19 Accounting basis

(1)

Subject to sections 19A to 19D, every registered person must account for tax payable on an invoice basis for the purpose of section 20.

(1B)

Despite subsection (1), if the Commissioner registers a non-resident person under section 54B, the person must account for tax payable on a payments basis for the purpose of section 20.

(2)

The Commissioner may, on application in that behalf by a registered person, direct that for the purposes of section 20 the registered person account for tax payable—

(a)

on a payments basis, if the registered person satisfies the requirements of section 19A(1); or

(b)

on a hybrid basis.

(3)

The Commissioner may, on application in that behalf by a registered person who pursuant to a direction of the Commissioner accounts for tax payable on a hybrid basis or a payments basis, direct that the registered person account for tax payable—

(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 of the Companies Act 1993) of a registered person who accounts for tax payable on a payments basis may not apply to change the registered person’s accounting basis to an invoice basis.

(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), the registered person shall account for tax payable on the accounting basis directed by the Commissioner with effect from—

(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, on 1 April 1991 (applying to allow changes in a registered person’s accounting basis in respect of taxable periods commencing on and after 1 April 1991), by section 3(1) of the Goods and Services Tax Amendment Act 1991 (1991 No 11).

Section 19(1): substituted, on 10 October 2000 (applying on and after 10 October 2000), by section 95(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 19(1B): inserted, on 1 April 2014, by section 126 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 19(2): amended, on 2 June 2016, by section 187(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 19(3): amended, on 2 June 2016, by section 187(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 19(3B): inserted, on 2 November 2012 (applying in relation to an application for a change to a registered person’s accounting basis received on or after that date), by section 213 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).