Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Bill

  • enacted
52 Section 10 amended (Value of supply of goods and services)

(1)

After section 10(14), insert:

(14B)

If a supply of services is treated as having been made under section 5(10B), the consideration for the supply is calculated using the formula—

resident amounts − worldwide prizes × (resident amounts ÷ worldwide amounts).

amounts received from residents − prizes paid to residents.

(14C)

In the formula in subsection (14B),—

(a)

resident amounts is the total amount in money received in relation to the supply by the non-resident person who conducts the gambling or the prize competition, as applicable, from all persons resident in New Zealand as determined under section 8B(1) to (3):

(b)

worldwide prizes is the total amount of all prizes paid and payable in money worldwide in relation to the supply:

(c)

worldwide amounts is the total amount in money received worldwide in relation to the supply by the non-resident person who conducts the gambling or the prize competition, as applicable.

(a)

amounts received from residents is the total amount in money received in relation to the supply by the non-resident person who conducts the gambling or the prize competition, as applicable, from all persons resident in New Zealand:

(b)

prizes paid to residents is the total amount of all prizes paid and payable in money to persons resident in New Zealand in relation to the supply.

(14D)

If amounts of consideration calculated under subsection (14B) for all of the non-resident’s supplies of gambling or prize competitions for a taxable period are added together (the total consideration), and the total consideration is a negative amount, then the negative amount may be used to reduce a corresponding positive amount of total consideration for the next taxable period.

(14E)

If, after the use of the negative amount described in subsection (14D), an excess negative amount remains, the excess amount may be used to reduce a positive amount of total consideration in the immediately following taxable period.

(14F)

Subsection (14E) continues to apply until the excess amount is extinguished.

(2)

In section 10(15C), replace “the supply, the value of the supply” with “the supply, or section 20(3JC) applies, the value of the supply”.