Goods and Services Tax Act 1985

If you need more information about this Act, please contact the administering agency: Inland Revenue Department
6 Meaning of term taxable activity

(1)

For the purposes of this Act, the term taxable activity means—

(a)

any activity which is carried on continuously or regularly by any person, whether or not for a pecuniary profit, and involves or is intended to involve, in whole or in part, the supply of goods and services to any other person for a consideration; and includes any such activity carried on in the form of a business, trade, manufacture, profession, vocation, association, or club:

(b)

without limiting the generality of paragraph (a), the activities of any public authority or any local authority or public purpose Crown-controlled company.

(2)

Anything done in connection with the beginning or ending, including a premature ending, of a taxable activity is treated as being carried out in the course or furtherance of the taxable activity.

(3)

Notwithstanding anything in subsections (1) and (2), for the purposes of this Act the term taxable activity shall not include, in relation to any person,—

(a)

being a natural person, any activity carried on essentially as a private recreational pursuit or hobby; or

(aa)

not being a natural person, any activity which, if it were carried on by a natural person, would be carried on essentially as a private recreational pursuit or hobby; or

(b)

any engagement, occupation, or employment under any contract of service or as a director of a company, subject to subsection (4); or:

(c)

any engagement, occupation, or employment—

(i)

pursuant to the Members of Parliament (Remuneration and Services) Act 2013 or the Governor-General Act 2010:

(ii)

as a Judge, Solicitor-General, Controller and Auditor-General, or Ombudsman:

(iia)

pursuant to an appointment made by the Governor-General or the Governor-General in Council and evidenced by a warrant or by an Order in Council or by a notice published in the Gazette in accordance with section 2(2) of the Official Appointments and Documents Act 1919:

(iii)

as a Chairman or member of any local authority or any board, council, committee, or other body, subject to subsection (4); or

(d)

any activity to the extent to which the activity involves the making of exempt supplies.

(4)

Despite subsection (3)(b) and (c)(iii), if a director, member, or other person referred to in those paragraphs is paid a fee or another amount in relation to their engagement, occupation, or employment in circumstances in which they are required to account for the payment to their employer, the payment is treated as consideration for a supply of services by the employer to the person who made the payment to the director, member, or other person.

(5)

For the purposes of subsection (3)(b) and (c)(iii), if a person in carrying on a taxable activity, accepts an office, any services supplied by that person as holder of that office are deemed to be supplied in the course or furtherance of that taxable activity.

Section 6(1)(b): amended, on 18 March 2019, by section 298 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section 6(1)(b): amended (with effect on 3 December 1985), on 8 August 1986, by section 6 of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 6(2): substituted, on 10 October 2000 (applying on and after 10 October 2000), by section 87(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 6(3)(a): amended (with effect on 3 December 1985), on 24 March 1988 (applying to supplies made on or after 24 March 1988), by section 5(1) of the Goods and Services Tax Amendment Act 1988 (1988 No 7).

Section 6(3)(aa): inserted (with effect on 3 December 1985), on 24 March 1988 (applying to supplies made on or after 24 March 1988), by section 5(2) of the Goods and Services Tax Amendment Act 1988 (1988 No 7).

Section 6(3)(b): amended, on 30 June 2014, by section 187(1)(a) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section 6(3)(b) proviso: repealed, on 30 June 2014, by section 187(1)(b) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section 6(3)(c)(i): amended, on 16 December 2013, by section 66 of the Members of Parliament (Remuneration and Services) Act 2013 (2013 No 93).

Section 6(3)(c)(i): amended, on 23 November 2010, by section 21(2) of the Governor-General Act 2010 (2010 No 122).

Section 6(3)(c)(iia): inserted (with effect on 3 December 1985), on 24 March 1988 (applying to supplies made on or after 24 March 1988), by section 5(3) of the Goods and Services Tax Amendment Act 1988 (1988 No 7).

Section 6(3)(c)(iii): amended, on 30 March 2022, by section 9 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 6(3)(c)(iii): amended, on 30 June 2014, by section 187(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section 6(4): inserted, on 30 June 2014, by section 187(3) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section 6(5): inserted, on 30 June 2014, by section 187(3) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section 6(5): amended, on 30 March 2017, by section 348 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).