21D Calculating amount of adjustment

(1)

If a percentage difference arises for an adjustment period, a registered person must make a positive or negative adjustment for the period of an amount calculated using the formula—

full input tax deduction × percentage difference.

(2)

In the formula,—

(a)

full input tax deduction is the total amount of input tax on the supply, including any nominal GST component chargeable under section 20(3J)(a)(i):

(b)

percentage difference has the meaning set out in section 21G(1)(c).

(3)

For the purposes of subsection (1) and section 20G,—

(a)

if the adjustment is positive and the percentage actual use is more than the person’s percentage intended use or previous actual use, as applicable, the person is entitled to an additional deduction under section 20(3)(e) or (hb), as applicable:

(b)

if the adjustment is negative and the percentage actual taxable use is less than the person’s percentage intended use or previous actual use, as applicable, the person must treat the amount as a positive amount of output tax and attribute it to a taxable period under section 20(4).

Section 21D: 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 21D(3): amended (with effect on 1 April 2013, applying in relation to supplies of goods other than land or improvements to land made on or after 1 April 2014; for supplies of land or improvements to land, applying from 17 July 2013), on 17 July 2013, by section 133(1) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 21D(3)(a): amended (with effect on 1 April 2013, applying in relation to supplies of goods other than land or improvements to land made on or after 1 April 2014; for supplies of land or improvements to land, applying from 17 July 2013), on 17 July 2013, by section 133(2) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 21D(3)(b): amended, on 30 March 2017, by section 359 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).