21B Adjustments when person or partnership becomes registered after acquiring goods and services

(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 1996 on which tax has been levied under 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, if the person is a member of a partnership, the partnership uses the goods or services for making taxable supplies.

(2)

The person or partnership, as applicable, may make an adjustment under sections 20G, 21, and 21A, as applicable, treating as the first adjustment period, the period that—

(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)

For the purposes of this section,—

(a)

the person or partnership, as applicable, must either—

(i)

provide a tax invoice in relation to the supply, as required by section 20(2); or

(ii)

have adequate records that enable the identification of the particulars of an invoice as required by section 24(3) or (7), as applicable:

(b)

in identifying the percentage actual use of the goods or services in the first adjustment period referred to in subsection (2), the person or partnership, as applicable, may use a method that provides a fair and reasonable result.

(4)

[Repealed]

(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, 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 21B heading: amended (with effect on 1 April 2011), on 29 August 2011 (applying to supplies made on or after 1 April 2011), by section 239(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section 21B(1)(a): replaced (with effect on 1 April 2011), on 2 November 2012, by section 218(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 21B(1)(a): amended (with effect on 26 February 2015), on 24 February 2016, by section 277 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section 21B(1)(b): amended (with effect on 1 April 2011), on 29 August 2011 (applying to supplies made on or after 1 April 2011), by section 239(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section 21B(2): amended (with effect on 1 April 2013, applying in relation to supplies of goods other than land or improvements to land made on or 1 April 2014; for supplies of land or improvements to land, applying from 17 July 2013), on 17 July 2013, by section 132 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 21B(2): amended (with effect on 1 April 2011), on 29 August 2011 (applying to supplies made on or after 1 April 2011), by section 239(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section 21B(3)(a): amended (with effect on 1 April 2011), on 29 August 2011 (applying to supplies made on or after 1 April 2011), by section 239(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section 21B(3)(a)(ii): amended (with effect on 1 April 2011), on 2 November 2012, by section 218(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 21B(3)(b): amended (with effect on 1 April 2011), on 29 August 2011 (applying to supplies made on or after 1 April 2011), by section 239(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section 21B(4): repealed (with effect on 1 April 2011), on 2 November 2012, by section 218(3) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 21B(5): inserted (with effect on 1 April 2011), on 2 November 2012, by section 218(4) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).