Part 8 Registration

51 Persons making supplies in course of taxable activity to be registered

(1)

Subject to this Act, every person who, on or after 1 October 1986, carries on any taxable activity and is not registered, becomes liable to be registered—

(a)

at the end of any month where the total value of supplies made in New Zealand in that month and the 11 months immediately preceding that month in the course of carrying on all taxable activities has exceeded $60,000 (or such larger amount as the Governor-General may, from time to time, by Order in Council declare):

provided that a person does not become liable to be registered by virtue of this paragraph where the Commissioner is satisfied that the value of those supplies in the period of 12 months beginning on the day after the last day of the period referred to in the said paragraph will not exceed that amount:

(b)

at the commencement of any month where there are reasonable grounds for believing that the total value of the supplies to be made in New Zealand in that month and the 11 months immediately following that month will exceed the amount specified in paragraph (a):

provided that any such person shall not become liable where the Commissioner is satisfied that that value will exceed that amount in that period solely as a consequence of—

(c)

any ending of, including a premature ending of, or any substantial and permanent reduction in the size or scale of, any taxable activity carried on by that person; or

(d)

the replacement of any plant or other capital asset used in any taxable activity carried on by that person; or

(e)

the supply, to persons who are non-residents but are physically present in New Zealand, of telecommunications services that are treated as being supplied in New Zealand under sections 8(6) and 8A.

(1B)

For the purposes of determining under subsection (1) the liability of a unit title body corporate to be registered, the value of a supply of a service made by the body corporate to a member is not included in the total value of supplies made in New Zealand by the body corporate.

(1C)

For the purposes of subsection (1), if the person is a non-resident supplier of remote services to which section 8(3)(c) applies, then in determining whether the person is liable to be registered, the person may use a fair and reasonable method of converting foreign currency amounts into New Zealand currency amounts.

(2)

Every person who, by virtue of subsection (1), becomes liable to be registered shall apply to the Commissioner in the prescribed form for registration under this Act, within 21 days of becoming so liable, and provide the Commissioner with such further particulars as the Commissioner may require for the purpose of registering that person.

(3)

Notwithstanding subsections (1) and (2), every person who satisfies the Commissioner that, on or after 1 October 1986,—

(a)

that person is carrying on any taxable activity; or

(b)

that person intends to carry on any taxable activity from a specified date,—

may apply to the Commissioner in the prescribed form for registration under this Act, and provide the Commissioner with such further particulars as the Commissioner may require for the purpose of registering that person.

(4)

Where any person has—

(a)

made application for registration pursuant to subsection (2), (3), or section 54B, and the Commissioner is satisfied that that person is eligible to be registered under this Act, that person shall be a registered person for the purposes of this Act with effect from such date as the Commissioner may determine; or

(b)

not made application for registration pursuant to subsection (2), and the Commissioner is satisfied that that person is liable to be registered under this Act, that person shall be a registered person for the purposes of this Act with effect from the date on which that person first became liable to be registered under this Act:

provided that the Commissioner may, having regard to the circumstances of the case, determine that person to be a registered person from such later date as the Commissioner considers equitable.

(5)

Notwithstanding anything in this Act, where any taxable activity is carried on by any non-profit body in branches or divisions, that non-profit body may apply to the Commissioner for any such branch or division to be a separate person for the purposes of this section, and if each such branch or division maintains an independent system of accounting and can be separately identified by reference to the nature of the activities carried on or the location of that branch or division, each such branch or division shall be deemed to be a separate person, and not a part of the non-profit body, and, where any such branch or division is a separate person pursuant to this subsection, any taxable activity carried on by that branch or division shall, to that extent, be deemed not to be carried on by the non-profit body first mentioned in this subsection.

(5B)

A unit title body corporate that is registered under this Act as a result of an application under subsection (3) made on a date (the application date) on or after the date of introduction of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Bill must be registered with effect from a date after the application date.

(6)

The provisions of this Act relating to the determination of the value of any supply of goods and services shall apply for the purposes of this section, with the modification that no regard shall be had to any tax charged in respect of any such supply.

(7)

An application for registration under this Act purporting to be made by or on behalf of any person shall for all purposes be deemed to have been made by that person or by that person’s authority, as the case may be, unless the contrary is proved.

Section 51(1)(a): amended, on 30 March 2009, by section 27 of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).

Section 51(1)(a): amended (with effect on 3 December 1985), on 8 August 1986, by section 26(a) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 51(1)(b): amended (with effect on 3 December 1985), on 8 August 1986, by section 26(b) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 51(1)(c): amended, on 10 October 2000 (applying on and after 10 October 2000), by section 109(2) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 51(1)(d): amended, on 1 July 2003, by section 160 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).

Section 51(1)(e): added, on 1 July 2003, by section 160 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).

Section 51(1)(e): amended, on 25 November 2003, by section 162 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 51(1B): inserted (with effect on 1 October 1986), on 24 February 2016, by section 281(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section 51(1C): inserted, on 1 October 2016, by section 66 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 51(4)(a): amended, on 1 April 2014, by section 137 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 51(4)(b): amended, on 24 March 1988 (applying to every person who becomes liable to be registered under this Act on or after 24 March 1988), by section 15(1) of the Goods and Services Tax Amendment Act 1988 (1988 No 7).

Section 51(5): amended, on 2 June 2016, by section 191 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 51(5B): inserted (with effect on 26 February 2015), on 24 February 2016, by section 281(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section 51(7): added, on 19 December 1989, by section 14 of the Goods and Services Tax Amendment Act (No 2) 1989 (1989 No 152).