60 Agents and auctioneers

(1)

Subject to this section, for the purposes of this Act, where an agent makes a supply of goods and services for and on behalf of any other person who is the principal of that agent, that supply shall be deemed to be made by that principal and not by that agent:

provided that, where that supply is a taxable supply, that agent, being a registered person, may, notwithstanding anything in this Act, issue a tax invoice or a credit note or a debit note in relation to that supply as if that agent had made a taxable supply, and to the extent that that tax invoice or credit note or debit note relates to that supply, that principal shall not also issue, as the case may be, a tax invoice or a credit note or a debit note.

(1A)

Despite subsection (1), subsection (1AB) applies to an agent who—

(a)

is resident in New Zealand; and

(b)

makes supplies of remote services to a person resident in New Zealand for and on behalf of a non-resident principal.

(1AB)

The principal and the agent may agree that the agent, and not the principal, is treated as making the supply in the course and furtherance of a taxable activity carried on by them.

(1B)

Despite subsection (1), when a principal and their agent agree, and record their agreement in a document, either in relation to a particular supply or for a type of supply, that this subsection applies to a supply of goods or services, the supply is treated for the purposes of the Act as 2 separate supplies, being—

(a)

a supply of goods and services from the principal to the agent; and

(b)

a supply of those goods and services from the agent to the recipient, treating the agent as if they were the principal for the purpose of the supply.

(1C)

For the purposes of sections 60C and 60D, an operator of a marketplace and a resident supplier who makes supplies of services to recipients through the marketplace may treat a supply as 2 separate supplies, being—

(a)

a supply of services from the underlying supplier to the operator of the marketplace; and

(b)

a supply of those services from the operator of the marketplace to the recipient, treating the operator as if they were the underlying supplier of the services.

(2)

Subject to this section, for the purposes of this Act, where any registered person makes a taxable supply of goods and services to an agent who is acting on behalf of another person who is the principal for the purposes of that supply, that supply shall be deemed to be made to that principal and not to that agent:

provided that that agent may nevertheless request that that agent be issued with a tax invoice and that registered person may issue a tax invoice or a credit note or a debit note as if the supply were made to that agent.

(2B)

Despite subsection (2), when a principal and their agent agree, and record their agreement in a document, either in relation to a particular supply or for a type of supply, that this subsection applies to a supply of goods or services, the supply by a person is treated for the purposes of the Act as 2 separate supplies, being—

(a)

a supply of goods and services from the person to the agent, treating the agent as if they were the principal for the purpose of the supply; and

(b)

a supply of those goods and services from the agent to the principal.

(3)

Where a tax invoice or a credit note or a debit note in relation to a supply has been issued—

(a)

by an agent pursuant to subsection (1); or

(b)

to an agent pursuant to subsection (2),—

the agent shall maintain sufficient records to enable the name and address and registration number (if any) of the principal to be ascertained.

(4)

For the purposes of subsection (5), the expression auctioneer means a registered person carrying on a taxable activity which comprises or includes the supply by auction of goods as an auctioneer or agent for or on behalf of another person (hereafter in this section referred to as a principal).

(5)

Notwithstanding anything in the foregoing provisions of this section, where the principal and the auctioneer agree to have a supply by auction of any goods, not being a taxable supply, treated as if that supply had been made by that auctioneer and not by that principal, that supply shall be charged with tax as if it were made by that auctioneer in the course or furtherance of that auctioneer’s taxable activity and that auctioneer may—

(a)

recover the amount of tax charged on that supply from that principal as a debt together with the costs of recovery in any court of competent jurisdiction; or

(b)

retain or deduct the same out of any money in that auctioneer’s hands belonging or payable to that principal.

(6)

Notwithstanding anything in subsection (2), where any registered person makes a taxable supply (not being a supply that is charged with tax at the rate of 0% pursuant to section 11, 11A, 11AB or 11B) of goods and services to an agent, being a registered person, who is acting for or on behalf of another person who is the principal for the purposes of that supply, and—

(a)

that principal is a non-resident and is not a registered person; and

(b)

that supply is directly in connection with either the exportation, or the arranging thereof, of goods from New Zealand to any country or place outside New Zealand, or the importation, or the arranging thereof, of goods to New Zealand from any country or place outside New Zealand, including, in either case, the transportation of those goods within New Zealand as part of that exportation or, as the case may be, importation,—

this Act shall, where that agent and that principal agree, have effect as if that supply were made to that agent and not to that principal.

(7)

Despite subsection (1), a supply of goods, being goods to which section 12(1) applies, that have been imported by an agent who is acting for and on behalf of the principal, is treated as being a supply made by the agent and not by the principal if—

(a)

the principal is a non-resident and is not a registered person; and

(b)

the agent is a resident and is a registered person at the time the goods are imported; and

(c)

the principal and agent agree that the supply was made by the agent and not by the principal.

Section 60(1): substituted (with effect on 3 December 1985), on 8 August 1986, by section 31(1) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 60(1A): inserted, on 1 October 2016, by section 71(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 60(1AB): inserted, on 1 October 2016, by section 71(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 60(1B): inserted, on 17 July 2013, by section 143 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 60(1B): amended, on 2 June 2016, by section 199 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 60(1C): inserted, on 1 October 2016, by section 71(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 60(2) proviso: amended (with effect on 3 December 1985), on 8 August 1986, by section 31(2)(a) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 60(2B): inserted, on 30 March 2017, by section 370 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 60(3): amended (with effect on 3 December 1985), on 8 August 1986, by section 31(2)(b) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 60(6): added (with effect on 3 December 1985), on 8 August 1986, by section 31(3) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 60(6): amended, on 1 July 2003, by section 161 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).

Section 60(6): amended, on 10 October 2000 (applying on and after 10 October 2000), by section 113(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 60(6)(a): amended, on 25 November 2003, by section 167(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 60(7): added, on 10 October 2000 (applying on and after 10 October 2000), by section 113(2) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 60(7)(a): amended, on 25 November 2003, by section 167(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 60(7)(b): amended, on 25 November 2003, by section 167(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).