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 or the time any payment is received by the supplier, in respect of that supply.

(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) as being made in New Zealand, at the end of the taxable period that includes the date that is 2 months after the first balance date of the recipient that follows the completion of the performance of the services:

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) refers, on the day after the last day of the period during which the recipient may exercise the right under section 36M of the Fair Trading Act 1986 to cancel the agreement:

(c)

where that supply is a supply to which section 5(5) refers, at the time at which the property in the goods is transferred to the recipient:

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 or 36G of the Fair Trading Act 1986:

(d)

where that supply is deemed to be made pursuant to section 5(8), when and to the extent that the amount of the money is dealt with as specified in that section:

(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 or gambling played by means of a gaming machine as defined in section 4(1) of the Gambling Act 2003:

(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) at the time a casino count takes place:

(h)

if section 8(4B)(b)(ii) applies, the supply is treated as having been made on the last day in the adjustment period when the percentage actual use of the services falls below 95%.

(2A)

Despite subsection (1), a supply to which section 5(11G) applies is treated as taking place at the time the token, stamp or voucher is redeemed.

(2B)

If section 5(11H) applies, the excess consideration is treated as consideration in money for a supply that takes place at the time the token, stamp or voucher is issued.

(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 which provides for periodic payments, they shall be deemed to be successively supplied for successive parts of the period of the agreement or the enactment, and each of the successive supplies shall be deemed to take place when a payment becomes due or is received, whichever is the earlier:

(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 engineering work are supplied pursuant to any agreement or enactment which provides for the consideration for that supply to become due and payable in instalments or periodically in relation to the progressive nature of that construction, manufacture, or extension—

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 are supplied under a hire purchase agreement, that supply shall be deemed to take place at the time the agreement is entered into:

(c)

for the purposes of this subsection, the term agreement to hire means an agreement for the bailment of goods for hire and includes a lease of goods and a rental agreement; but does not include—

(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; or

(ii)

a hire purchase agreement.

(4)

[Repealed]

(5)

[Repealed]

(6)

Subject to subsections (2)(a) and (3), where the whole of the consideration (the price) for a supply under an agreement is not determined at the time of the agreement, and a supply is made under the agreement before the price is determined, the supply is deemed to take place, to the extent of a part of the price, at the earlier of when—

(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), the supply shall, to the extent that the supply is brought to charge as revenue from the Crown, be deemed to take place in the taxable period in which the bringing to charge applies.

(8)

Despite subsection (1), if a local authority makes a supply to which section 5(7)(a) applies, the supply is treated as taking place on the earlier of the following dates:

(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 may treat a supply of services in a loyalty transaction as taking place at the time at which the loyalty points are redeemed for reward. But this subsection does not apply to a token, stamp, or voucher to which section 5(11D) to (11H) applies.

(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) as made in New Zealand, the purchaser referred to in section 11C may treat the supply as taking place at the time at which the loyalty points are redeemed for reward if—

(a)

the operator meets the first and second requirements set out in section 11C; and

(b)

the purchaser meets the third requirement imposed on the operator under section 11C.

Section 9(1): amended, on 24 March 1988 (applying to supplies made on or after 24 March 1988), by section 6(1) of the Goods and Services Tax Amendment Act 1988 (1988 No 7).

Section 9(2)(a): amended, on 3 April 2006, by section 286 of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 9(2)(a)(iii): amended, on 1 January 2005, by section 147 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 9(2)(a)(iv): added, on 1 January 2005, by section 147 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 9(2)(b): amended, on 17 June 2014, by section 41(2) of the Fair Trading Amendment Act 2013 (2013 No 143).

Section 9(2)(c) proviso: amended, on 17 June 2014, by section 41(2) of the Fair Trading Amendment Act 2013 (2013 No 143).

Section 9(2)(d): substituted (with effect on 3 December 1985), on 8 August 1986, by section 7(1) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 9(2)(e): replaced, on 17 July 2013, by section 122 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 9(2)(e): amended, on 1 October 2016, by section 56 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 9(2)(g): substituted, on 1 July 2004, by section 374 of the Gambling Act 2003 (2003 No 51).

Section 9(2)(g): amended, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 8(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 9(2)(h): added, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 8(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 9(2)(h): amended (with effect on 1 April 2011), on 2 November 2012, by section 211(a) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 9(2)(h): amended (with effect on 1 April 2011), on 2 November 2012, by section 211(b) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 9(2A): inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 88(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 9(2B): inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 88(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 9(3)(a): amended (with effect on 3 December 1985), on 8 August 1986, by section 7(2)(a) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 9(3)(a): amended (with effect on 3 December 1985), on 8 August 1986, by section 7(2)(b) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 9(3)(aa): inserted (with effect on 3 December 1985), on 8 August 1986, by section 7(3) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 9(3)(aa)(ii): amended, on 19 December 1989, by section 5 of the Goods and Services Tax Amendment Act (No 2) 1989 (1989 No 152).

Section 9(3)(b): amended, on 1 April 2005, by section 139 of the Credit Contracts and Consumer Finance Act 2003 (2003 No 52).

Section 9(3)(b): amended (with effect on 3 December 1985), on 8 August 1986, by section 7(4)(a) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 9(3)(c)(i): amended (with effect on 3 December 1985), on 8 August 1986, by section 7(4)(b) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 9(3)(c)(ii): amended, on 1 April 2005, by section 139 of the Credit Contracts and Consumer Finance Act 2003 (2003 No 52).

Section 9(4): repealed (with effect on 3 December 1985), on 8 August 1986, by section 7(5) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 9(5): repealed (with effect on 3 December 1985), on 8 August 1986, by section 7(5) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 9(6): replaced, on 30 March 2017, by section 350(1) (and see section 350(2)) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 9(7): added (with effect on 1 July 1989), on 26 July 1989 (applying to supplies made on or after 1 July 1989), by section 86(1) of the Public Finance Act 1989 (1989 No 44).

Section 9(7): amended, on 10 April 1995, by section 4 of the Goods and Services Tax Amendment Act 1995 (1995 No 22).

Section 9(8): added, on 10 October 2000 (applying on and after 10 October 2000), by section 88(3) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 9(9): added, on 6 October 2009, by section 707 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 9(10): added, on 6 October 2009, by section 707 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).