This note is not part of the order, but is intended to indicate its general effect.
This order, which comes into force on 1 July 2003, amends the Goods and Services Tax (Grants and Subsidies) Order 1992. The effect of this amendment is that any part of a payment made by the New Zealand Agency for International Development to a New Zealand organisation that, as a condition of the payment, must be—
•transferred outside New Zealand; and
•transferred to an organisation that is operating overseas; and
•for the purpose of acquiring goods or services overseas,—
is declared to be a non-taxable grant or subsidy for the purposes of section 5(6D) of the Goods and Services Tax Act 1985 and is therefore not subject to goods and services tax.