Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014

192 Section 21HB amended (Transitional rule related to treatment of dwellings)

(1)

In section 21HB, in the heading replace rule with rules.

(2)

In section 21HB(1),—

(a)

replace “This section applies” with “Subsections (2) and (3) apply”:

(b)

replace “acquired or produced before 1 April 2011” with “acquired or produced in the period between 1 October 1986 and 1 April 2011”.

(3)

After section 21HB(3), insert:

(4)

A person who is required to treat a dwelling as a commercial dwelling because of the amendments to the definitions of commercial dwelling and dwelling made by section 4(3) and (4) of the Taxation (GST and Remedial Matters) Act 2010 may choose not to treat a supply of accommodation in a dwelling affected by the amendments as a taxable supply.

(5)

Subsection (4) does not apply if the total value of the person’s supplies of accommodation in dwellings affected by the amendments exceeds the threshold set out in section 51(1)(a).

(4)

After section 21HB(5), insert:

(6)

Subsection (7) applies to a person who—

(a)

is required to treat a dwelling as a commercial dwelling because of the amendments to the definitions of commercial dwelling and dwelling made by section 4(3) and (4) of the Taxation (GST and Remedial Matters) Act 2010; and

(b)

on or after 1 April 2011, has treated the supply of accommodation in a dwelling, being a residential unit in a retirement village or rest home, as a taxable supply.

(7)

The person may irrevocably choose in a tax return for a period starting before 1 April 2015, to—

(a)

continue to treat the supply as a taxable supply for that period and for subsequent periods; or

(b)

treat the supply as an exempt supply for that period and for subsequent periods, and for this purpose, the election to treat the supply as an exempt supply does not constitute a change of use for the purposes of section 21FB(4).

(5)

Subsection (2) applies to a tax position taken by a person after 22 November 2013.

(6)

Subsection (3) applies to supplies of accommodation in dwellings affected by the amendments that were acquired before 1 April 2011.

(7)

Subsection (4) applies to supplies of accommodation in dwellings affected by the amendments that are acquired before 1 April 2015.