deemed to be—
a: output tax where the amount of the adjustment is a negative amount; and
b: input tax where the amount of the adjustment is a positive amount. Section 78BA inserted 19 December 1989 Goods and Services Tax Amendment Act (No 2) 1989 Section 78BA heading amended 1 April 2023 section 44(1) section 44(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 78BA(1) amended 1 April 2023 section 44(2)﻿(c) section 44(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 78BA(1)﻿(c) amended 1 April 2023 section 44(2)﻿(a) section 44(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 78BA(1)﻿(c) amended 1 April 2023 section 44(2)﻿(b) section 44(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 78BA(2) amended 1 April 2023 section 44(3)﻿(d) section 44(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 78BA(2)﻿(c) amended 1 April 2023 section 44(3)﻿(c) section 44(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 78BA(2)﻿(c)﻿(i) amended 1 April 2023 section 44(3)﻿(a) section 44(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 78BA(2)﻿(c)﻿(ii) amended 1 April 2023 section 44(3)﻿(b) section 44(4) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 78BA(2)﻿(c)﻿(ii) amended 2 June 2016 section 204 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016
78C: Change in accounting basis coinciding with or occurring after change in rate of tax
1: Where—
a: there is a change in the rate of tax imposed by section 8
b: a registered person is required pursuant to section 78A
c: the Commissioner has during that taxable period, at any time before the date on which the new rate of tax comes into force, pursuant to section 19 section 19A
i: from an invoice basis to a payments or a hybrid basis; or
ii: from a payments basis to an invoice or a hybrid basis; or
iii: from a hybrid basis to an invoice or a payments basis— the provisions of sections 19 to 19C section 19B(2)
2: Where the Commissioner directs a change in accounting basis for any registered person pursuant to section 19 or section 19A
a: for the purpose of determining under section 19C
i: the amount of any such input tax in respect of any taxable supply, or any supply of secondhand goods to which section 3A(1)﻿(c) section 2
ii: the amount of any such output tax in respect of any taxable supply shall be deemed to be an amount equal to that new tax fraction of the consideration in money for the supply,— notwithstanding that the supply may have occurred during any taxable period or part of a taxable period occurring before the date on which the new rate came into force; and
b: for the purpose of determining the amount of any such input or output tax deducted or accounted for, or that would have been deducted or accounted for, no account shall be taken of the amount of any adjustment under section 78B ; and
c: any payments that are made or received by that registered person after that change in accounting basis shall be deemed, notwithstanding any other provision of this Act, to be consideration for a supply made or received by that registered person on or after the date on which the new rate of tax comes into force, and the amount of any input tax or output tax in respect of any such supply shall accordingly be determined on the basis of the new rate of tax. Section 78C inserted 23 March 1989 section 23 Finance Act 1989 Section 78C(1) amended 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 78C(1)﻿(c) substituted 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 78C(2) amended 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 78C(2)﻿(a) amended 1 April 1991 Goods and Services Tax Amendment Act 1991 Section 78C(2)﻿(a)﻿(i) amended 10 October 2000 section 118(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 78C(2)﻿(b) amended 19 December 1989 Goods and Services Tax Amendment Act (No 2) 1989 Section 78C(2)﻿(c) added 19 December 1989 Goods and Services Tax Amendment Act (No 2) 1989
78D: Liability to pay past tax, etc, not affected by alteration in the law
Except as otherwise expressly provided in any enactment, the repeal or amendment of any provision of this Act shall not affect any liability or right of any person or of the Crown that existed under that provision immediately before its repeal or amendment, and in particular,—
a: any liability to tax, or to any fine or penalty, of any person pursuant to the repealed or amended provision, and the right of the Crown to any revenue, tax, fee, fine, or penalty pursuant to the repealed or amended provision, shall not be affected by the repeal or amendment; and
b: all acts and proceedings for the assessment or recovery of any revenue, tax, fine, or penalty assessed or assessable or paid or payable pursuant to the repealed or amended provision, and all proceedings in respect of offences committed or alleged to be committed in respect of the repealed or amended provision, may be instituted or continued as if the provision had not been repealed or amended. Section 78D inserted 23 March 1989 section 23 Finance Act 1989
78E: Alteration of agreed price in relation to supply mistakenly believed to be of a going concern
Where—
a: a supplier and a recipient agreed, having recorded their agreement in a document, that section 11(1)﻿(m)
b: the contract or agreement for the supply contains no provision for an increase to the agreed price arising in the event that the supply is not a supply that comes within the provisions of section 11(1)﻿(m)
c: the supply does not come within the provisions of section 11(1)﻿(m) the supplier may increase the consideration for the supply by an amount equal to the agreed price in the contract or agreement multiplied by a percentage equal to the percentage specified in section 8(1) Section 78E substituted 12 December 1995 section 6(1) Goods and Services Tax Amendment Act (No 2) 1995 Section 78E(a) amended 2 June 2016 section 205 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 78E(a) amended 10 October 2000 section 119(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 78E(b) amended 10 October 2000 section 119(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 78E(c) amended 10 October 2000 section 119(1) Taxation (GST and Miscellaneous Provisions) Act 2000
78F: Liability in relation to supplies of land
1: This section applies in relation to a supply that wholly or partly consists of land.
2: At or before settlement of the transaction relating to the supply, the recipient is required to notify
a: they are, or expect to be, a registered person; and
b: they are acquiring the goods with the intention of using them for making taxable supplies; and
c: they do not intend to use the land as a principal place of residence for them or a person associated with them under section 2A(1)﻿(c)
2B: For the purposes of subsection (2)﻿(a), a recipient who is a registered person, or who expects to be a registered person, must provide their registration number to the supplier at or before the date of settlement.
3: The supplier may rely on the information provided as required by subsection (2)
4: For the purposes of section 5(2) notice
5: For the purposes of section 60B person B person C
a: person B provides the required information as it relates to their expectation of the circumstances of person C:
b: person C provides the required information.
6: When a supply is made to a person who is, for the purposes of the supply, an agent acting on behalf of an undisclosed principal, the requirements of subsection (2) are met if the agent notifies
a: is, or expects to be, a registered person; and
b: is acquiring the goods or services with the intention of using them for making taxable supplies; and
c: does not intend to use the land as a principal place of residence for them or a person associated with them under section 2A(1)﻿(c)
7: When a supply is made to a person who is, for the purposes of the supply, an agent acting on behalf of an undisclosed principal, the agent must provide their registration number to the supplier at or before the date of settlement. If the agent does not have a registration number, their tax file number may be provided in its place. On meeting the requirements of this subsection, the person is treated as having met the requirements of subsection (2B). Section 78F inserted 1 April 2011 section 24(1) Taxation (GST and Remedial Matters) Act 2010 Section 78F(2) amended 2 June 2016 section 206(1) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 78F(2B) inserted 29 August 2011 section 244(1) Taxation (Tax Administration and Remedial Matters) Act 2011 Section 78F(3) amended 2 November 2012 section 226(1) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 78F(4) amended 2 June 2016 section 206(2) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 78F(5) replaced 2 November 2012 section 226(2) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 78F(6) added 29 August 2011 section 244(2) Taxation (Tax Administration and Remedial Matters) Act 2011 Section 78F(6) amended 2 June 2016 section 206(3) Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 78F(7) added 29 August 2011 section 244(2) Taxation (Tax Administration and Remedial Matters) Act 2011 Section 78F(7) amended 2 November 2012 section 226(3) Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012
78G: Railways vesting: zero-rating and timing of tax calculations and documents
Section 78G repealed 30 March 2022 section 45(1) section 45(2) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
78H: Land in Waitara vested in Te Kōwhatu Tū Moana to be zero-rated
1: On the day on which land in Waitara vests in Te Kōwhatu Tū Moana under subpart 2
2: In this section, Te Kōwhatu Tū Moana section 4 Section 78H inserted 17 March 2019 section 66(2) New Plymouth District Council (Waitara Lands) Act 2018
78I: Support package payment made by water services entity to be zero-rated
1: A support package payment made by a water services entity is, when and after it is made, treated as being consideration for a taxable supply that is charged with tax at the rate of 0%.
2: In this section, support package payment made by a water services entity clause 36
a: made by a water services entity to a local authority (within the meaning of the Local Government Act 2002
b: made under the Three Waters Reforms Programme—Support package (announced in July 2021); and
c: made under that package’s better off no worse off
d: arising from a funding proposal made or finalised before, on, or after the commencement of this section. Section 78I inserted 15 December 2022 section 218 Water Services Entities Act 2022
79: Disclosure of information
1: No obligation as to secrecy or other restriction upon the disclosure of information imposed by any enactment or otherwise shall prevent either—
a: the Commissioner of Inland Revenue or any officer authorised in that behalf; and
b: the chief executive of the New Zealand Customs Service from disclosing to each other information obtained for revenue-gathering purposes and which is required to be disclosed by the persons authorised by this subsection for the same purpose to give effect to the provisions of this Act.
2: Information obtained pursuant to subsection (1) shall not be disclosed except—
a: to the persons authorised under that subsection; or
b: for the purpose of any proceedings connected with a matter in relation to which those persons so authorised perform their duties. Section 79(1)﻿(b) amended 1 October 1996 section 289(1) Customs and Excise Act 1996
80: Power to extend time for doing anything under Act
Section 80 repealed 21 December 2004 section 160 Taxation (Venture Capital and Miscellaneous Provisions) Act 2004
81: Regulations
Section 81 repealed 21 December 2004 section 161 Taxation (Venture Capital and Miscellaneous Provisions) Act 2004
81B: Limitation on amending assessments for legislative charges
Despite section 25 sections 113 113A section 5(6EC) to (6EE) Section 81B inserted 31 March 2023 section 156 Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023
12: Transitional provisions
82: Registration of persons liable to be registered on 1 October 1986
Section 82 repealed 10 October 2000 section 120(1) Taxation (GST and Miscellaneous Provisions) Act 2000
83: Deduction for sales tax
Section 83 repealed 10 October 2000 section 121(1) Taxation (GST and Miscellaneous Provisions) Act 2000
84: Supplies prior to 1 October 1986
1: For the purposes of this Part, the expression time of performance
a: in relation to a supply of goods,—
i: where the goods are to be removed, the time of the removal:
ia: where the goods are to be removed and where the property in those goods will pass from the supplier to the recipient, the earlier of the time of the removal and the time that that property passes:
ii: where the goods are not to be removed, the time when they are made available to the recipient:
iii: where the goods (being sent or taken on approval, sale or return, or similar terms) are removed before it is known whether a supply will take place, the time when it becomes certain that the supply has taken place; or
b: in relation to a supply of services, the time when the services are performed.
1A: Where any registered person supplies or agrees to supply services by virtue of or pursuant to any contract, agreement, or enactment, (whether conditionally or unconditionally, on the happening of any event or any contingency, or otherwise), and that contract, agreement, or enactment expressly or impliedly provides that for, or in respect of, any period or periods, that—
a: any right is to be granted or exercisable, or any thing is to be done, or omitted to be done; or
b: any payment is due, or may be made; or
c: the contract or agreement is in force, or enforceable, or will have effect,— those services shall for the purposes of subsection (1)﻿(b) be deemed to be performed by that registered person continuously and uniformly during the whole of that period or those periods.
1B: Where any services are supplied pursuant to any contract, agreement, or enactment which provides that any right is to be granted or exercisable by an individual for a period which will end with the termination of the life of that individual, and where that contract, agreement, or enactment provides for a single non-refundable payment as consideration for the granting or exercising of that right, those services shall, for the purposes of subsection (1)﻿(b), be deemed to have been performed at the earlier of the time that that right is granted by the supplier or first becomes exercisable.
2: Notwithstanding anything in this Act, for the purposes of subsection (1), goods supplied under an agreement to hire as defined in section 9(3)﻿(c)
3: Subject to subsection (4) and section 9 sections 21 to 21H
a: is before 1 October 1986, and that supply would, but for this section, be deemed by section 9 sections 21 to 21H
b: is on or after 1 October 1986, and that supply would, but for this section, be deemed by section 9 sections 21 to 21H
i: that time of performance shall, for the purposes of section 8
ii: the time when the supply of those goods and services is made shall, for the purposes of section 20
iii: for the purposes of sections 20(3)﻿(b)﻿(i)
4: Notwithstanding anything in subsection (3), where and to the extent that any supply of goods is the construction, major reconstruction, manufacture, or extension of a building or a civil engineering work by the supplier, and the goods,—
a: are sold pursuant to any written contract entered into before 1 October 1986; and
b: are made available to the recipient on or after 1 October 1986,— the value of all work and materials permanently incorporated in or affixed on the site of the building or civil engineering work pursuant to that contract shall be determined as at the close of 30 September 1986, and—
c: to the extent that the aggregate of the consideration in money for all supplies in respect of the sale of those goods which, pursuant to section 9(1) section 8(1)
d: to the extent that that value exceeds the aggregate of the consideration in money for all supplies in respect of the sale of those goods which, pursuant to section 9(1) provided that any part of the amount of that excess remaining, in any case where that consideration is reduced to nil as a result of the application of this paragraph, shall be carried forward and the consideration for any subsequent such supply shall be deemed to be reduced to that extent, and so on: provided that this subsection shall only apply to the extent that that value has been determined on or before 1 December 1986 in a manner acceptable to the Commissioner by a competent independent valuer , or by any other competent valuer that the Commissioner may, in the Commissioner's discretion, approve provided further that where any such supply is made to a registered person, exclusively for the purposes of making taxable supplies, the first proviso to this subsection shall not apply. Section 84(1)﻿(a)﻿(ia) inserted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 84(1A) inserted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 84(1B) inserted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 84(3) amended 10 October 2000 section 122(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 84(3) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 84(3)﻿(a) amended 10 October 2000 section 122(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 84(3)﻿(b) amended 10 October 2000 section 122(1) Taxation (GST and Miscellaneous Provisions) Act 2000 Section 84(3)﻿(b)﻿(iii) substituted 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 84(4) amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 84(4) first proviso amended 8 August 1986 Goods and Services Tax Amendment Act 1986
84B: Supplies of services made before insertion of section 8(4B)
1: This section applies to a supply of services that is treated by section 8(4B)
a: the supply has a time of performance under section 84(1) to (1B) section 146(2)
i: the supply would, but for this section, be treated by section 9 sections 21 to 21H
ii: the value of the supply is ascertainable; or
b: the supply has a time of performance under section 84(1) to (1B) section 146(2) section 9 sections 21 to 21H
2: A supply of services that satisfies subsection (1)﻿(a) is made at the time the services are performed
3: A supply of services that satisfies subsection (1)﻿(b) is made at
a: the time the services are performed section 8
b: the date on which section 146(2) section 20
4: A payment that is in respect of a supply that satisfies subsection (1)﻿(b), and is made or received by a person before the date on which section 146(2) section 20(3)﻿(b)﻿(i) Section 84B inserted 25 November 2003 section 169 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 84B(2) amended 21 December 2004 section 162(1) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 Section 84B(3) amended 21 December 2004 section 162(2) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 Section 84B(3)﻿(a) amended 21 December 2004 section 162(3) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004
85: Certain contracts entered into on or before 20 August 1985
1: For the purposes of this section,— non-reviewable contract , or any agreement entered into pursuant to an enactment,
a: those goods and services are specifically identified in the contract or, as the case may be, agreement
b: the consideration in money for that supply is specified in the contract or, as the case may be, agreement
c: the contract or, as the case may be, agreement ; but does not include any contract that provides for or otherwise contemplates a general review of the consideration in money for that supply review reviewable contract
2: For the purposes of this Act, where any supply is made pursuant to any non-reviewable contract entered into on or before 20 August 1985, and that supply would, but for this section, be charged with tax under section 8
3: For the purposes of this Act, where any supply is made pursuant to any reviewable contract entered into on or before 20 August 1985, and that supply would, but for this section, be charged with tax under section 8 provided that the time when that supply is made shall be determined solely by reference to the time of performance of that supply. Section 85(1) non-reviewable contract amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 85(1) non-reviewable contract amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 85(1) non-reviewable contract amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 85(1) non-reviewable contract amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 85(1) non-reviewable contract amended 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 85(1) reviewable contract substituted 8 August 1986 Goods and Services Tax Amendment Act 1986
85B: Certain contracts entered into before 1 October 2016
1: This section applies to a supply of remote services when—
a: the contract under which the supply is made is for a fixed term that starts before 1 October 2016 and ends after that date; and
b: the contract provides for periodic payments that are treated under section 9(3)﻿(a)
c: under the contract, the consideration for the supply is set or reviewed for periods of 396 days or less during the term of the contract; and
d: section 8(3)﻿(c)
2: Despite section 9(3)﻿(a)
3: The period starts on 1 October 2016 and ends on the earlier of—
a: the date on which the term of the contract ends; and
b: the date that is 396 days after the date on which the contract was entered into. Section 85B inserted 1 October 2016 section 75 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
85C: Certain contracts entered into before 1 December 2019
1: This section applies to a supply of distantly taxable goods when—
a: the contract under which the supply is made is for a fixed term that starts before 1 December 2019 and ends after that date; and
b: the contract provides for periodic payments that are treated under section 9(3)﻿(a) or (aa)
c: under the contract, the consideration for the supply is set or reviewed for periods of 396 days or less during the term of the contract; and
d: section 8(3)﻿(ab)
2: Despite section 9(3)﻿(a) or (aa)
3: The period starts on 1 December 2019 and ends on the earlier of—
a: the date on which the term of the contract ends:
b: the date that is 396 days after the date of the contract. Section 85C inserted 1 December 2019 section 42 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 85C(1)﻿(b) amended 23 March 2020 section 254(1) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 85C(2) amended 23 March 2020 section 254(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
85D: Transitional provision for certain supplies of listed services
1: This section applies for the purposes of this Act in relation to a supply of listed services provided through an electronic marketplace when—
a: an underlying supplier who meets the criteria set out in section 60C(2BB)
b: an underlying supplier who meets the criteria set out in section 60C(2BF)
2: Despite the commencement provisions in the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 amendment Act section 60C(2BB) to (2BE) Section 85D inserted 1 April 2023 section 157 Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023
86: Alternative method of accounting for transitional supplies
1: For the purposes of this Act, where any registered person who is required to account for tax payable on a payments basis pursuant to section 19
2: For the purposes of this Act, in respect of any specified supply, where the Commissioner has made a determination in accordance with subsection (1),—
a: the supplier shall be deemed to be required to account for tax payable on an invoice basis pursuant to section 19 section 84
b: where any amount of the consideration in money for that supply (not being a supply to which paragraph (c) applies) remains unpaid as at the end of 30 September 1986 (not being an amount written off as a bad debt as at that date), the supplier shall set off against any amount of tax payable by that supplier in respect of the taxable period in which 1 October 1986 occurs, an amount equal to the tax fraction of the amount of such consideration remaining unpaid, and to the extent that it cannot be so set off, that amount shall be carried forward to the next taxable period and set off against any amount of tax payable by that supplier in respect of that next taxable period, and so on:
c: where any supply to which section 84 section 8(1)
d: any payment received on or after 1 October 1986 in respect of any specified supply to which paragraph (b) or paragraph (c) applies shall, notwithstanding anything in this Act, be deemed to be consideration in money for a taxable supply made by that supplier and charged with tax pursuant to section 8(1)
e: where and to the extent that any amount remaining unpaid to which paragraph (b) or paragraph (c) applies is written off as a bad debt on or after 1 October 1986, that amount written off shall, notwithstanding anything in this Act, be deemed to be consideration for a taxable supply made by that supplier and charged with tax pursuant to section 8(1) Section 86 added 8 August 1986 Goods and Services Tax Amendment Act 1986 Section 86(1) amended 2 June 2016 section 207 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016
87: Change of accounting basis: transitional provision for certain local authorities
1: This section applies to a local authority referred to in the Goods and Services Tax (Local Authorities Accounting on Payments Basis) Order 2009
2: From 1 July 2013, the local authority must account for tax payable on an invoice basis.
3: On the change of accounting basis, the local authority may spread the tax payable under section 19C(1)
4: If a local authority changes their accounting basis before 1 July 2013, the amount of the tax payable must be calculated on the day before the date on which the change is to take effect, although the amount remains available to be paid as described in subsection (3).
5: No late payment penalty, shortfall penalty, or interest under Part 7 Section 87 inserted 17 July 2013 section 146 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013
88: Valuation: non-profit body making certain supplies, deregistering, or acquiring certain assets of non-profit body
1: Subsection (2) applies to a registered person who—
a: is a non-profit body resident in New Zealand; and
b: makes in a taxable period a supply in the course or furtherance of an activity that is not a taxable activity; and
c: before 15 May 2018, makes a return for the taxable period.
2: The registered person may not, on or after 15 May 2018, take a tax position relating to the supply that differs from the tax position taken in the return for the taxable period.
3: A person may make an election under subsection (4) if—
a: the person is deregistered and deemed under section 5(3) supply date
b: immediately before the supply date, the person uses the goods and services in the course or furtherance of an activity that is not a taxable activity and section 20(3K)
4: The registered person may elect under this subsection that the consideration in money for each supply under section 5(3)
a: each amount, which may be estimated using a method acceptable to the Commissioner if adequate records are not available, that affects under section 20(3K)
b: each amount arising from the asset, which may be estimated using a method acceptable to the Commissioner if adequate records are not available, that affects under section 20(3K)
5: A registered person makes an election under subsection (4) by notifying the Commissioner in a way acceptable to the Commissioner—
a: of the election, and the information required by the Commissioner relating to the election; and
b: when the registered person provides the return for the taxable period that includes the supply date.
6: Subsection (7) applies to the amount of input tax for a registered person (the recipient
a: the supply is of an asset formerly held by a non-profit body (the original owner
b: the recipient is—
i: associated with the original owner:
ii: a non-profit body:
iii: associated with a non-profit body; and
c: an election under subsection (4) or section 20(3KB)
d: the supply of the asset to the recipient occurs less than 5 years after the supply of the asset by the original owner.
7: Despite section 3A(2) and (3)
8: A person who is referred to in subsection (6) as the original owner for an asset, or who is an associate of the original owner and has access to the requested information, must provide details of the output tax for the original owner on the supply of the asset if requested by a person who is referred to in subsection (6) as the recipient of the asset. Section 88 inserted 18 March 2019 section 306 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
89: COVID-19-related payments made before commencement of Goods and Services Tax (Grants and Subsidies) Amendment Order 2020
A payment of the kind specified in clause 10 or 11 of the Schedule section 5(6D) Section 89 inserted 25 March 2020 section 35 COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act 2020
90: Transitional regulation-making power: legislative charges
1: For the purposes of section 5(6ED)﻿(a) schedule
2: Before making a recommendation referred to in subsection (1), the Minister must be satisfied that the charge should be non-taxable, having regard to whether making the charge non-taxable is consistent with the approach taken for other charges with similar characteristics.
3: An order under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 90 inserted 1 April 2023 section 158(1) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023
91: Certain private goods removed from tax base before 1 April 2025
1: This section applies when—
a: a registered person has previously claimed a deduction under section 20(3)
b: the goods were acquired before 1 April 2023; and
c: the goods were not acquired for the principal purpose of making taxable supplies; and
d: the goods were not used for the principal purpose of making taxable supplies.
2: The person may elect to return output tax equal to the amount set out in subsection (3) by notifying the Commissioner before 1 April 2025, in a way acceptable to the Commissioner, of—
a: the election; and
b: the election date; and
c: the information required by the Commissioner relating to the election.
3: If a person makes an election under subsection (2), they must return output tax equal to—
a: the input tax previously deducted for the supply minus the amount of output tax adjustments already made for non-taxable use; or
b: if the supply was acquired by them as a zero-rated supply, the nominal GST component chargeable under section 20(3J)﻿(a)﻿(i)
4: If after returning output tax under subsection (3), the person has claimed no deduction under section 20(3) Section 91 inserted 1 April 2023 section 159 Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023