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

  • enacted
57 Section 24 amended (Tax invoices)

(1)

In section 24(4), replace the text after paragraph (e) with:

provided that this subsection does not apply to a supply—

(f)

that is charged with tax pursuant to section 11, 11A, 11AB, or 11B:

(g)

for which a supplier made an election under subsection (5B).

(2)

Replace section 24(5) with:

(5)

Notwithstanding any other provision of this Act, a supplier is not required to provide a tax invoice if—

(a)

the consideration in money for a supply does not exceed $50 (or such greater amount as the Governor-General may, from time to time, by Order in Council declare):

(b)

the supplier is a non-resident supplier of remote services to which section 8(3)(c) applies.

(5B)

Despite subsection (5), a supplier may choose to provide a tax invoice to the recipient of the services if—

(a)

the supplier is a non-resident supplier of remote services to which section 8(3)(c) applies, and—

(i)

section 8(4) was incorrectly applied to the treatment of the supply, so that the services were treated as being supplied in New Zealand when they should have been treated as being supplied outside New Zealand; or

(ii)

section 11A(1)(x) was incorrectly applied to the treatment of the supply, so that the supply was not zero-rated when it should have been; and

(b)

the consideration in money for the supply, in New Zealand currency as at the time of the supply, does not exceed $1,000; and

(c)

the recipient—

(i)

notifies the supplier that they are a registered person:; or

(ii)

provides their registration number or New Zealand business number to the supplier.

(5C)

Subsection (5B) does not apply to the supply of a contract of insurance.

(5D)

If an election is made under subsection (5B) in circumstances where section 8(4) was incorrectly applied to the treatment of the supply, the supplier and the recipient are treated as agreeing that section 8(4) will not apply to the supply.