Goods and Services Tax Act 1985

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 to make an adjustment if—

(a)

section 20(3D) applies to them:

(ab)

the person is a non-resident who has incurred input tax as defined in section 3A(1)(b) for goods and who—

(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:

(b)

the value of the goods or services, excluding GST, is $5,000 or less:

(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.

(3)

An adjustment arises on the last day of the relevant adjustment period.

(4)

For an adjustment to which sections 21A to 21H apply, a registered person who principally makes supplies of financial services may choose to use a fair and reasonable method, as agreed with the Commissioner, for making adjustments in subsequent adjustment periods. For this purpose,—

(a)

the method must have regard to the tenor of sections 21A to 21H:

(b)

the person may include a group of companies.

(4B)

A registered person may choose to use, for making adjustments to which sections 21A to 21H apply, a fair and reasonable method of calculating adjustments that—

(a)

has regard to the tenor of sections 21A to 21H; and

(b)

is agreed with the Commissioner by—

(i)

the registered person, if the registered person reasonably expects to make supplies of goods or services with a value of more than $24,000,000 in a 12-month period that includes the month in which the registered person proposes the agreement:

(ii)

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.

(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 of the Income Tax Act 2007.

Section 21: substituted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 15(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 21(2): amended, on 18 March 2019, by section 303 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section 21(2)(ab): inserted, on 30 March 2017, by section 358(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 21(4B): inserted, on 30 March 2017, by section 358(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 21(5): inserted (with effect on 1 April 2011), on 2 November 2012, by section 216 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).