Goods and Services Tax Act 1985

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Reprint as at 1 April 2010

Goods and Services Tax Act 1985

Public Act1985 No 141
Date of assent3 December 1985

Note

Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this eprint.

A general outline of these changes is set out in the notes at the end of this eprint, together with other explanatory material about this eprint.

This Act is administered in the Inland Revenue Department.


Contents

Title

1 Short Title, etc

Part 1
Interpretation

2 Interpretation

2A Meaning of associated persons

3 Meaning of term financial services

3A Meaning of input tax

4 Meaning of term open market value

5 Meaning of term supply

5B Supply of certain imported services

6 Meaning of term taxable activity

7 Act to bind Crown

Part 2
Imposition of tax

8 Imposition of goods and services tax on supply

8A Certain supplies of telecommunications services

9 Time of supply

10 Value of supply of goods and services

11 Zero-rating of goods

11A Zero-rating of services

11AB Zero-rating of telecommunications services

11B Zero-rating of some supplies by territorial authorities, some supplies involving contributions to local authorities

11C Treatment of supplies by operators of loyalty programmes

12 Imposition of goods and services tax on imports

13 Imposition of goods and services tax on goods liable to excise duty and supplied at in bond prices [Repealed]

14 Exempt supplies

Part 3
Returns and payment of tax

15 Taxable periods

15A Change in registered person's taxable period [Repealed]

15AB Transitional provision: alignment of taxable periods with balance dates [Repealed]

15B Taxable periods aligned with balance dates

15C Changes in taxable periods

15D When change in taxable period takes effect

15E Meaning of end of taxable period

16 Taxable period returns

17 Special returns

18 Other returns

19 Accounting basis

19A Requirements for accounting on payments basis

19AB Local authorities accounting on payments basis on and after 1 July 2001

19B Particulars to be furnished and prepared where change in accounting basis

19C Tax payable, or refund, where change in accounting basis

19D Invoice basis for supplies over $225,000

20 Calculation of tax payable

20A Goods and services tax incurred relating to determination of liability to tax

20B Allocation of taxable supplies following investigation by Commissioner

20C Goods and services tax incurred in making certain supplies of financial services

20D Determining availability of deduction under section 20C from supplies by another person

20E Determining supplies charged at 0% under section 11A(1)(q) and (r) from supplies by another person

20F Election that sections 11A(1)(q) and (r) and 20C apply

21 Supplies of goods and services other than for making taxable supplies

21A Methods of allocating between taxable and other supplies

21B Methods of allocation for new or replacement goods and services

21C Attribution of output tax

21D Attribution of output tax in contemplation of sale of goods and services

21E Application of section 21F

21F Deductions from output tax for goods and services applied for making taxable supplies

21G Timing of deduction under section 21F

21H Application to make single deduction under section 21F

21I Fringe benefits and entertainment expenses

22 Goods and services acquired before incorporation

23 Payment of tax

23A Payment of tax relating to fringe benefits

24 Tax invoices

24BA Shared tax invoices

24B Records to be kept by recipient of imported services

25 Credit and debit notes

25AA Consequences of change in contract for imported services

25A Commissioner may approve use of symbols, etc, on electronically transmitted invoices and credit and debit notes

26 Bad debts

26A Factored debts

Part 4
Assessment of tax

27 Assessment of tax [Repealed]

28 Validity of assessments not affected by failure to comply with Act [Repealed]

29 Assessments deemed correct except in proceedings on objection [Repealed]

30 Evidence of returns and assessments [Repealed]

31 Application of Parts 4A and 8A of Tax Administration Act 1994 [Repealed]

Part 5
Objections

32 Objections to certain decisions [Repealed]

33 Objections to assessments [Repealed]

34 Commissioner may amend assessment, or objections may be submitted to Taxation Review Authority [Repealed]

35 Powers of Taxation Review Authority on determination of objection or case stated [Repealed]

36 When objection may be referred in first instance to High Court [Repealed]

36A Test case procedure [Repealed]

37 Obligation to pay tax where objection lodged [Repealed]

38 Interest on certain excess tax [Repealed]

39 Determination of objection not to affect other assessments or decisions [Repealed]

40 Objections to which this Part does not apply [Repealed]

Part 6
Recovery of tax

41 Additional tax to be payable if default made in payment of tax [Repealed]

42 Recovery of tax

43 Deduction of tax from payment due to defaulters

44 Application of certain provisions of Income Tax Act 1976 relating to recovery procedures [Repealed]

Part 7
Refunds and relief from tax

45 Refund of excess tax

46 Commissioner's right to withhold payments

47 Tax paid in excess may be set off against tax payable when assessment re-opened

48 Power of Commissioner in respect of small amounts [Repealed]

48A Relief from tax where new start grant made

49 Relief from additional tax [Repealed]

50 Appropriation of refunds [Repealed]

Part 8
Registration

51 Persons making supplies in course of taxable activity to be registered

51B Persons treated as registered

52 Cancellation of registration

53 Registered person to notify change of status

54 Liabilities not affected by ceasing to be registered person

Part 9
Special cases

55 Group of companies

56 Branches and divisions

56B Branches and divisions in relation to certain imported services

57 Unincorporated bodies

58 Personal representative, liquidator, receiver, etc

59 Liability of agent of absentee principal for returns and tax

60 Agents and auctioneers

61 Liability for tax payable by company left with insufficient assets

61A Company Amalgamations

61B Application of Part 9 of Tax Administration Act 1994 [Repealed]

Part 10
Penalties

62 Offences [Repealed]

63 Officers and employees of corporate bodies [Repealed]

64 Proceedings to be taken summarily [Repealed]

65 Information may charge several offences [Repealed]

66 Information may be laid within 10 years [Repealed]

67 Penal tax in case of evasion [Repealed]

68 Nature of penal tax [Repealed]

69 Assessment of penal tax [Repealed]

70 Objections to penal tax [Repealed]

71 Recovery of penal tax [Repealed]

72 Recovery of penal tax from executors or administrators [Repealed]

73 Recovery of penal tax not affected by conviction of registered person [Repealed]

74 Publication of names of tax evaders [Repealed]

Part 11
General provisions

75 Keeping of records

76 Avoidance

77 New Zealand currency

78 Effect of imposition or alteration of tax

78A Returns to be furnished in 2 parts for taxable period in which change in rate of tax occurs

78B Adjustments to tax payable for persons furnishing returns on payments basis following change in rate of tax

78BA Adjustments to tax payable in relation to credit and debit notes following change in rate of tax

78C Change in accounting basis coinciding with or occurring after change in rate of tax

78D Liability to pay past tax, etc, not affected by alteration in the law

78E Alteration of agreed price in relation to supply mistakenly believed to be of a going concern

79 Disclosure of information

80 Power to extend time for doing anything under Act [Repealed]

81 Regulations [Repealed]

Part 12
Transitional provisions

82 Registration of persons liable to be registered on 1 October 1986 [Repealed]

83 Deduction for sales tax [Repealed]

84 Supplies prior to 1 October 1986

84B Supplies of services made before insertion of section 8(4B)

85 Certain contracts entered into on or before 20 August 1985

86 Alternative method of accounting for transitional supplies

Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006

Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006

Taxation (Business Taxation and Remedial Matters) Act 2007

Climate Change Response (Emissions Trading) Amendment Act 2008

Reprint notes


An Act to make provision for the imposition and collection of goods and services tax

BE IT ENACTED by the General Assembly of New Zealand in Parliament assembled, and by the authority of the same, as follows: