Goods and Services Tax Act 1985

If you need more information about this Act, please contact the administering agency: Inland Revenue Department

Warning: Some amendments have not yet been incorporated

Search within this Act

Contents
Previous section
Next section
Tag section
Remove
Previous hit
Next hit

Version as at 31 March 2023

Goods and Services Tax Act 1985

Public Act		1985 No 141
Date of assent		3 December 1985
Commencement		3 December 1985

Note

The Parliamentary Counsel Office has made editorial and format changes to this version using the powers under subpart 2 of Part 3 of the Legislation Act 2019.

Note 4 at the end of this version provides a list of the amendments included in it.

This Act is administered by the Inland Revenue Department.

	Title
1	Short Title, etc
	Part 1 Interpretation
2	Interpretation
2A	Meaning of associated persons
3	Meaning of term financial services
3A	Meaning of input tax
4	Meaning of term open market value
4B	Meaning of distantly taxable goods
5	Meaning of term supply
5B	Supply of certain imported goods and services
6	Meaning of term taxable activity
7	Act to bind Crown
	Part 2 Imposition of tax
8	Imposition of goods and services tax on supply
8A	Certain supplies of telecommunications services
8B	Remote services: determining residence of recipients
8BB	Certain supplies by non-residents: determining whether recipient is registered person
9	Time of supply
10	Value of supply of goods and services
10B	Estimating value of goods in supply for treatment as distantly taxable goods
10C	Election by supplier that supplies of higher-value goods be supplies of distantly taxable goods
11	Zero-rating of goods
11A	Zero-rating of services
11AB	Zero-rating of telecommunications services
11B	Zero-rating of some supplies by territorial authorities, some supplies involving contributions to local authorities
11C	Treatment of supplies by operators of loyalty programmes
12	Imposition of goods and services tax on imports
12B	Reimbursement of tax by supplier if recipient charged tax on both supply and importation
13	Imposition of goods and services tax on goods liable to excise duty and supplied at in bond prices [Repealed]
14	Exempt supplies
	Part 3 Returns and payment of tax
15	Taxable periods
15A	Change in registered person’s taxable period [Repealed]
15AB	Transitional provision: alignment of taxable periods with balance dates [Repealed]
15B	Taxable periods aligned with balance dates
15C	Changes in taxable periods
15D	When change in taxable period takes effect
15E	Meaning of end of taxable period
15EB	Approval of taxable period not consisting of whole calendar months
16	Taxable period returns
17	Special returns
18	Other returns
19	Accounting basis
19A	Requirements for accounting on payments basis
19AB	Local authorities accounting on payments basis on and after 1 July 2001 [Repealed]
19B	Particulars to be furnished and prepared where change in accounting basis
19C	Tax payable, or refund, where change in accounting basis
19D	Invoice basis for supplies over $225,000
	Calculation of tax payable: deductions, apportionment, other adjustments
20	Calculation of tax payable
20A	Goods and services tax incurred relating to determination of liability to tax
20B	Allocation of taxable supplies following investigation by Commissioner
20C	Goods and services tax incurred in making certain supplies of financial services
20D	Determining availability of deduction under section 20C from supplies by another person
20E	Determining supplies charged at 0% under section 11A(1)(q) and (r) from supplies by another person
20F	Election that sections 11A(1)(q) and (r) and 20C apply
20G	Treatment of supplies of certain assets
20H	Goods and services tax incurred in making financial services for raising funds
21	Adjustments for apportioned supplies
21A	When adjustments required
21B	Adjustments when person or partnership becomes registered after acquiring goods and services
21C	Adjustments for first and subsequent adjustment periods
21CB	Rate for change of use before 1 October 2010 [Repealed]
21D	Calculating amount of adjustment
21E	Concurrent uses of land
21F	Treatment on disposal
21FB	Treatment when use changes to total taxable or non-taxable use
21G	Definitions and requirements for apportioned supplies and adjustment periods
21H	Transitional accounting rules
21HB	Transitional rules related to treatment of dwellings
21HC	Transitional rules relating to members of unit title bodies corporate
21I	Fringe benefits and entertainment expenses
22	Goods and services acquired before incorporation
23	Payment of tax
23A	Payment of tax relating to fringe benefits
24	Tax invoices
24BA	Shared tax invoices
24BAB	Receipts for supplies
24BAC	Information for importation of goods including distantly taxable goods
24B	Records to be kept by recipient of imported goods and services
25	Adjustments for inaccuracies
25AA	Consequences of change in contract for imported goods and services
25AB	Consequences of change in contract for secondhand goods
25A	Commissioner may approve use of symbols, etc, on electronically transmitted invoices, receipts, and credit and debit notes
26	Bad debts
26AA	Marketplace operators: bad debts for amounts of tax
26A	Factored debts
	Part 4 Assessment of tax [Repealed]
27	Assessment of tax [Repealed]
28	Validity of assessments not affected by failure to comply with Act [Repealed]
29	Assessments deemed correct except in proceedings on objection [Repealed]
30	Evidence of returns and assessments [Repealed]
31	Application of Parts 4A and 8A of Tax Administration Act 1994 [Repealed]
	Part 5 Objections [Repealed]
32	Objections to certain decisions [Repealed]
33	Objections to assessments [Repealed]
34	Commissioner may amend assessment, or objections may be submitted to Taxation Review Authority [Repealed]
35	Powers of Taxation Review Authority on determination of objection or case stated [Repealed]
36	When objection may be referred in first instance to High Court [Repealed]
36A	Test case procedure [Repealed]
37	Obligation to pay tax where objection lodged [Repealed]
38	Interest on certain excess tax [Repealed]
39	Determination of objection not to affect other assessments or decisions [Repealed]
40	Objections to which this Part does not apply [Repealed]
	Part 6 Recovery of tax
41	Additional tax to be payable if default made in payment of tax [Repealed]
42	Recovery of tax
43	Deduction of tax from payment due to defaulters
44	Application of certain provisions of Income Tax Act 1976 relating to recovery procedures [Repealed]
	Part 7 Refunds and relief from tax
45	Refund of excess tax
46	Commissioner’s right to withhold payments
47	Tax paid in excess may be credited towards tax payable when assessment re-opened
48	Power of Commissioner in respect of small amounts [Repealed]
48A	Relief from tax where new start grant made [Repealed]
49	Relief from additional tax [Repealed]
50	Appropriation of refunds [Repealed]
	Part 8 Registration
51	Persons making supplies in course of taxable activity to be registered
51B	Persons treated as registered
52	Cancellation of registration
53	Registered person to notify change of status
54	Liabilities not affected by ceasing to be registered person
54B	Requirements for registration for certain non-resident suppliers
54C	Cancellation of registration of certain non-residents
	Part 9 Special cases
55	GST groups
55B	Supplier group and issuing member
56	Branches and divisions
56B	Branches and divisions in relation to certain imported goods and services
57	Unincorporated bodies
58	Personal representative, liquidator, receiver, etc
59	Liability of agent of absentee principal for returns and tax
60	Agents and auctioneers
60B	Nominated recipients of supplies
60C	Electronic marketplaces
60D	Approved marketplaces
60E	When redeliverer is supplier of distantly taxable goods
60F	Operator of marketplace or redeliverer making return based on faulty information
60G	Requirements for treatment of information by operator of marketplace or redeliverer
61	Liability for tax payable by company left with insufficient assets
61A	Company amalgamations
61B	Application of Part 9 of Tax Administration Act 1994 [Repealed]
	Part 10 Penalties [Repealed]
62	Offences [Repealed]
63	Officers and employees of corporate bodies [Repealed]
64	Proceedings to be taken summarily [Repealed]
65	Information may charge several offences [Repealed]
66	Information may be laid within 10 years [Repealed]
67	Penal tax in case of evasion [Repealed]
68	Nature of penal tax [Repealed]
69	Assessment of penal tax [Repealed]
70	Objections to penal tax [Repealed]
71	Recovery of penal tax [Repealed]
72	Recovery of penal tax from executors or administrators [Repealed]
73	Recovery of penal tax not affected by conviction of registered person [Repealed]
74	Publication of names of tax evaders [Repealed]
	Part 11 General provisions
75	Keeping of records
75B	General rules for giving information or communicating matters
76	Avoidance
77	New Zealand or foreign currency
78	Effect of imposition or alteration of tax
78AA	Exceptions to effect of increase of tax
78A	Returns to be furnished in 2 parts for taxable period in which change in rate of tax occurs
78B	Adjustments to tax payable for persons furnishing returns following change in rate of tax
78BA	Adjustments to tax payable in relation to credit and debit notes following change in rate of tax
78C	Change in accounting basis coinciding with or occurring after change in rate of tax
78D	Liability to pay past tax, etc, not affected by alteration in the law
78E	Alteration of agreed price in relation to supply mistakenly believed to be of a going concern
78F	Liability in relation to supplies of land
78G	Railways vesting: zero-rating and timing of tax calculations and documents [Repealed]
78H	Land in Waitara vested in Te Kōwhatu Tū Moana to be zero-rated
78I	Support package payment made by water services entity to be zero-rated
79	Disclosure of information
80	Power to extend time for doing anything under Act [Repealed]
81	Regulations [Repealed]
81B	Limitation on amending assessments for legislative charges
	Part 12 Transitional provisions
82	Registration of persons liable to be registered on 1 October 1986 [Repealed]
83	Deduction for sales tax [Repealed]
84	Supplies prior to 1 October 1986
84B	Supplies of services made before insertion of section 8(4B)
85	Certain contracts entered into on or before 20 August 1985
85B	Certain contracts entered into before 1 October 2016
85C	Certain contracts entered into before 1 December 2019
86	Alternative method of accounting for transitional supplies
87	Change of accounting basis: transitional provision for certain local authorities
88	Valuation: non-profit body making certain supplies, deregistering, or acquiring certain assets of non-profit body
89	COVID-19-related payments made before commencement of Goods and Services Tax (Grants and Subsidies) Amendment Order 2020
	Goods and Services Tax Amendment Act (No 3) 1991
	Goods and Services Tax Amendment Act (No 2) 1995
	Goods and Services Tax Amendment Act 1996
	Taxation (Remedial Provisions) Act 1996
	Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001
	Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002
	Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003
	Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006
	Taxation (Savings Investment and Miscellaneous Provisions) Act 2006
	Taxation (Tax Administration and Remedial Matters) Act 2011
	Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012
	Notes

An Act to make provision for the imposition and collection of goods and services tax

1 Short Title, etc

(1)

This Act may be cited as the Goods and Services Tax Act 1985.

(2)

This Act, other than section 12, is hereby declared to be one of the Inland Revenue Acts within the meaning of the Tax Administration Act 1994.

(3)

Section 12 shall be deemed to be part of the Customs and Excise Act 2018.

Section 1(2): substituted, on 1 April 1995 (applying with respect to the tax on income derived in 1995–96 and subsequent income years), by section YB 1 of the Income Tax Act 1994 (1994 No 164).

Section 1(2): amended (with effect on 1 October 1996), on 27 March 1998, by section 51 of the Taxation (Remedial Provisions) Act 1998 (1998 No 7).

Section 1(3): substituted, on 1 October 1996, by section 289(1) of the Customs and Excise Act 1996 (1996 No 27).

Section 1(3): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Part 1 Interpretation

2 Interpretation

(1)

In this Act, other than in section 12, unless the context otherwise requires,—

adjustment period, for a supply of goods or services to which sections 8(4B)(b), 9(2)(h), 20(3C) to (3J) and (3JC), and 21 to 21H apply, means a first or subsequent adjustment period referred to in section 21G(2)

premises of a similar kind to those referred to in subparagraphs (i) to (iv); and

(b)

excludes—

(i)

a hospital except to the extent to which the hospital is a residential establishment:

(ii)

a dwelling referred to in paragraph (b)(iii) of the definition of dwelling

Commissioner means the Commissioner of Inland Revenue as defined in the Tax Administration Act 1994

common property has the same meaning as in the Unit Titles Act 2010

that the person occupies, or that it can reasonably be foreseen that the person will occupy, as their principal place of residence; and

(ii)

in relation to which the person has quiet enjoyment, as that term is used in section 38 of the Residential Tenancies Act 1986; and

(b)

(d)

any other substance that the Governor-General may, from time to time, by Order in Council, declare to be fine metal for the purposes of this definition (see subsection (3))

going concern, in relation to a supplier and a recipient, means the situation where—

(a)

there is a supply of a taxable activity, or of a part of a taxable activity where that part is capable of separate operation; and

(b)

all of the goods and services that are necessary for the continued operation of that taxable activity or that part of a taxable activity are supplied to the recipient; and

(c)

the supplier carries on, or is to carry on, that taxable activity or that part of a taxable activity up to the time of its transfer to the recipient

goods means all kinds of personal or real property; but does not include choses in action, money, cryptocurrency, or a product that is transmitted by means of a wire, cable, radio, optical or other electromagnetic system or by means of a similar technical system

GST group means a group of persons that meets the requirements of section 55

hire, in relation to goods, includes a letting on any terms, including a lease

hire purchase agreement has the same meaning as in section YA 1 of the Income Tax Act 2007; but includes an agreement that would be a hire purchase agreement but for the exclusion in paragraph (f) of the definition of that term in that section

hospital—

(a)

means an institution—

(i)

that is a hospital care institution within the meaning of section 58(4) of the Health and Disability Services (Safety) Act 2001; or

(ii)

whose principal purpose is to receive and treat people needing medical treatment or suffering from a disease; and

(b)

includes all clinics, dispensaries, offices, outpatient departments, services, and undertakings, maintained in connection with, or incidental to, such an institution

income year means an income year as defined in section YA 1 of the Income Tax Act 2007

inform, for a mode of communication, has the meaning set out in section 14B of the Tax Administration Act 1994

insurance means insurance or guarantee against loss, damage, injury, or risk of any kind whatever, whether pursuant to any contract or any enactment; and includes reinsurance; and contract of insurance includes a policy of insurance, an insurance cover, and a renewal of a contract of insurance:

provided that nothing in this definition shall apply to any insurance specified in section 3

invoice means a document notifying an obligation to make payment

issuing member means the member responsible under section 55 or 55B for issuing the tax invoice, credit note, or debit note for each supply made by a member of a GST group or supplier group

land, in the zero-rating of land rules,—

(a)

includes—

(i)

an estate or interest in land:

(ii)

a right that gives rise to an interest in land:

(iii)

an option to acquire land or an estate or interest in land:

(iv)

a share in the share capital of a flat or office owning company to which subpart 6 of Part 3 of the Land Transfer Act 2017 applies:

(b)

does not include—

(i)

a mortgage:

(ii)

a lease of a dwelling:

(iii)

[Repealed]

late payment penalty has the meaning given to it in section 3(1) of the Tax Administration Act 1994

licence to occupy means the right to exclusive personal occupancy

local authority—

(a)

means a local authority within the meaning of the Local Government Act 2002; and

(b)

includes—

(i)

the administering body within the meaning of the Reserves Act 1977 of any reserve classified under that Act as a scenic reserve or a recreation reserve:

(ii)

an airport authority (other than an airport company) within the meaning of the Airport Authorities Act 1966:

(iii)

the Aotea Centre Board of Management established by the Auckland Aotea Centre Empowering Act 1985:

(iv)

the Canterbury Museum Trust Board continued in existence by section 5(1) of the Canterbury Museum Trust Board Act 1993:

(v)

the Council of the Auckland Institute and Museum constituted under the Charitable Trusts Act 1957:

(vi)

the Otago Museum Trust Board continued in existence by section 5(1) of the Otago Museum Trust Board Act 1996:

(vii)

Auckland Transport (as established by section 38 of the Local Government (Auckland Council) Act 2009):

(viii)

Auckland Regional Holdings established by section 18 of the Local Government (Auckland) Amendment Act 2004:

(ix)

the Auckland Council Independent Maori Statutory Board established by section 81 of the Local Government (Auckland Council) Act 2009

loyalty programme means a consumer incentive scheme under which a customer can obtain loyalty points that are redeemable for goods or services

marketplace means—

(a)

an electronic marketplace:

(b)

a marketplace approved under section 60D as a supplier of distantly taxable goods or remote services

member includes a partner, a joint venturer, a trustee, or a member of an unincorporated body

member supply means a supply by a member of a GST group or supplier group

mobile roaming services—

(a)

means mobile telecommunications services supplied to the mobile device of a person who is outside the country of their usual mobile network as determined by the country code of the subscriber identity module for the person’s mobile device; and

(b)

includes services supplied to enable a person to receive mobile telecommunications services when the person is outside the country of their usual mobile network determined as described in paragraph (a); and

(c)

are services that are classified as—

(i)

inbound mobile roaming services when the services are received by a person who is in New Zealand and whose usual mobile network determined as described in paragraph (a) is outside New Zealand; or

(ii)

notice, for an item of information, means the form or manner in which the item is notified or communicated, as described in section 14C or 14D of the Tax Administration Act 1994, as appropriate

notify—

(a)

means to give notice; and

(b)

for a mode of communication, has the meaning set out in section 14C or 14D of the Tax Administration Act 1994, as appropriate

Office of Parliament means the administrative and support services and staff of—

(a)

the Parliamentary Commissioner for the Environment:

(b)

[Repealed]

(c)

the Ombudsmen:

(d)

the Controller and Auditor-General

officer of the department means an officer of the department as defined in the Tax Administration Act 1994

output tax, in relation to any registered person, means the tax charged pursuant to section 8(1) in respect of the supply of goods and services made by that person

partnership and partner have the meanings set out in the Partnership Law Act 2019

percentage actual use is defined in section 21G(1)(a) for the purposes of sections 8(4B)(b), 9(2)(h), 20(3JC), 20G, and 21 to 21H

percentage difference is defined in section 21G(1)(c) for the purposes of sections 20G and 21 to 21H

percentage intended use is defined in section 21G(1)(b) for the purposes of sections 8(4B)(b), 20(3H), 20(3JC), 20G, and 21 to 21H

person includes a company, an unincorporated body of persons, a public authority, and a local authority

Pharmac means the Pharmaceutical Management Agency established by section 46 of the New Zealand Public Health and Disability Act 2000

Pharmac agreement means an agreement to which Pharmac is a party and under which Pharmac agrees to list a pharmaceutical on the pharmaceutical schedule as defined in section 6 of the New Zealand Public Health and Disability Act 2000

pharmaceutical means a pharmaceutical as defined in section 6 of the New Zealand Public Health and Disability Act 2000

previous actual use has the meaning given in section 21C(b)(i)

principal place of residence, in the definition of dwelling means a place that a person occupies as their main residence for the period to which the agreement for the supply of accommodation relates

prize competition means a scheme or competition—

(a)

for which direct or indirect consideration is paid to a person for conducting the scheme or competition; and

(b)

that distributes prizes of money or in which participants seek to win money; and

(c)

for which the result is determined—

(i)

by the performance of the participant of an activity of a kind that may be performed more readily by a participant possessing or exercising some knowledge or skill; or

(ii)

partly by chance and partly by the performance of an activity as described in subparagraph (i), whether or not it may also be performed successfully by chance:

provisional tax means provisional tax as defined in section YA 1 of the Income Tax Act 2007

public authority means all instruments of the Crown in respect of the Government of New Zealand, whether departments, Crown entities, State enterprises, or other instruments; and includes offices of Parliament, the Parliamentary Service, the Office of the Clerk of the House of Representatives, public purpose Crown-controlled companies, and the New Zealand Lottery Grants Board; but does not include the Governor-General, members of the Executive Council, Ministers of the Crown, or members of Parliament

public purpose Crown-controlled company has the same meaning as in section YA 1 of the Income Tax Act 2007

quarter means a quarter as defined in section YA 1 of the Income Tax Act 2007

Railways assets and liabilities, Railways assets, and Railways liabilities have the same meaning as in section EZ 68 of the Income Tax Act 2007

Railways vesting has the same meaning as in section EZ 68 of the Income Tax Act 2007

recipient, in relation to any supply of goods and services, means the person receiving the supply

redeliverer, for a supply of goods and a recipient of the supply, means a person who, under an arrangement with the recipient, delivers the goods from outside New Zealand at a place in New Zealand or arranges or assists the delivery of the goods from outside New Zealand at a place in New Zealand and—

(a)

(ii)

ending on the day immediately following the relevant day that triggers non-residence under section YD 1(5) of that Act

residential establishment means any commercial dwelling in which not less than 70% of the individuals to whom domestic goods and services are supplied reside, or are expected to reside, for a period of, or in excess of, 4 weeks; and also includes any hospital to the extent that it is used to provide domestic goods and services in a way similar to any such residential establishment

return means any return required to be furnished under Part 3

return of income means a return of income required under section 33 of the Tax Administration Act 1994

revenue from the Crown means any amount brought to charge from the Crown (not being revenue received from any other public authority) by any public authority for the supply of outputs (within the meaning of the Public Finance Act 1989) by that public authority; but does not include—

(a)

any goods and services tax, chargeable in accordance with the provisions of this Act, on the supply of outputs by that public authority:

(b)

any revenue collected by that public authority as agent on behalf of the Crown

secondhand goods, does not include—

(a)

secondhand goods consisting of any fine metal; or

(b)

secondhand goods which are—

(i)

manufactured or made from, or to the extent to which they are manufactured or made from, gold, silver, platinum, or other substance, that would be fine metal if it were of the required fineness; and

(ii)

of a kind not manufactured for sale to the public; or

(c)

livestock

service occupancy agreement means a licence whereby a person occupies a dwelling for no consideration

services means anything which is not goods or money or cryptocurrency

shortfall penalty has the meaning given to it in section 3(1) of the Tax Administration Act 1994

supplier, in relation to a supply of goods and services, means—

(a)

for a supply to which paragraph (b) does not apply, the person who makes the supply; or

(b)

for a supply that is subject to a provision in Part 9, the person who is treated by the provision as making the supply

supplier group means a group of 2 or more registered persons who enter an agreement meeting the requirements of section 55B that 1 supplier is to issue the tax invoice, credit note, or debit note for each supply of goods and services by 1 or more members of the group

tax means goods and services tax

tax file number has the meaning assigned to that term by section YA 1 of the Income Tax Act 2007

tax fraction means the fraction calculated in accordance with the following formula:

a ÷ (100 + a)

where—

a: is the rate of tax specified in section 8(1)

tax invoice means a document provided pursuant to sections 24 and 24BA

tax payable means an amount of tax calculated in accordance with section 19C and section 20; and includes—

(a)

any amount referred to in section 17(2) or section 51B:

(b)

any late payment penalty or shortfall penalty:

(c)

any amount of tax refundable by the Commissioner pursuant to section 19C or section 20; and, for the purposes of section 57, includes interest payable under Part 7 of the Tax Administration Act 1994

tax year means a tax year as defined in section YA 1 of the Income Tax Act 2007

taxable period, in relation to a registered person, means a taxable period determined under sections 15 to 15E

taxable supply means a supply of goods and services in New Zealand that is charged with tax under section 8 and includes a supply that section 11, 11A, 11AB or 11B requires to be charged at the rate of 0%

taxable use, for goods or services, means use of the goods or services for making taxable supplies

Taxation Review Authority or Authority means a Taxation Review Authority established under the Taxation Review Authorities Act 1994

telecommunications services means the transmission, emission or reception, and the transfer or assignment of the right to use capacity for the transmission, emission or reception, of signals, writing, images, sounds or information of any kind by wire, cable, radio, optical or other electromagnetic system, or by a similar technical system, and includes access to global information networks but does not include the content of the telecommunication

telecommunications supplier means a person whose principal activity is the supply of telecommunications services

trustee includes an executor and administrator; and also includes Public Trust and the Māori Trustee

unconditional gift means a payment voluntarily made to any non-profit body for the carrying on or carrying out of the purposes of that non-profit body and in respect of which no identifiable direct valuable benefit arises or may arise in the form of a supply of goods and services to the person making that payment, or any other person where that person and that other person are associated persons; but does not include any payment made by the Crown or a public authority

underlying supplier, for a supply of goods or services that is supplied by the operator of a marketplace under section 60C or 60D, means the person who would be the supplier of the goods and services in the absence of sections 60C and 60D

unincorporated body means an unincorporated body of persons, including a partnership, a joint venture, and the trustees of a trust

unit title body corporate means a body corporate under the Unit Titles Act 2010, other than a body corporate of a retirement village registered under the Retirement Villages Act 2003

warranty, in respect of goods supplied, means an undertaking given under the supply agreement to remedy any defect in the goods that appears during a certain period of time after the goods are supplied or before a certain level of usage is reached

working day means any day of the week other than—

(a)

a Saturday, a Sunday, Waitangi Day, Good Friday, Easter Monday, Anzac Day, the Sovereign’s birthday, Te Rā Aro ki a Matariki/Matariki Observance Day, and Labour Day; and

(ab)

if Waitangi Day or Anzac Day falls on a Saturday or a Sunday, the following Monday; and

(b)

a day in the period commencing with 25 December in any year and ending with 15 January in the following year

zero-rating of land rules means sections 5(24), 11(1)(mb), 60B(6), 75(3B), and 78F.

(2)

For the purposes of this Act, a reference to goods and services includes a reference to goods or services.

(3)

An order under the definition of fine metal, paragraph (d), in subsection (1) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

See secondary legislation made under this Act (if published on this website)

Legislation Act 2019 requirements for secondary legislation made under this section
Publication	PCO must publish it on the legislation website and notify it in the Gazette	LA19 s 69(1)(c)
Presentation	The Minister must present it to the House of Representatives	LA19 s 114, Sch 1 cl 32(1)(a)
Disallowance	It may be disallowed by the House of Representatives	LA19 ss 115, 116
This note is not part of the Act.

Section 2(1): amended, on 1 October 2000 (applying on and after 10 October 1996), by section 82(2) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 2(1) additional tax: repealed, on 26 July 1996 (applying with respect to tax obligations, liabilities, and rights that are to be performed under or arise in relation to supplies made in respect of taxable periods commencing on or after 1 April 1997 (unless necessary for the enforcement of other provisions in this Act)), by section 2(1) of the Goods and Services Tax Amendment Act 1996 (1996 No 59).

Section 2(1) adjustment period: inserted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 4(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 2(1) adjustment period: amended, on 1 October 2016, by section 52(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 2(1) apply: inserted, on 2 June 2016, by section 182 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 2(1) ask: inserted, on 2 June 2016, by section 182 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 2(1) associated persons: repealed, on 10 October 2000 (applying on 10 October 2000), by section 82(3) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 2(1) associated supply: inserted, on 3 April 2006, by section 283(2) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 2(1) balance date: substituted, on 1 October 2007, by section 283(4) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 2(1) challenge: inserted, on 1 October 1996 (applying on and after 1 October 1996 (unless necessary for the enforcement of other provisions in this Act)), by section 2(2) of the Goods and Services Tax Amendment Act 1996 (1996 No 59).

Section 2(1) commercial dwelling: substituted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 4(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 2(1) commercial dwelling paragraph (b)(ii): replaced (with effect on 1 April 2011 and applying for the 2011–12 and later income years, but not applying to a person in relation to a tax position taken by them in the period from 1 April 2011 to 31 March 2015 and relating to tax treatment of a residential unit in a rest home or retirement village and relying on the definitions of commercial dwelling and dwelling as they were before the amendments made by section 185(1) and (2)), on 30 June 2014, by section 185(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section 2(1) Commissioner: amended, on 1 April 1995 (applying with respect to the tax on income derived in 1995–96 and subsequent income years), by section YB 1 of the Income Tax Act 1994 (1994 No 164).

Section 2(1) common property: inserted (with effect on 26 February 2015), on 24 February 2016, by section 273(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section 2(1) company: amended, on 1 April 2008, by section 30 of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).

Section 2(1) consideration: amended, on 1 October 1988 (applying with respect to payments made on or after 1 October 1988), by section 2(1) of the Goods and Services Tax Amendment Act (No 3) 1988 (1988 No 125).

Section 2(1) consideration: amended (with effect on 3 December 1985), on 8 August 1986, by section 2(4) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 2(1) content: inserted, on 1 July 2003, by section 152(2) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).

Section 2(1) credit note: inserted, on 13 March 1992, by section 2 of the Goods and Services Tax Amendment Act 1992 (1992 No 2).

Section 2(1) cryptoasset: inserted (with effect on 1 January 2009), on 30 March 2022, by section 5(2)(a) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 2(1) cryptocurrency: inserted (with effect on 1 January 2009), on 30 March 2022, by section 5(2)(b) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 2(1) dealer in fine metal: inserted (with effect on 3 December 1985), on 8 August 1986, by section 2(9) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 2(1) debit note: inserted, on 13 March 1992, by section 2 of the Goods and Services Tax Amendment Act 1992 (1992 No 2).

Section 2(1) District Commissioner: repealed (with effect on 1 April 1995), on 2 September 1996, by section 51(1) of the Taxation (Remedial Provisions) Act 1996 (1996 No 159).

Section 2(1) document: substituted, on 29 August 2011, by section 235(1)(a) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section 2(1) due date: substituted, on 10 October 2000 (applying on and after 10 October 2000), by section 82(4) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 2(1) dwelling: substituted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 4(4) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 2(1) dwelling paragraph (b)(ii): amended (with effect on 1 April 2011), on 30 June 2014, by section 185(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section 2(1) dwelling paragraph (b)(iii): inserted (with effect on 1 April 2011 and applying for the 2011–12 and later income years, but not applying to a person in relation to a tax position taken by them in the period from 1 April 2011 to 31 March 2015 and relating to tax treatment of a residential unit in a rest home or retirement village and relying on the definitions of commercial dwelling and dwelling as they were before the amendments made by section 185(1) and (2)), on 30 June 2014, by section 185(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section 2(1) electronic marketplace: inserted, on 1 October 2016, by section 52(3) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 2(1) electronic marketplace paragraph (a): amended, on 1 December 2019, by section 5(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 2(1) emissions unit: substituted (with effect on 1 January 2009), on 6 October 2009, by section 704(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 2(1) entry value threshold: inserted, on 1 December 2019, by section 5(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 2(1) estimated customs value: inserted, on 1 December 2019, by section 5(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 2(1) fine metal: inserted (with effect on 3 December 1985), on 8 August 1986, by section 2(9) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 2(1) fine metal paragraph (d): amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Section 2(1) going concern: inserted, on 10 April 1995 (applying with respect to supplies made pursuant to a contract or agreement entered into on or after 10 April 1995), by section 2(1) of the Goods and Services Tax Amendment Act 1995 (1995 No 22).

Section 2(1) goods: amended (with effect on 1 January 2009), on 30 March 2022, by section 5(3) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 2(1) goods: amended, on 1 October 2016, by section 52(4) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 2(1) goods: amended, on 1 January 2005, by section 140(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 2(1) GST group: inserted, on 30 March 2022, by section 5(1)(a) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 2(1) hire purchase agreement: inserted, on 1 April 2005, by section 139 of the Credit Contracts and Consumer Finance Act 2003 (2003 No 52).

Section 2(1) hire purchase agreement: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 2(1) hospital: substituted, on 1 October 2002, by section 58(1) of the Health and Disability Services (Safety) Act 2001 (2001 No 93).

Section 2(1) income year: inserted, on 1 October 2007, by section 283(5) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 2(1) income year: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 2(1) inform: inserted, on 2 June 2016, by section 182 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 2(1) input tax: repealed, on 10 October 2000 (applying on 10 October 2000), by section 82(3) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 2(1) issuing member: inserted, on 30 March 2022, by section 5(1)(b) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 2(1) land: inserted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 4(5) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 2(1) land: amended (with effect on 1 April 2011), on 2 November 2012, by section 207(2)(a) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 2(1) land paragraph (a)(iv): amended, on 12 November 2018, by section 250 of the Land Transfer Act 2017 (2017 No 30).

Section 2(1) land paragraph (b)(iii): repealed (with effect on 1 April 2011), on 2 November 2012, by section 207(2)(b) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 2(1) late payment penalty: inserted, on 26 July 1996 (applying with respect to tax obligations, liabilities, and rights that are to be performed under or arise in relation to supplies made in respect of taxable periods commencing on or after 1 April 1997 (unless necessary for the enforcement of other provisions in this Act)), by section 2(3) of the Goods and Services Tax Amendment Act 1996 (1996 No 59).

Section 2(1) licence to occupy: inserted, on 1 August 1990 (applying to supplies made on or after 1 August 1990), by section 2(2) of the Goods and Services Tax Amendment Act 1990 (1990 No 64).

Section 2(1) local authority: substituted, on 1 July 2003, by section 262 of the Local Government Act 2002 (2002 No 84).

Section 2(1) local authority paragraph (b)(vii): substituted, on 1 November 2010, by section 113(1) of the Local Government (Auckland Transitional Provisions) Act 2010 (2010 No 37).

Section 2(1) local authority paragraph (b)(viii): added, on 1 July 2004, by section 47 of the Local Government (Auckland) Amendment Act 2004 (2004 No 57).

Section 2(1) local authority paragraph (b)(viii): amended (with effect on 1 November 2010), on 2 November 2012, by section 207(3) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 2(1) local authority paragraph (b)(ix): inserted (with effect on 1 November 2010), on 2 November 2012, by section 207(3) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 2(1) loyalty programme: inserted, on 6 October 2009, by section 704(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 2(1) marketplace: inserted, on 1 October 2016, by section 52(5) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 2(1) marketplace paragraph (b): amended, on 1 December 2019, by section 5(3) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 2(1) member: inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 82(5) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 2(1) member supply: inserted, on 30 March 2022, by section 5(1)(c) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 2(1) mobile roaming services: inserted, on 1 April 2022, by section 182 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).

Section 2(1) name: inserted, on 13 March 1992, by section 2 of the Goods and Services Tax Amendment Act 1992 (1992 No 2).

Section 2(1) new fine metal: inserted (with effect on 3 December 1985), on 8 August 1986, by section 2(9) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 2(1) New Zealand: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 2(1) New Zealand unit: repealed (with effect on 1 January 2009), on 6 October 2009, by section 704(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 2(1) non-fungible token: inserted (with effect on 1 January 2009), on 30 March 2022, by section 5(2)(c) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 2(1) non-profit body paragraph (b): amended (with effect on 1 July 1994), on 14 September 1994, by section 2(b) of the Goods and Services Tax Amendment Act 1994 (1994 No 77).

Section 2(1) non-resident: inserted, on 25 November 2003, by section 140(3) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 2(1) non-taxable use: inserted, on 30 March 2017, by section 345(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 2(1) notice: inserted, on 2 June 2016, by section 182 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 2(1) notify: inserted, on 2 June 2016, by section 182 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 2(1) Office of Parliament: inserted, on 1 July 1991, by section 2(2) of the Goods and Services Tax Amendment Act 1991 (1991 No 11).

Section 2(1) Office of Parliament paragraph (b): repealed, on 1 July 1993, by section 129(1) of the Privacy Act 1993 (1993 No 28).

Section 2(1) officer of the department: inserted (with effect on 1 April 1995), on 2 September 1996, by section 51(2) of the Taxation (Remedial Provisions) Act 1996 (1996 No 159).

Section 2(1) partnership and partner: inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 82(6) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 2(1) partnership and partner: amended, on 21 April 2020, by section 86 of the Partnership Law Act 2019 (2019 No 53).

Section 2(1) penal tax: repealed, on 26 July 1996 (applying with respect to tax obligations, liabilities, and rights that are to be performed under or arise in relation to supplies made in respect of taxable periods commencing on or after 1 April 1997 (unless necessary for the enforcement of other provisions in this Act)), by section 2(4) of the Goods and Services Tax Amendment Act 1996 (1996 No 59).

Section 2(1) percentage actual use: inserted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 4(6) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 2(1) percentage actual use: amended, on 1 October 2016, by section 52(6) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 2(1) percentage difference: inserted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 4(6) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 2(1) percentage difference: amended, on 1 October 2016, by section 52(7) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 2(1) percentage intended use: inserted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 4(6) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 2(1) percentage intended use: amended, on 1 October 2016, by section 52(8) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 2(1) Pharmac: replaced, on 30 March 2022, by section 5(1)(d) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 2(1) Pharmac agreement: replaced, on 30 March 2022, by section 5(1)(e) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 2(1) pharmaceutical: replaced, on 30 March 2022, by section 5(1)(f) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 2(1) previous actual use: inserted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 4(6) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 2(1) principal place of residence: inserted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 4(7) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 2(1) principal place of residence: amended (with effect from 1 April 2011), on 29 August 2011, by section 235(1)(c) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section 2(1) prize competition: inserted, on 17 July 2013, by section 120(1) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 2(1) provisional tax: inserted, on 1 October 2007, by section 283(6) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 2(1) provisional tax: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 2(1) public authority: amended, on 18 March 2019, by section 295(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section 2(1) public authority: amended (with effect in relation to the Parliamentary Service on 1 October 1986 and in relation to the Office of the Clerk of the House of Representatives on 1 August 1988), on 6 October 2009, by section 704(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 2(1) public authority: amended, on 10 April 1995, by section 2(2)(a) of the Goods and Services Tax Amendment Act 1995 (1995 No 22).

Section 2(1) public purpose Crown-controlled company: inserted, on 18 March 2019, by section 295(3) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section 2(1) quarter: inserted, on 1 December 2019, by section 5(4) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 2(1) Railways assets and liabilities, Railways assets, and Railways liabilities: inserted (with effect on 31 December 2012), on 17 July 2013, by section 120(2) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 2(1) Railways vesting: inserted (with effect on 31 December 2012), on 17 July 2013, by section 120(3) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 2(1) redeliverer: inserted, on 1 December 2019, by section 5(5) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 2(1) refiner of fine metal: inserted (with effect on 3 December 1985), on 8 August 1986, by section 2(9) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 2(1) regional fuel tax: inserted, on 27 June 2018, by section 7(2) of the Land Transport Management (Regional Fuel Tax) Amendment Act 2018 (2018 No 15).

Section 2(1) remote services: inserted, on 1 October 2016, by section 52(9) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 2(1) request: inserted, on 2 June 2016, by section 182 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 2(1) resident: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 2(1) resident proviso: substituted (with effect on 3 December 1985), on 8 August 1986, by section 2(6) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 2(1) resident proviso: amended, on 21 December 2004, by section 144(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).

Section 2(1) resident proviso paragraph (b): substituted, on 10 October 2000 (applying on and after 10 October 2000), by section 82(7) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 2(1) resident proviso paragraph (c): inserted, on 30 June 2014, by section 185(3) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section 2(1) residential establishment: inserted (with effect on 3 December 1985), on 8 August 1986, by section 2(9) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 2(1) return of income: inserted, on 1 October 2007, by section 283(7) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 2(1) revenue from the Crown: substituted (with effect on 1 July 1989), on 19 December 1989 (applying to supplies made on or after 1 July 1989), by section 2(1) of the Goods and Services Tax Amendment Act (No 2) 1989 (1989 No 152).

Section 2(1) revenue from the Crown: amended, on 10 April 1995, by section 2(2)(b) of the Goods and Services Tax Amendment Act 1995 (1995 No 22).

Section 2(1) secondhand goods: substituted, on 24 March 1988 (applying to supplies made on or after 24 March 1988), by section 2(1) of the Goods and Services Tax Amendment Act 1988 (1988 No 7).

Section 2(1) secondhand goods paragraph (b): replaced, on 30 March 2017, by section 345(3) (and see section 345(5) and (6)) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 2(1) secondhand goods paragraph (c): added, on 22 March 1989 (applying to supplies made on or after 22 March 1989), by section 2(4) of the Goods and Services Tax Amendment Act 1989 (1989 No 8).

Section 2(1) service occupancy agreement: inserted, on 19 December 1989, by section 2(2) of the Goods and Services Tax Amendment Act (No 2) 1989 (1989 No 152).

Section 2(1) services: replaced (with effect on 1 January 2009), on 30 March 2022, by section 5(2)(d) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 2(1) shortfall penalty: inserted, on 26 July 1996 (applying with respect to tax obligations, liabilities, and rights that are to be performed under or arise in relation to supplies made in respect of taxable periods commencing on or after 1 April 1997 (unless necessary for the enforcement of other provisions in this Act)), by section 2(5) of the Goods and Services Tax Amendment Act 1996 (1996 No 59).

Section 2(1) supplier: replaced, on 30 March 2022, by section 5(1)(g) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 2(1) supplier group: inserted, on 30 March 2022, by section 5(1)(h) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 2(1) tax file number: inserted, on 23 September 1997, by section 109 of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).

Section 2(1) tax file number: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 2(1) tax invoice: amended, on 19 December 2007, by section 271(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 2(1) tax payable: amended, on 1 April 1991, by section 2(4) of the Goods and Services Tax Amendment Act 1991 (1991 No 11).

Section 2(1) tax payable paragraph (a): amended, on 21 December 2004 (applying for taxable periods beginning on or after 1 April 2005), by section 144(2) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).

Section 2(1) tax payable paragraph (b): substituted, on 26 July 1996 (applying with respect to tax obligations, liabilities, and rights that are to be performed under or arise in relation to supplies made in respect of taxable periods commencing on or after 1 April 1997 (unless necessary for the enforcement of other provisions in this Act)), by section 2(6) of the Goods and Services Tax Amendment Act 1996 (1996 No 59).

Section 2(1) tax payable paragraph (c): added (with effect on 3 December 1985), on 8 August 1986, by section 2(8) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 2(1) tax payable paragraph (c): amended, on 26 July 1996 (applying with respect to tax obligations, liabilities, and rights that are to be performed under or arise in relation to supplies made in respect of taxable periods commencing on or after 1 April 1997 (unless necessary for the enforcement of other provisions in this Act)), by section 2(7) of the Goods and Services Tax Amendment Act 1996 (1996 No 59).

Section 2(1) tax payable paragraph (c): amended, on 1 April 1991, by section 2(4) of the Goods and Services Tax Amendment Act 1991 (1991 No 11).

Section 2(1) tax year: inserted, on 1 October 2007, by section 283(8) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 2(1) tax year: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 2(1) taxable period: amended, on 1 October 2007, by section 283(9) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 2(1) taxable supply: substituted, on 10 October 2000 (applying on and after 10 October 2000), by section 82(8) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 2(1) taxable supply: amended, on 1 July 2003, by section 152(3) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).

Section 2(1) taxable use: inserted, on 30 March 2017, by section 345(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 2(1) Taxation Review Authority: amended, on 1 April 1995 (applying with respect to the tax on income derived in 1995–96 and subsequent income years), by section YB 1 of the Income Tax Act 1994 (1994 No 164).

Section 2(1) telecommunications services: inserted, on 1 July 2003, by section 152(4) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).

Section 2(1) telecommunications supplier: inserted, on 1 July 2003, by section 152(4) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).

Section 2(1) trustee: amended, on 1 July 2009, pursuant to section 30(2)(a) of the Māori Trustee Amendment Act 2009 (2009 No 12).

Section 2(1) trustee: amended, on 1 March 2002, by section 170(1) of the Public Trust Act 2001 (2001 No 100).

Section 2(1) unconditional gift: inserted (with effect on 3 December 1985), on 8 August 1986, by section 2(9) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 2(1) unconditional gift: amended (with effect on 3 December 1985), on 22 June 1987 (applying to supplies made on or after 3 December 1985), by section 2(1) of the Goods and Services Tax Amendment Act 1987 (1987 No 103).

Section 2(1) underlying supplier: inserted, on 1 December 2019, by section 5(6) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 2(1) unincorporated body: inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 82(9) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 2(1) unit title body corporate: inserted (with effect on 1 October 1986), on 24 February 2016, by section 273(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section 2(1) unit title body corporate: replaced (with effect on 20 June 2011), on 24 February 2016, by section 273(3) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section 2(1) warranty: inserted, on 17 October 2002 (applying on and after 1 August 2002), by section 96(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).

Section 2(1) working day paragraph (a): replaced, on 12 April 2022, by wehenga 7 o Te Ture mō te Hararei Tūmatanui o te Kāhui o Matariki 2022/section 7 of the Te Kāhui o Matariki Public Holiday Act 2022 (2022 No 14).

Section 2(1) working day paragraph (ab): inserted, on 1 January 2014, by section 8 of the Holidays (Full Recognition of Waitangi Day and ANZAC Day) Amendment Act 2013 (2013 No 19).

Section 2(1) zero-rating of land rules: inserted (with effect on 1 April 2011), on 2 November 2012, by section 207(4) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 2(3): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

2A Meaning of associated persons

(4)

For the purpose of subsection (1)(a) and (1)(b), if a person (person A) and another person (person B) are associated persons under any of subsection (1)(bb) to (1)(i), person A is treated as holding anything held by person B.

(5)

[Repealed]

(6)

For the purpose of subsection (1)(c)—

(a)

persons are connected by blood relationship if they are within the second degree of relationship:

(b)

persons are connected by marriage, civil union or de facto relationship if one is in a marriage, civil union or de facto relationship with the other or with a person who is connected by blood relationship to the other:

(c)

persons are connected by adoption if one has been adopted as the child of the other or as a child of a person who is within the first degree of relationship to the other.

(7)

For the purpose of subsection (1)(g) and (1)(h), settlor has the meaning set out in section YA 1 of the Income Tax Act 2007.

(8)

Subsection (1)(i) does not apply if 2 persons (persons A and B) are both associated with a third person (person C) under subsection (1)(c).

Section 2A: inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 83(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 2A(1)(bb): inserted, on 1 January 2005, by section 141 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 2A(1)(c): substituted, on 26 April 2005, by section 3(1) of the Goods and Services Tax Amendment Act 2005 (2005 No 9).

Section 2A(1)(c)(iv): repealed, on 18 December 2006, by section 211(a) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).

Section 2A(1)(cb): inserted, on 18 December 2006, by section 211(b) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).

Section 2A(1)(db): inserted (with effect on 30 August 2022), on 31 March 2023, by section 122(1) (and see section 122(2) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).

Section 2A(1)(e): repealed, on 26 June 2019, by section 6(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 2A(1)(f): substituted, on 8 December 2009, by section 145(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section 2A(1)(g): substituted, on 27 March 2001 (applying on and after 10 October 2000), by section 61(1) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).

Section 2A(1)(h): substituted, on 8 December 2009, by section 145(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section 2A(1)(hb): inserted, on 29 March 2018, by section 398 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Section 2A(1)(i)(i): amended, on 26 June 2019, by section 6(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 2A(1)(i)(ii): amended, on 26 June 2019, by section 6(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 2A(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 2A(3)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 2A(3)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).

Section 2A(3)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 2A(3)(c): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 2A(4): amended, on 18 March 2019, by section 296 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section 2A(5): repealed, on 26 April 2005, by section 3(1) of the Goods and Services Tax Amendment Act 2005 (2005 No 9).

Section 2A(6): amended, on 26 April 2005, by section 3(1) of the Goods and Services Tax Amendment Act 2005 (2005 No 9).

Section 2A(6)(b): substituted, on 1 April 2007, by section 3(2) of the Goods and Services Tax Amendment Act 2005 (2005 No 9).

Section 2A(7): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

3 Meaning of term financial services

(1)

For the purposes of this Act, the term financial services means any 1 or more of the following activities:

(a)

the exchange of currency (whether effected by the exchange of bank notes or coin, by crediting or debiting accounts, or otherwise):

(b)

the issue, payment, collection, or transfer of ownership of a cheque or letter of credit:

(c)

the issue, allotment, drawing, acceptance, endorsement, or transfer of ownership of a debt security:

(d)

the issue, allotment, or transfer of ownership of an equity security or a participatory security:

(e)

underwriting or sub-underwriting the issue of an equity security, debt security, or participatory security:

(f)

the provision of credit under a credit contract:

(g)

the renewal or variation of a debt security, equity security, participatory security, or credit contract:

(h)

the provision, taking, variation, or release of a guarantee, indemnity, security, or bond in respect of the performance of obligations under a cheque, credit contract, equity security, debt security, or participatory security, or in respect of the activities specified in paragraphs (b) to (g):

(i)

the provision, or transfer of ownership, of a life insurance contract or the provision of re-insurance in respect of any such contract:

(j)

the provision, or transfer of ownership, of an interest in a retirement scheme, or the management of a retirement scheme:

(k)

the provision or assignment of a futures contract through a defined market or at arm’s length if—

(i)

the contract does not provide for the delivery of a commodity; or

(ii)

the contract provides for the delivery of a commodity and the supply of the commodity is an exempt supply; or

(iii)

the contract provides for the delivery of money or cryptocurrency:

(kaa)

the provision or transfer of ownership of a financial option:

(kaab)

the provision or transfer of ownership of an option over cryptocurrency:

(ka)

the payment or collection of any amount of interest, principal, dividend, or other amount whatever in respect of any debt security, equity security, participatory security, credit contract, contract of life insurance, retirement scheme, financial option, or futures contract:

(l)

agreeing to do, or arranging, any of the activities specified in paragraphs (a) to (ka), other than advising thereon:

(lb)

arranging the provision, or transfer, of ownership of cryptocurrency:

(m)

the investment in an entity, if—

(i)

the investment is in an equity security equal to or greater than 10% of all equity securities issued by the entity or in a participatory security equal to or greater than 10% of all participatory securities issued by the entity; and

(ii)

the investment allows the investor, or a person acting on behalf of the investor, to influence the management of the business of the entity:

(n)

the evaluation by an investor of an investment referred to in paragraph (m) in an entity and the planning or acting by the investor to influence the management of an entity for the principal purpose of preserving or increasing the value of such an investment.

(2)

For the purposes of this section—

cheque means a cheque as defined in the Bills of Exchange Act 1908, an instrument specified in section 5(2) of the Cheques Act 1960, a postal note, a money order, a traveller’s cheque, or any order or authorisation (whether in writing, by electronic means, or otherwise) to a financial institution to credit or debit any account

contributory scheme—

(a)

means any scheme or arrangement that, in substance and irrespective of the form of the scheme or arrangement, involves the investment of money where—

(i)

the investor acquires or may acquire an interest in or right in respect of property; and

(ii)

that interest or right will or may be, under the terms of investment, used or exercised in conjunction with any other interest in or right in respect of property acquired in similar circumstances, whether at the same time or not; but

(b)

does not include a scheme or arrangement described in paragraph (a) that has 5 or fewer investors, provided that neither the manager of the scheme nor any associated person of the manager is the manager of another such scheme or arrangement

credit contract means a credit contract as defined in section 3 of the Credit Contracts Act 1981 immediately before the repeal of that Act

currency means any banknote or other currency of any country, other than when used as a collector’s piece, investment article, item of numismatic interest, or otherwise than as a medium of exchange

debt security means any interest in or right to be paid money that is, or is to be, owing by any person; but does not include a cheque

equity security means any interest in or right to a share in the capital of a body corporate

general accounting and record package services, in relation to financial services, includes—

(a)

Section 3(1)(kaa): replaced, on 30 March 2017, by section 346(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 3(1)(kaab): inserted (with effect on 1 January 2009), on 30 March 2022, by section 6(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

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

Section 3(1)(ka): amended, on 30 March 2017, by section 346(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 3(1)(l): amended, on 18 December 2006, by section 212 of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).

Section 3(1)(l): amended (with effect on 3 December 1985), on 8 August 1986, by section 3(2) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 3(1)(lb): inserted (with effect on 1 January 2009), on 30 March 2022, by section 6(3) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 3(1)(m): added, on 18 December 2006, by section 212 of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).

Section 3(1)(n): added, on 18 December 2006, by section 212 of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).

Section 3(2) contributory scheme: inserted, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 3(2) credit contract: substituted (with effect on 1 April 2005), on 3 April 2006, by section 284(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 3(2) general accounting and record package services: inserted, on 19 December 1989 (applying to supplies made on or after 19 December 1989), by section 3(1) of the Goods and Services Tax Amendment Act (No 2) 1989 (1989 No 152).

Section 3(2) life insurance contract: substituted, on 8 September 1999 (applying on and after 1 April 1999), by section 78(1) of the Taxation (Remedial Matters) Act 1999 (1999 No 98).

Section 3(2) life insurance contract: amended (with effect on 1 April 2002), on 30 June 2014, by section 186 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section 3(2) life insurance contract: amended, on 1 April 2007, by section 3(2) of the Goods and Services Tax Amendment Act 2005 (2005 No 9).

Section 3(2) participatory security: amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 3(2) retirement scheme: inserted, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 3(2) superannuation scheme: repealed, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 3(3)(b): repealed, on 3 April 2006 (applying for supplies of financial services that are made on or after 3 April 2006), by section 284(2) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 3(3)(c): amended, on 12 November 2018, by section 250 of the Land Transfer Act 2017 (2017 No 30).

Section 3(3)(d): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 3(3B): inserted (with effect on 1 April 2005), on 3 April 2006, by section 284(3) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 3(3C): inserted (with effect on 1 April 2005), on 3 April 2006, by section 284(3) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 3(4): substituted, on 10 October 2000 (applying on and after 10 October 2000), by section 84(2) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 3(5): added, on 19 December 1989 (applying to supplies made on or after 19 December 1989), by section 3(2) of the Goods and Services Tax Amendment Act (No 2) 1989 (1989 No 152).

3A Meaning of input tax

(1)

Input tax, in relation to a registered person, means—

(a)

tax charged under section 8(1) on a supply of goods or services acquired by the person:

(b)

tax levied under section 12(1) on goods entered for home consumption under the Customs and Excise Act 2018 by the person:

(c)

an amount determined under subsection (3) after applying subsection (2).

(2)

in all other cases, the tax fraction of the consideration in money for the supply.

(3B)

Despite subsection (3)(a), if a supply wholly or partly consists of land, and is part of an arrangement involving more than 2 associated parties and more than 1 supply, the amount of input tax for the supply must not be more than the amount accounted for as output tax for all supplies that are part of the arrangement.

(3C)

For a supply of goods or services meeting the requirements of section 21B(1)(a)(i) and (b), when the goods or services have been acquired from an associated person, the amount of input tax must not be more than the amount accounted for as output tax by the supplier of the goods or services.

(4)

[Repealed]

(4A)

[Repealed]

(5)

For the purpose of subsection (3), tax fraction means the tax fraction that applies at the time of supply.

Section 3A: inserted, on 10 October 2000 (applying to supplies made on and after 10 October 2000), by section 85(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 3A(1)(a): substituted, on 1 April 2011, by section 5(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 3A(1)(b): substituted, on 1 April 2011, by section 5(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 3A(1)(b): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 3A(2)(ab): inserted, on 30 March 2022, by section 7(1) (and see section 7(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 3A(2)(b): replaced (with effect on 14 September 2011), on 2 November 2012, by section 208(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 3A(2)(b)(i): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 3A(2)(c): substituted, on 1 April 2011, by section 5(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 3A(3)(a)(i): replaced (with effect on 30 March 2022), on 31 March 2023, by section 123(1) (and see section 123(2) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).

Section 3A(3)(a)(ib): repealed (with effect on 30 March 2022), on 31 March 2023, by section 123(1) (and see section 123(2) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).

Section 3A(3B): inserted, on 1 April 2011, by section 5(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 3A(3C): inserted, on 1 April 2011, by section 5(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 3A(3C): amended (with effect on 1 April 2011), on 2 November 2012, by section 208(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 3A(4): repealed (with effect on 1 April 2011), on 2 November 2012, by section 208(3) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 3A(4A): repealed, on 1 April 2011, by section 5(4) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

4 Meaning of term open market value

(1)

For the purposes of this section—

(a)

the term similar supply, in relation to a supply of goods and services, means any other supply of goods and services that, in respect of the characteristics, quality, quantity, functional components, materials, and reputation of the goods and services first mentioned, is the same as, or closely or substantially resembles, that supply of goods and services:

(b)

the open market value of a supply shall include any goods and services tax charged pursuant to section 8(1) on that supply.

(2)

For the purposes of this Act, the open market value of any supply of goods and services at any date shall be the consideration in money which the supply of those goods and services would generally fetch if supplied in similar circumstances at that date in New Zealand, being a supply freely offered and made between persons who are not associated persons.

(3)

Where the open market value of any supply of goods and services cannot be determined under subsection (2), the open market value shall be the consideration in money which a similar supply would generally fetch if supplied in similar circumstances at that date in New Zealand, being a supply freely offered and made between persons who are not associated persons.

(4)

Where the open market value of any supply of goods and services cannot be determined pursuant to subsection (2) or subsection (3), the open market value shall be determined in accordance with a method approved by the Commissioner which provides a sufficiently objective approximation of the consideration in money which could be obtained for that supply of those goods and services.

(5)

For the purposes of this Act the open market value of any consideration, not being consideration in money, for a supply of goods and services shall be ascertained in the same manner, with any necessary modifications, as the open market value of any supply of goods and services is ascertained pursuant to the foregoing provisions of this section.

Section 4(1)(b): substituted (with effect on 3 December 1985), on 8 August 1986, by section 4 of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 4(3): amended, on 24 March 1988 (applying to supplies made on or after 24 March 1988), by section 3 of the Goods and Services Tax Amendment Act 1988 (1988 No 7).

4B Meaning of distantly taxable goods

(1)

Distantly taxable goods means items of goods that—

(a)

are moveable personal property, other than choses in action; and

(b)

are not alcoholic beverages, or tobacco or tobacco products, that are exempt from regulations made under section 406(1) of the Customs and Excise Act 2018; and

(c)

are supplied by—

(i)

a non-resident, and the goods are outside New Zealand at the time of the supply:

(ii)

a person who is the supplier under section 60C or 60D, as an operator of a marketplace, and the underlying supplier of the goods is a non-resident:

(iii)

a person who is the supplier of the goods under section 60E, as a redeliverer; and

(d)

are delivered at a place in New Zealand and the supplier or an underlying supplier makes, or arranges, or assists, the delivery; and

(e)

each have—

(i)

an estimated customs value under section 10B equal to or less than the entry value threshold:

(ii)

a supplier that has made an election under section 10C that is effective at the time of the supply.

(2)

If distantly taxable goods are part of a supply that also includes items of goods that do not meet the requirements of subsection (1)(a) to (e), the distantly taxable goods are treated as being a supply and the other items are treated as being a separate supply.

Section 4B: inserted, on 1 December 2019, by section 7 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

5 Meaning of term supply

(1)

For the purposes of this Act, the term supply includes all forms of supply.

(2)

For the purposes of this Act, where any goods acquired (whether in terms of a hire purchase agreement or otherwise) or produced by a person (that person being referred to hereafter in this subsection as the first person) are sold, under a power exercisable by another person (that person being referred to hereafter in this subsection as the second person), in or towards the satisfaction of a debt owed by the first person, those goods shall be deemed to be supplied in the course or furtherance of a taxable activity carried on by the first person (being deemed a registered person), unless—

(a)

the supply of those goods would not be a taxable supply if those goods were sold by the first person (notwithstanding that the first person may not be the owner of those goods) and the first person has furnished to the second person a statement in writing stating fully and correctly the reasons why that supply would not be a taxable supply; or

(b)

where the second person has not been notified as described in paragraph (a), that person may determine, in relation to any reasonable information held, that the supply of those goods would not have been a taxable supply if those goods had been sold by the first person (notwithstanding that the first person may not be the owner of those goods).

(3)

For the purposes of this Act, where a person ceases to be a registered person, any goods and services then forming part of the assets of a taxable activity carried on by that person shall be deemed to be supplied by that person in the course of that taxable activity at a time immediately before that person ceases to be a registered person, unless the taxable activity is carried on by another person who, pursuant to section 58, is deemed to be a registered person.

(3A)

[Repealed]

(3B)

For the purposes of this Act, when a person who is a non-resident ceases to be a registered person,—

(a)

any goods that are part of the assets of the taxable activity carried on by the person that are present in New Zealand at the time the person ceases to be registered are treated as supplied by the person in the course of the taxable activity at a time immediately before the person ceases to be registered:

(b)

any services that would be performed in New Zealand as part of the taxable activity carried on by the person at the time the person ceases to be registered are treated as performed by the person in the course of the taxable activity at a time immediately before the person ceases to be registered.

(3C)

For an asset affected by subsection (3) or (3B), if a transfer of ownership of the asset would be a financial service, the subsection deems the person to make a supply of the asset by a transfer of ownership.

(4)

For the purposes of this Act, a credit agreement to which subpart 2 of Part 4A of the Fair Trading Act 1986 applies shall not constitute a supply of goods and services unless the purchaser has failed to exercise the right under section 36M of that Act to cancel the agreement within the period made available to the purchaser by that section.

(5)

For the purposes of this Act, any contract that is a layby sale to which subpart 1 of Part 4A of the Fair Trading Act 1986 applies shall not constitute a supply of goods and services unless the goods which are the subject of the contract are delivered to the buyer and the property therein is transferred to the buyer:

provided that a supply of services shall, in respect of any such contract, be deemed to have taken place where—

(a)

a layby sale is cancelled pursuant to section 36F or 36G of the Fair Trading Act 1986; and

(b)

the seller either—

(i)

retains any amount paid to the seller to recoup that seller’s cancellation charge in respect of the layby sale; or

(ii)

recovers any amount (including, or in addition to, the amount referred to in subparagraph (i)) from the buyer,—

pursuant to section 36H(b) and (c) of the Fair Trading Act 1986.

(6)

For the purposes of this Act, every public authority is deemed to supply goods and services where, within the meaning of the Public Finance Act 1989, any amount is brought to charge by the public authority as revenue from the Crown for the supply of outputs.

(6AA)

For the purposes of this Act, a levy that is paid under the Climate Change Response Act 2002 is treated as if it were consideration for a supply of services in furtherance of a taxable activity carried on by—

(a)

the New Zealand Transport Agency, if the levy is paid under section 228 of that Act; or

(b)

the Environmental Protection Authority established by section 7 of the Environmental Protection Authority Act 2011, if the levy is recovered under section 230 of that Act.

(6AAB)

any person for the benefit and on behalf of another person in relation to or in respect of that other person’s taxable activity,—

that payment shall be deemed to be consideration for a supply of goods and services by the person to whom or for whose benefit the payment is made in the course or furtherance of that person’s taxable activity.

(6E)

For the purposes of subsection (6D), the term payment in the nature of a grant or subsidy—

(a)

includes—

(i)

any suspensory loan or advance, when that loan or advance becomes non-repayable by reason of its conditions for non-repayment being satisfied; and

(ii)

any payment in the nature of a grant or subsidy of a kind that is declared by the Governor-General by Order in Council to be a taxable grant or subsidy for the purposes of subsection (6D), being a payment that, but for such declaration, would be excluded from this definition by virtue of paragraph (b)(ii):

(b)

does not include—

(i)

any payment of a benefit paid under the Social Security Act 2018; or

(ii)

subject to paragraph (a)(ii), any other payment made to a person where the payment is for the personal use and benefit of the person or, as the case may be, a relative (as defined in paragraph (a) of the definition of that term in section YA 1 of the Income Tax Act 2007) of the person; or

(iii)

any payment of a kind that is declared by the Governor-General by Order in Council not to be a taxable grant or subsidy for the purposes of subsection (6D).

(6EB)

An order under subsection (6E)(a)(ii) or (b)(iii) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

(6F)

a development contribution under the Local Government Act 2002.

(7D)

[Repealed]

(7E)

[Repealed]

(7F)

For the purposes of this Act, when a person is liable to pay a levy set under section 40 of the Infrastructure Funding and Financing Act 2020 by a responsible SPV, as defined in section 7 of that Act, the levy is treated as being consideration for a supply of goods and services to the person by the responsible SPV.

(8A)

For the purposes of this Act, a levy or other amount paid to a unit title body corporate by a member of the body corporate, other than as reimbursement for a payment by the body corporate of an amount that would, if not charged to the body corporate, be payable by the member for an exempt supply to the member, is treated as being consideration received for services supplied by the body corporate to the member.

(8AB)

For the purposes of this Act, a unit title body corporate is treated as receiving, on the day when the body corporate becomes a registered person (the registration day), consideration for a service, supplied on the registration day by the body corporate in the course of its taxable activity, equal in value to the total value held by the body corporate on the registration day of money and of assets that are not common property and were received by the body corporate as exempt supplies.

(8)

as commission for participating in gambling played or conducted in a casino venue,—

the money paid must be treated as payment for the supply of services by the holder of the casino operator’s licence.

(11C)

For the purposes of subsection (11B), the terms casino venue, chip, and gambling have the meanings set out in section 4(1) of the Gambling Act 2003.

(11CB)

For the purposes of this Act, if a registered person in the course of a taxable activity receives a prize from a racing club or racing code for the performance in a race of a horse or greyhound owned by the registered person, the prize is treated as being consideration for a service provided by the registered person to the racing club or racing code in the course of the taxable activity.

(11CC)

For the purposes of subsection (11CB), race, racing club, and racing code have the meaning set out in section 5(1) of the Racing Industry Act 2020.

(11D)

Subsections (11E) to (11I) apply to a token, stamp or voucher that gives the recipient the right to receive goods and services, other than a token, stamp or voucher issued for no consideration.

(11E)

The issue or sale of a token, stamp or voucher is treated as a supply of goods and services.

(11EA)

A supply does not include the issue or sale of a token, stamp or voucher by a registered person to another registered person who subsequently issues or sells the token, stamp or voucher, unless the first-mentioned registered person is the person who supplies the goods and services on redemption of the token, stamp or voucher.

(11F)

A supply of goods and services is not treated as being made to the extent that goods and services are supplied for the redemption of a token, stamp or voucher.

(11G)

Despite subsection (11F), the supplier of a token, stamp or voucher, with a face value may treat the supply of goods and services on the redemption of the token, stamp or voucher instead of the issue or sale, as a supply of goods and services by the redeemer of the token, stamp, or voucher—

(a)

if the supply is a supply of remote services or of distantly taxable goods; or

(b)

when a supply does not meet the requirements of paragraph (a)—

(i)

if it is not practical to treat the issue or sale as a supply of goods and services; and

(ii)

if the supplier of the goods and services and the issuer or seller of the token, stamp, or voucher are, or could be, different persons, the issuer and the supplier, or the seller and the supplier, agree or are parties to an agreement.

(11GA)

For the purpose of subsection (11G)(a), a situation in which it may not be practical to treat the issue or sale as a supply of goods and services includes one in which the issuer or seller of a token, stamp or voucher and the supplier of the goods and services for which the token, stamp or voucher is redeemed may be different persons.

(11H)

Subsection (11G) does not apply to the extent that the consideration that is received for the supply is more than the face value of the token, stamp or voucher.

(11I)

Subsection (11G) does not apply to the supply of—

(a)

an adhesive label, or a mark or design, that is—

(i)

issued or sold by a person to another person; and

(ii)

affixed to, impressed on, or printed on stationery; and

(iii)

indicates pre-payment of the fee chargeable for the carriage of a letter, parcel, or other article; and

(iv)

not intended to distinguish the article to which it relates from similar articles carried by the same person:

(b)

a token, stamp or voucher that gives the recipient the right to receive services described in section 11A(2).

(12)

The disposition of a taxable activity as a going concern shall be deemed to be a supply of goods made in the course or furtherance of the taxable activity.

(13)

For the purpose of this Act, except for subsection (13B) and section 20(3), if a registered person receives a payment under a contract of insurance, whether or not the person is a party to the contract, the payment is, to the extent that it relates to a loss incurred in the course or furtherance of the registered person’s taxable activity, deemed to be consideration received for a supply of services performed by the registered person—

(a)

on the day the registered person receives the payment; and

(b)

in the course or furtherance of the registered person’s taxable activity:

provided that this subsection shall not apply in respect of any payment received pursuant to a contract of insurance where—

(a)

the supply of that contract of insurance is not a supply charged with tax pursuant to section 8(1); or

(b)

that payment is in respect of an entitlement for any loss of earnings (being earnings within the meaning of the Accident Compensation Act 1982 or the Accident Rehabilitation and Compensation Insurance Act 1992 or the Accident Insurance Act 1998 or the Accident Compensation Act 2001); or

(c)

the supply of the contract of insurance is a supply that is chargeable with tax only because sections 5B and 8(4B) apply to it; or

(d)

the supply of the contract of insurance is a supply of remote services that is zero-rated under section 11A(1)(x).

(13AA)

If a registered person claims a deduction in accordance with section 20(3) and (3K) for supplies of goods and services used in the course or furtherance of an activity that is not a taxable activity, and does not make an election under section 20(3KB) in relation to the activity before receiving a payment under a contract of insurance in the course or furtherance of the activity, subsection (13) applies to the payment as if the activity were a taxable activity of the registered person.

(13A)

For the purposes of this Act, if a registered person receives any refund of excise duty or excise-equivalent duty paid out of a Crown Bank Account under section 41 of the Land Transport Management Act 2003, that refund is, to the extent that it relates to excise duty or excise-equivalent duty incurred with the intention of using the supply for making taxable supplies, deemed to be consideration received for a supply of services by that registered person in the course or furtherance of that person’s taxable activity.

(13B)

For the purposes of this Act, where—

(a)

an insurer recovers an amount (other than aggravated or exemplary damages) as a result of the exercise of rights acquired by subrogation under a contract of insurance; and

(b)

a deduction under section 20(3)(d) has been allowed to the insurer for the payment to which the recovered amount relates—

the amount recovered is deemed to be consideration received for a supply of services performed in the course of that insurer’s taxable activity, and a supply of services is deemed to be performed on the day of the insurer’s receipt of the amount.

(14)

If a supply is charged with a tax under section 8, but section 11, 11A, 11AB, 11B, or 11C requires part of the supply to be charged at the rate of 0%, that part of the supply is treated as being a separate supply.

(14B)

If part of a supply of an equity security or participatory security is the supply of a right to receive supplies of goods and services that are not exempt supplies, the supply of the right is treated as being a supply of goods and services made for a consideration.

(15)

When either of the following supplies are included in a supply, they are deemed to be a separate supply from the supply of any other real property that is included in the supply:

(a)

a supply of a principal place of residence:

(b)

a supply referred to in section 14(1)(d):

(c)

a supply that a person elects to apply section 6(3)(e):

(16)

Where a registered person has claimed a deduction in accordance with section 20(3) in respect of the supply of a dwelling, any subsequent supply by the registered person of—

(a)

the dwelling; or

(b)

any land or other part of the dwelling that has ceased or will by reason of the supply cease to be appurtenant to or enjoyed with the dwelling,—

will, for the avoidance of doubt but subject to subsections (17), (18), and (19)(b), be deemed to be a taxable supply.

(17)

[Repealed]

(18)

[Repealed]

(19)

A registered person who has claimed a deduction in accordance with section 20(3) in respect of the supply of a dwelling that is not used by the person principally for the purpose of making taxable supplies may, by notification to the Commissioner in such form as the Commissioner may approve made before 1 August 1996, elect to treat that dwelling as being supplied by the registered person in the taxable period in which that notification is given; in which case—

(a)

that supply will be treated by virtue of subsection (16) as a taxable supply; but

(b)

without prejudice to the application of any other provision of this Act, subsection (16) will not apply to any subsequent supply of the dwelling by the registered person.

(20)

A supply of services to which section 11A(1)(ma) applies is treated as the only supply of services for the consideration provided by the warrantor.

(21)

If goods and services are provided under warranty, the supply of the goods and services is treated as a supply of services for the purpose of section 11A(1)(ma).

(22)

In relation to a supply to which subsection (2) applies, if the supply by the first person would be zero-rated under section 11(1)(mb), the second person must zero-rate the supply in the same way.

(23)

If section 11(1)(mb) is treated as applying to a taxable supply of goods and, after the date on which the relevant transaction is settled, it is found that the provision does not apply, the recipient of the supply is treated as if they were a supplier making, on the date on which the error is found, a supply of those goods that is chargeable with tax under section 8(1).

(24)

If a supply that wholly or partly consists of land is made, and the supply includes the provision of services, the supply of the services is treated as a supply of goods for the purposes of section 11(1)(mb).

(24B)

If a registered person claims a deduction in accordance with section 20(3) and (3K) for supplies of goods and services used in the course or furtherance of an activity that is not a taxable activity, and does not make an election under section 20(3KB) in relation to the activity before making a supply of goods and services used in the course or furtherance of the activity, the supply is a taxable supply.

(25)

For the purposes of this Act, an amount charged for the late payment of an account is treated as being consideration for a supply of services in the course or furtherance of a taxable activity, whether the amount is described as a fee, penalty, or other charge. But this subsection does not apply to the extent to which the amount is penalty or default interest, or a charge in the nature of penalty or default interest, that is imposed under—

(a)

a contract for the supply of goods and services:

(b)

an enactment.

(26)

A supply under subsection (25) is treated for tax purposes in the same way as the supply to which the amount charged for the late payment relates.

(27)

the person’s behaviour described in paragraph (a) is a repeated occurrence or the amount of tax on the supply that was not collected by the marketplace operator is substantial.

See secondary legislation made under this Act (if published on this website)

Legislation Act 2019 requirements for secondary legislation made under this section
Publication	PCO must publish it on the legislation website and notify it in the Gazette	LA19 s 69(1)(c)
Presentation	The Minister must present it to the House of Representatives	LA19 s 114, Sch 1 cl 32(1)(a)
Disallowance	It may be disallowed by the House of Representatives	LA19 ss 115, 116
This note is not part of the Act.

Section 5(2): substituted, on 19 December 1989, by section 4(1) of the Goods and Services Tax Amendment Act (No 2) 1989 (1989 No 152).

Section 5(2): amended, on 1 April 2005, by section 139 of the Credit Contracts and Consumer Finance Act 2003 (2003 No 52).

Section 5(2)(a): replaced, on 30 March 2017, by section 347(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 5(2)(b): amended, on 2 June 2016, by section 183(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 5(3): amended (with effect on 3 December 1985), on 22 June 1987 (applying to supplies made on or after 3 December 1985), by section 3(3) of the Goods and Services Tax Amendment Act 1987 (1987 No 103).

Section 5(3A): repealed, on 10 October 2000 (applying on 10 October 2000), by section 86(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 5(3B): inserted, on 1 April 2014, by section 121(1) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 5(3C): inserted (with effect on 1 October 1986), on 30 March 2017, by section 347(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 5(4): amended, on 17 June 2014, by section 41(2) of the Fair Trading Amendment Act 2013 (2013 No 143).

Section 5(5): amended, on 17 June 2014, by section 41(2) of the Fair Trading Amendment Act 2013 (2013 No 143).

Section 5(5)(a): amended, on 17 June 2014, by section 41(2) of the Fair Trading Amendment Act 2013 (2013 No 143).

Section 5(5)(b): amended, on 17 June 2014, by section 41(2) of the Fair Trading Amendment Act 2013 (2013 No 143).

Section 5(5)(b)(i): amended, on 17 June 2014, by section 41(2) of the Fair Trading Amendment Act 2013 (2013 No 143).

Section 5(6): substituted, on 10 April 1995, by section 3(1) of the Goods and Services Tax Amendment Act 1995 (1995 No 22).

Section 5(6AA): inserted, on 1 January 2013, by section 103 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 5(6AAB): inserted, on 1 July 2020, by section 16(2) of the Land Transport (Rail) Legislation Act 2020 (2020 No 33).

Section 5(6A): substituted, on 1 May 2011, by section 35(4) of the Land Transport Amendment Act 2009 (2009 No 17).

Section 5(6AB): inserted (with effect on 1 October 1986), on 21 June 2005, by section 155 of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).

Section 5(6AB): amended (with effect on 1 July 2017), on 30 March 2022, by section 8(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 5(6AB): amended, on 1 July 2017, by section 197 of the Fire and Emergency New Zealand Act 2017 (2017 No 17).

Section 5(6AC): inserted (with effect on 1 July 2009), on 8 December 2009, by section 147 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section 5(6B): replaced, on 1 August 2012, by section 94 of the Road User Charges Act 2012 (2012 No 1).

Section 5(6BB): inserted, on 27 June 2018, by section 7(3) of the Land Transport Management (Regional Fuel Tax) Amendment Act 2018 (2018 No 15).

Section 5(6C): substituted, on 28 February 2002, by section 102(1) of the Electoral Amendment Act 2002 (2002 No 1).

Section 5(6CA): inserted, on 28 February 2002, by section 102(1) of the Electoral Amendment Act 2002 (2002 No 1).

Section 5(6D): inserted (with effect on 1 October 1986), on 28 June 1991, by section 2(1) of the Goods and Services Tax Amendment Act (No 3) 1991 (1991 No 48).

Section 5(6E): inserted (with effect on 1 October 1986), on 28 June 1991, by section 2(1) of the Goods and Services Tax Amendment Act (No 3) 1991 (1991 No 48).

Section 5(6E)(b)(i): amended, on 26 November 2018, by section 459 of the Social Security Act 2018 (2018 No 32).

Section 5(6E)(b)(i): amended, on 1 October 1998, by section 57 of the Social Security Amendment Act 1998 (1998 No 19).

Section 5(6E)(b)(ii): amended (with effect on 1 April 2010), on 30 March 2022, by section 8(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 5(6E)(b)(ii): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 5(6E)(b)(ii): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).

Section 5(6EB): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Section 5(6F): inserted, on 28 May 2015, by section 4 of the Taxation (Social Housing Reform) Act 2015 (2015 No 51).

Section 5(6F): amended (with effect on 28 May 2015), on 23 March 2020, by section 242 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).

Section 5(6F): amended, on 1 October 2019, by section 33 of the Kāinga Ora–Homes and Communities Act 2019 (2019 No 50).

Section 5(7)(a): substituted (with effect on 3 December 1985), on 8 August 1986, by section 5(2) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 5(7)(a) proviso: repealed, on 1 July 2003, by section 262 of the Local Government Act 2002 (2002 No 84).

Section 5(7)(b): substituted, on 10 October 2000 (applying on and after 1 November 1995), by section 86(3) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 5(7B): inserted, on 25 November 2003, by section 144(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 5(7C): inserted, on 25 November 2003, by section 144(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 5(7D): repealed, on 6 August 2010, by section 5(2) of the Affordable Housing: Enabling Territorial Authorities Act Repeal Act 2010 (2010 No 101).

Section 5(7E): repealed, on 6 August 2010, by section 5(2) of the Affordable Housing: Enabling Territorial Authorities Act Repeal Act 2010 (2010 No 101).

Section 5(7F): inserted, on 7 August 2020, by section 161 of the Infrastructure Funding and Financing Act 2020 (2020 No 47).

Section 5(8A): inserted (with effect on 1 October 1986), on 24 February 2016, by section 274(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section 5(8A): amended, on 30 March 2022, by section 8(3) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 5(8AB): inserted (with effect on 26 February 2015), on 24 February 2016, by section 274(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section 5(8): replaced, on 1 August 2020, by section 129 of the Racing Industry Act 2020 (2020 No 28).

Section 5(9): repealed, on 1 August 2003, by section 69(1) of the Racing Act 2003 (2003 No 3).

Section 5(10): replaced, on 17 July 2013, by section 121(2) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 5(10B): inserted, on 1 October 2016, by section 53(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 5(11): substituted, on 1 July 2004, by section 374 of the Gambling Act 2003 (2003 No 51).

Section 5(11): amended, on 1 October 2016, by section 53(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 5(11A): repealed, on 1 August 1990, by section 3(1) of the Goods and Services Tax Amendment Act 1990 (1990 No 64).

Section 5(11B): substituted, on 1 July 2004, by section 374 of the Gambling Act 2003 (2003 No 51).

Section 5(11C): substituted, on 1 July 2004, by section 374 of the Gambling Act 2003 (2003 No 51).

Section 5(11CB): inserted (with effect on 1 April 2012), on 30 March 2017, by section 347(3) (and see section 347(4)) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 5(11CC): inserted (with effect on 1 April 2012), on 30 March 2017, by section 347(3) (and see section 347(4)) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 5(11CC): amended, on 1 August 2020, by section 129 of the Racing Industry Act 2020 (2020 No 28).

Section 5(11D): inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 86(4) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 5(11D): amended, on 27 March 2001 (applying on and after 10 October 2000), by section 62(1) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).

Section 5(11E): inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 86(4) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 5(11E): amended, on 27 March 2001 (applying on and after 10 October 2000), by section 62(2) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).

Section 5(11EA): inserted, on 27 March 2001 (applying on and after 10 October 2000), by section 62(3) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).

Section 5(11F): substituted, on 27 March 2001 (applying on and after 10 October 2000), by section 62(4) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).

Section 5(11G): substituted, on 27 March 2001 (applying on and after 10 October 2000), by section 62(5) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).

Section 5(11G): amended, on 1 December 2019, by section 8(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 5(11G): amended, on 24 October 2001 (applying on and after 10 October 2000), by section 238(1)(a) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).

Section 5(11G)(a): replaced, on 1 December 2019, by section 8(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 5(11G)(b): replaced (with effect on 1 December 2019), on 31 March 2023, by section 124(6) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).

Section 5(11GA): inserted, on 27 March 2001 (applying on and after 10 October 2000), by section 62(5) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).

Section 5(11GA): amended (with effect on 10 October 2000), on 24 February 2016, by section 274(3) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section 5(11H): inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 86(4) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 5(11I): inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 86(4) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 5(11I)(a): substituted, on 3 April 2006 (applying for supplies that are made on or after 3 April 2006), by section 285(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 5(13): amended, on 10 October 2000 (applying on and after 10 October 2000), by section 86(5) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 5(13) proviso: substituted (with effect on 23 September 1987), on 11 December 1987 (applying to supplies made on or after 23 September 1987), by section 2(1) of the Goods and Services Tax Amendment Act (No 2) 1987 (1987 No 191).

Section 5(13) proviso: amended, on 10 October 2000 (applying on and after 10 October 2000), by section 86(6) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 5(13) proviso paragraph (b): substituted, on 19 December 1998, by section 416(1) of the Accident Insurance Act 1998 (1998 No 114).

Section 5(13) proviso paragraph (b): amended, on 3 March 2010, pursuant to section 5(1)(b) of the Accident Compensation Amendment Act 2010 (2010 No 1).

Section 5(13) proviso paragraph (b): amended (with effect on 1 January 2005), on 2 November 2012, by section 209(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 5(13) proviso paragraph (b): amended, on 1 April 2002, by section 338 of the Accident Compensation Act 2001 (2001 No 49).

Section 5(13) proviso paragraph (c): inserted (with effect on 1 January 2005), on 2 November 2012, by section 209(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 5(13) proviso paragraph (c): amended, on 1 October 2016, by section 53(3) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 5(13) proviso paragraph (d): inserted, on 1 October 2016, by section 53(4) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 5(13AA): inserted (with effect on 15 May 2018), on 18 March 2019, by section 297(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section 5(13A): amended (with effect on 1 April 2011), on 18 March 2019, by section 297(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section 5(13A): substituted, on 13 November 2003, by section 90 of the Land Transport Management Act 2003 (2003 No 118).

Section 5(13A): amended, on 25 January 2005, pursuant to section 65R(3) of the Public Finance Act 1989 (1989 No 44).

Section 5(13B): inserted, on 2 September 1996 (applying to supplies made on or after 1 October 1986), by section 52(1) of the Taxation (Remedial Provisions) Act 1996 (1996 No 159).

Section 5(13B)(b): substituted, on 10 October 2000 (applying on and after 10 October 2000), by section 86(8) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 5(14): substituted, on 6 October 2009, by section 705 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 5(14B): inserted, on 3 April 2006 (applying for supplies of financial services that are made on or after 3 April 2006), by section 285(2) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 5(15): substituted (with effect on 1 April 2011), on 29 August 2011 (applying to supplies made on or after 1 April 2011), by section 236(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section 5(15)(c): inserted (with effect on 1 April 2011), on 31 March 2023, by section 124(7) (and see section 124(15) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).

Section 5(16): added, on 12 December 1995, by section 3(1) of the Goods and Services Tax Amendment Act (No 2) 1995 (1995 No 75).

Section 5(17): repealed, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 6(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 5(18): repealed (with effect on 24 February 2020), on 30 March 2022, by section 8(4) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 5(19): added, on 12 December 1995, by section 3(1) of the Goods and Services Tax Amendment Act (No 2) 1995 (1995 No 75).

Section 5(20): added, on 17 October 2002 (applying on and after 1 August 2002), by section 98(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).

Section 5(21): added, on 17 October 2002 (applying on and after 1 August 2002), by section 98(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).

Section 5(22): added, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 6(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 5(23): added, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 6(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 5(23): amended, on 30 March 2022, by section 8(5)(a) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 5(23): amended, on 30 March 2022, by section 8(5)(b) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 5(24): added, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 6(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 5(24B): inserted (with effect on 15 May 2018), on 18 March 2019, by section 297(3) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section 5(25): inserted (with effect on 1 April 2003), on 2 November 2012, by section 209(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 5(26): inserted (with effect on 1 April 2003), on 2 November 2012, by section 209(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 5(27): inserted, on 1 October 2016, by section 53(5) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 5(27): amended, on 1 December 2019, by section 8(3) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 5(27)(aa): inserted, on 1 December 2019, by section 8(3) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 5(27)(a): amended, on 1 December 2019, by section 8(4)(a) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 5(27)(a): amended, on 1 December 2019, by section 8(4)(b) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 5(27)(b): amended, on 1 December 2019, by section 8(5) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 5(27)(b)(ii): amended, on 1 December 2019, by section 8(6) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 5(27)(b)(iii): inserted, on 1 December 2019, by section 8(7) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 5(28): inserted, on 1 December 2019, by section 8(8) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

5B Supply of certain imported goods and services

For the purpose of the definition of output tax and sections 8(1), 15A to 15E, 19A, 20(4), 20B, 25AA, 51, 52, 57, 75, 76(6), 78B, 78BA and 78C, a supply of goods or services that is treated by section 8(4B) as being made in New Zealand is treated as being made by the recipient of the supply in the course or furtherance of a taxable activity carried on by the recipient.

Section 5B: inserted, on 1 January 2005, by section 145 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 5B heading: amended, on 1 December 2019, by section 9(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 5B: amended, on 1 December 2019, by section 9(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 5B: amended (with effect on 1 April 2007), on 6 October 2009, by section 706 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

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; or

(e)

an activity involving the supply of goods by way of sale that a registered person has elected is not a taxable activity, provided—

(i)

the person has not previously claimed a deduction under section 20(3) for the supply of goods before the goods are sold; and

(ii)

the goods were not acquired for the principal purpose of making taxable supplies; and

(iii)

the goods were not used for the principal purpose of making taxable supplies; and

(iv)

the goods were not acquired as zero-rated supplies under section 11(1)(m) or (mb).

(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(3)(e): inserted (with effect on 1 April 2011), on 31 March 2023, by section 125(1) (and see section 125(3) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).

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).

7 Act to bind Crown

This Act shall bind the Crown.

Part 2 Imposition of tax

8 Imposition of goods and services tax on supply

(1)

Subject to this Act, a tax, to be known as goods and services tax, shall be charged in accordance with the provisions of this Act at the rate of 15% on the supply (but not including an exempt supply) in New Zealand of goods and services, on or after 1 October 1986, by a registered person in the course or furtherance of a taxable activity carried on by that person, by reference to the value of that supply.

(2)

For the purposes of this Act, goods and services shall be deemed to be supplied in New Zealand if the supplier is resident in New Zealand, and shall be deemed to be supplied outside New Zealand if the supplier is a non-resident.

(2B)

To the extent to which a supply of services consists of the facilitation of inbound tour operations, the supply is chargeable with tax under subsection (1), and section 11A does not apply to that part of the supply.

(2C)

Despite subsection (2B), the part of the supply that consists of the facilitation of inbound tour operations is charged at the rate of 0% if—

(a)

a registered person supplies the services in the period from 1 July 2007 to 30 June 2008 (the transitional period); and

(b)

the consideration for the supply is an amount quantified—

(i)

on the basis of the person’s gross margin attributable to the facilitation of inbound tour operations; or

(ii)

by other means that the Commissioner is able to verify.

(2D)

For the purposes of subsection (2C)(b), the amount of the consideration must be—

(a)

calculated for each of the person’s taxable periods that fall in the transitional period:

(b)

for any days in the person’s taxable period that fall outside the transitional period, apportioned on a pro rata basis.

(2E)

If a registered person has supplied services in the transitional period by way of the facilitation of inbound tour operations and tax was paid under this section in relation to the services, the person is entitled to a refund of the amount of tax paid. They must apply for the refund within the period that starts on the date of Royal assent of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 and ends 6 months after that date.

(2F)

For the purposes of subsections (2B) and (2C), services that consist of the facilitation of inbound tour operations means the services that a registered person provides in packaging 1 or more domestic tourism products and services in New Zealand and selling them outside New Zealand to a non-resident person. The tourism products and services may include accommodation, meals, transport, and other activities.

(3)

Despite subsection (2), goods and services are treated as being supplied in New Zealand if the supplier is a non-resident and—

(a)

the goods are in New Zealand at the time of the supply and are not distantly taxable goods to which paragraph (ab) applies; or

(ab)

the goods are distantly taxable goods to which subsection (4E) does not apply; or

(b)

the services are physically performed in New Zealand by a person who is in New Zealand at the time the services are performed; or

(c)

the services are remote services supplied to a person resident in New Zealand, other than services that are physically performed in New Zealand by a person who is in New Zealand at the time the services are performed.

(4)

Despite subsection (3), if a supplier who is a non-resident supplies goods and services, to which subsection (3)(a) or (b) would apply but for this subsection, to a registered person for the purposes of carrying on the registered person’s taxable activity, the goods and services are treated as being supplied outside New Zealand unless the supplier and the recipient of the supply agree that this subsection will not apply to the supply.

(4B)

Despite subsection (2), a supply of goods or services that is treated as not being made in New Zealand by subsections (4), (4D), or (4E) is treated as being made in New Zealand if—

(a)

the goods or services are supplied by a non-resident to a resident; and

(b)

the recipient of the supply—

(i)

estimates at the time of acquisition that the percentage intended use of the goods or services is less than 95%; or

(ii)

determines at the end of an adjustment period that the percentage actual use of the goods or services is less than 95%; and

(bb)

for a supply of goods,—

(i)

the goods are part of a consignment of goods having a value for the purposes of schedule 4 of the Customs and Excise Act 2018 that is less than or equal to the entry value threshold; and

(ii)

the recipient does not pay the amount of tax levied on the goods to the New Zealand Customs Service or to the supplier; and

(c)

the supply would be a taxable supply if made in New Zealand by a registered person in the course or furtherance of a taxable activity carried on by the registered person.

(4C)

An allocation of costs by a non-resident to a resident is treated as being a supply of services that satisfies section 8(4B)(a) and (c), and the amount provided to the non-resident by the resident under the allocation is treated as being the consideration for the supply.

(4D)

Despite subsection (3), if a non-resident supplier supplies remote services to which subsection (3)(c) would apply but for this subsection to a registered person for the purposes of carrying on the registered person’s taxable activity, the services are treated as being supplied outside New Zealand unless the supplier chooses to treat the supply as made in New Zealand.

(4E)

Despite subsection (3), if a non-resident is the supplier of distantly taxable goods, to which subsection (3)(ab) would apply but for this subsection, to a registered person for the purposes of carrying on the registered person’s taxable activity, the goods are treated as being supplied outside New Zealand, except if subsection (4F) applies to the supply.

(4F)

Subsection (4E) does not apply to treat goods as being supplied outside New Zealand if—

(a)

the non-resident supplier chooses that this subsection apply to the supply of the goods; and

(b)

at the time of the election, the non-resident supplier reasonably expects that more than 50% of the value of the supplies made by the non-resident supplier to persons in New Zealand during the period of 12 months from the election will be made to persons who are not registered persons; and

(c)

the value of the supply is less than or equal to $1,000.

(5)

the person who pays for the services:

(iii)

the person who contracts for the supply; and

(b)

if more than 1 person satisfies paragraph (a), is the person who appears highest on the list in that paragraph.

Section 8(1): amended, on 20 May 2010 (applying to supplies made on or after 1 October 2010), by section 45(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section 8(1): amended, on 1 July 1989 (applying to supplies made on or after 1 July 1989), by section 15(1) of the Finance Act 1989 (1989 No 13).

Section 8(2): amended, on 25 November 2003, by section 146(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 8(2) proviso: repealed, on 1 July 2003, by section 154 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).

Section 8(2B): inserted (with effect on 1 July 2007), on 8 December 2009, by section 146 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section 8(2C): inserted (with effect on 1 July 2007), on 8 December 2009, by section 146 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section 8(2D): inserted (with effect on 1 July 2007), on 8 December 2009, by section 146 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section 8(2E): inserted (with effect on 1 July 2007), on 8 December 2009, by section 146 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section 8(2E): amended, on 2 June 2016, by section 184 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 8(2F): inserted (with effect on 1 July 2007), on 8 December 2009, by section 146 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section 8(3): added, on 1 July 2003, by section 154 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).

Section 8(3): amended, on 1 October 2016, by section 54(1)(a) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 8(3): amended, on 25 November 2003, by section 146(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 8(3)(a): replaced, on 1 December 2019, by section 10(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 8(3)(ab): inserted, on 1 December 2019, by section 10(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 8(3)(b): amended, on 1 October 2016, by section 54(1)(b) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 8(3)(c): inserted, on 1 October 2016, by section 54(1)(c) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 8(4): added, on 1 July 2003, by section 154 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).

Section 8(4): amended, on 1 October 2016, by section 54(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 8(4): amended, on 25 November 2003, by section 146(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 8(4B): inserted, on 1 January 2005, by section 146(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 8(4B): amended, on 1 December 2019, by section 10(2)(a) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 8(4B): amended, on 1 December 2019, by section 10(2)(b) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 8(4B): amended, on 1 October 2016, by section 54(3) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 8(4B)(a): amended, on 1 December 2019, by section 10(3) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 8(4B)(b): substituted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 7(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 8(4B)(b)(i): amended, on 1 December 2019, by section 10(4) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 8(4B)(b)(ii): amended, on 1 December 2019, by section 10(5) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 8(4B)(b)(ii): amended (with effect on 1 April 2011), on 2 November 2012, by section 210 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 8(4B)(bb): inserted (with effect on 1 December 2019), on 23 March 2020, by section 243(1) (and see section 243(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).

Section 8(4C): inserted, on 1 January 2005, by section 146(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 8(4D): inserted, on 1 October 2016, by section 54(4) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 8(4E): inserted, on 1 December 2019, by section 10(6) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 8(4F): inserted, on 1 December 2019, by section 10(6) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 8(5): added, on 1 July 2003, by section 154 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).

Section 8(5): amended, on 1 October 2016, by section 54(5) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 8(5): amended, on 1 January 2005, by section 146(3) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 8(6): added, on 1 July 2003, by section 154 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).

Section 8(6): amended, on 25 November 2003, by section 146(4) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 8(7): replaced, on 1 April 2022, by section 183(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).

Section 8(8): added, on 1 July 2003, by section 154 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).

Section 8(8): amended (with effect on 1 July 2003), on 25 November 2003, by section 146(5) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 8(8B): inserted, on 1 April 2022, by section 183(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).

Section 8(9): substituted (with effect on 1 July 2003), on 25 November 2003, by section 146(6) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

8A Certain supplies of telecommunications services

(1)

Despite section 8(2), if a telecommunications supplier cannot apply section 8(6) because it is impractical for the supplier to determine the physical location of a person due to the type of service or to the class of customer to which the person belongs, the supplier must treat a supply of telecommunications services as being supplied in New Zealand if the person’s address for receiving invoices from the supplier is in New Zealand.

(2)

Subsection (1) does not apply to supplies made between telecommunications suppliers.

(3)

If subsection (1) applies, the telecommunications supplier must satisfy subsection (1) for all supplies of telecommunications services made for the type of service or the class of customer.

(4)

In this section, address means the physical residential or business address of a person to which invoices are sent, and does not include a post office box number.

Section 8A: inserted, on 1 July 2003, by section 155 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).

8B Remote services: determining residence of recipients

(1)

Subsection (2) applies to determine whether a supply is made in New Zealand under section 8(3)(c), or for the purposes of sections 10(14B), 11A(1)(j), 60(1AB), 60C, and 60D, when remote services are supplied to a person resident in New Zealand.

(2)

whether the supply is made in a low-value high-volume digital context:

(ii)

whether the supply is a single instance or a supply made as part of a continuing relationship between the recipient and the supplier:

(b)

the availability to the supplier of information about the recipient’s residence.

(5)

Section 8BB(1) applies to determine the treatment of a supply to a registered person of remote services described in section 8(3)(c) when section 8(4D) applies, and for the purposes of sections 11A(1)(j), 60C, and 60D.

(6)

[Repealed]

(7)

[Repealed]

(8)

[Repealed]

Section 8B: inserted, on 1 October 2016, by section 55 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 8B heading: amended, on 1 December 2019, by section 11(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 8B(1): amended, on 1 December 2019, by section 11(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 8B(1): amended (with effect on 1 October 2016), on 30 March 2017, by section 349(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 8B(5): amended, on 1 December 2019, by section 11(3) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 8B(5): amended (with effect on 1 October 2016), on 30 March 2017, by section 349(2)(a) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 8B(5): amended (with effect on 1 October 2016), on 30 March 2017, by section 349(2)(b) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 8B(6): repealed, on 1 December 2019, by section 11(4) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 8B(7): repealed, on 1 December 2019, by section 11(4) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 8B(8): repealed, on 1 December 2019, by section 11(4) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

8BB Certain supplies by non-residents: determining whether recipient is registered person

(1)

A non-resident registered person (the supplier) that makes a supply to a person (the recipient) of distantly taxable goods to which section 8(3)(ab) applies and involving delivery at a place in New Zealand, or of remote services to which section 8(3)(c) applies, must not treat the supply as being made to a registered person for use in the course or furtherance of the registered person’s taxable activity if the recipient does not meet the requirements of this section.

(2)

A recipient meets the requirements of this section if the recipient notifies the supplier that the recipient is a registered person or provides the supplier with the recipient’s registration number or New Zealand Business Number.

(3)

The Commissioner may prescribe, as an alternative to the method in subsection (2), a method that a supplier may use to determine whether the supply is made to a registered person for use in the course or furtherance of the registered person’s taxable activity, or may agree with the supplier on the use of another method to determine whether the supply is made to a registered person for use in the course or furtherance of the registered person’s taxable activity.

(4)

In prescribing or agreeing to the use of an alternative method under subsection (3), the Commissioner may take into account—

(a)

the nature of the supply, including, for example, whether the supply is of goods and services that are purchased only by a registered person in the course or furtherance of the registered person’s taxable activity:

(b)

the value of the supply, including, for example, whether the supply is of a value that would be expected to be received only by a registered person in the course or furtherance of the registered person’s taxable activity:

(c)

the terms and conditions related to the provision of the goods and services, including, for example, whether the supply is of goods and services that may be leased, licensed, or otherwise made available, for use by a registered person in the course or furtherance of the registered person’s taxable activity.

Section 8BB: inserted, on 1 December 2019, by section 12 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

9 Time of supply

(1)

Subject to this Act, for the purposes of this Act a supply of goods and services shall be deemed to take place at the earlier of the time an invoice is issued by the supplier or the recipient or the time any payment is received by the supplier, in respect of that supply.

(2)

Notwithstanding anything in subsection (1), a supply of goods and services shall be deemed to take place—

(a)

if the supply is an associated supply,—

(i)

in the case of a supply of goods which are to be removed, at the time of the removal; and

(ii)

in the case of a supply of goods which are not to be removed, at the time when they are made available to the recipient; and

(iii)

in the case of a supply of services, at the time the services are performed, unless subparagraph (iv) applies; and

(iv)

in the case of a supply of services that is treated by section 8(4B) as being made in New Zealand, at the end of the taxable period that includes the date that is 2 months after the first balance date of the recipient that follows the completion of the performance of the services:

provided that this paragraph shall not apply in any case where an invoice is issued, or any payment is made, in respect of that supply, on or before the last day for furnishing the return in relation to the taxable period during which, but for this proviso, that supply would have been made:

(b)

where that supply is a supply to which section 5(4) refers, on the day after the last day of the period during which the recipient may exercise the right under section 36M of the Fair Trading Act 1986 to cancel the agreement:

(c)

where that supply is a supply to which section 5(5) refers, at the time at which the property in the goods is transferred to the recipient:

provided that in any case in which a supply of services is deemed to take place pursuant to the proviso to that subsection, that supply of services shall be deemed to take place at the time that the layby sale is cancelled pursuant to section 36F or 36G of the Fair Trading Act 1986:

(d)

where that supply is deemed to be made pursuant to section 5(8), when and to the extent that the amount of the money is dealt with as specified in that section:

(e)

if the supply is made under section 5(10) or (10B),—

(i)

for an amount of money paid by a person to participate in gambling (including a New Zealand lottery), on the date on which the first drawing or determination of a result commences, but this subparagraph does not apply to an instant game that is a New Zealand lottery or gambling played by means of a gaming machine as defined in section 4(1) of the Gambling Act 2003:

(ii)

for an amount of money paid by a person to participate in a prize competition on the date on which the first drawing or determination of the prize competition commences:

(f)

where the supply is for a consideration in money received by the supplier by means of any machine, meter, or other device operated by a coin or token, at the time any such coin or token is taken from that machine, meter, or other device by or on behalf of the supplier:

(g)

if the supply is treated as having been made under section 5(11B) at the time a casino count takes place:

(h)

if section 8(4B)(b)(ii) applies, the supply is treated as having been made on the last day in the adjustment period when the percentage actual use of the services falls below 95%.

(2A)

Despite subsection (1), a supply to which section 5(11G) applies is treated as taking place at the time the token, stamp or voucher is redeemed.

(2B)

If section 5(11H) applies, the excess consideration is treated as consideration in money for a supply that takes place at the time the token, stamp or voucher is issued.

(3)

Notwithstanding anything in subsection (1) or subsection (2),—

(a)

where goods are supplied under an agreement to hire, or where services are supplied under any agreement or enactment which provides for periodic payments, they shall be deemed to be successively supplied for successive parts of the period of the agreement or the enactment, and each of the successive supplies shall be deemed to take place when a payment becomes due or is received, whichever is the earlier:

(aa)

where and to the extent that—

(i)

goods are supplied progressively or periodically pursuant to any agreement or enactment which provides for the consideration for that supply to be paid in instalments or periodically and in relation to the periodic or progressive supply of those goods; or

(ii)

goods and services supplied directly in the construction, major reconstruction, manufacture, or extension of a building or an engineering work are supplied pursuant to any agreement or enactment which provides for the consideration for that supply to become due and payable in instalments or periodically in relation to the progressive nature of that construction, manufacture, or extension—

those goods and services shall be deemed to be successively supplied, and each such successive supply shall be deemed to take place whenever any payment in respect of that supply becomes due, is received, or any invoice relating only to that payment is issued, whichever is the earlier:

(b)

where goods and services are supplied under a hire purchase agreement, that supply shall be deemed to take place at the time the agreement is entered into:

(c)

for the purposes of this subsection, the term agreement to hire means an agreement for the bailment of goods for hire and includes a lease of goods and a rental agreement; but does not include—

(i)

an agreement under which the property in the goods passes to the bailee or which expressly contemplates that the property in the goods will pass to the bailee; or

(ii)

a hire purchase agreement.

(4)

[Repealed]

(5)

[Repealed]

(6)

Subject to subsections (2)(a) and (3), where the whole of the consideration (the price) for a supply under an agreement is not determined at the time of the agreement, and a supply is made under the agreement before the price is determined, the supply is deemed to take place, to the extent of a part of the price, at the earlier of when—

(a)

a payment of the part of the price becomes due or is received:

(b)

the supplier or recipient issues an invoice for the part of the price.

(7)

Notwithstanding anything in this section, where any public authority is deemed to have supplied goods and services pursuant to section 5(6), the supply shall, to the extent that the supply is brought to charge as revenue from the Crown, be deemed to take place in the taxable period in which the bringing to charge applies.

(8)

Despite subsection (1), if a local authority makes a supply to which section 5(7)(a) applies, the supply is treated as taking place on the earlier of the following dates:

(a)

the date on which an instalment notice is issued if the instalment notice requires payment of an instalment by a particular date:

(b)

the date on which payment is required by the instalment notice:

(c)

the date on which payment is received.

(9)

Despite subsection (1), an operator of a loyalty programme who meets the requirements of section 11C may treat a supply of services in a loyalty transaction as taking place at the time at which the loyalty points are redeemed for reward. But this subsection does not apply to a token, stamp, or voucher to which section 5(11D) to (11H) applies.

(10)

For the purposes of subsection (9), in a case where the operator is not resident in New Zealand but the supply of services is treated under section 8(4B) as made in New Zealand, the purchaser referred to in section 11C may treat the supply as taking place at the time at which the loyalty points are redeemed for reward if—

(a)

the operator meets the first and second requirements set out in section 11C; and

(b)

the purchaser meets the third requirement imposed on the operator under section 11C.

Section 9(1): amended, on 24 March 1988 (applying to supplies made on or after 24 March 1988), by section 6(1) of the Goods and Services Tax Amendment Act 1988 (1988 No 7).

Section 9(2)(a): amended, on 3 April 2006, by section 286 of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 9(2)(a)(iii): amended, on 1 January 2005, by section 147 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 9(2)(a)(iv): added, on 1 January 2005, by section 147 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 9(2)(b): amended, on 17 June 2014, by section 41(2) of the Fair Trading Amendment Act 2013 (2013 No 143).

Section 9(2)(c) proviso: amended, on 17 June 2014, by section 41(2) of the Fair Trading Amendment Act 2013 (2013 No 143).

Section 9(2)(d): substituted (with effect on 3 December 1985), on 8 August 1986, by section 7(1) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 9(2)(e): replaced, on 17 July 2013, by section 122 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 9(2)(e): amended, on 1 October 2016, by section 56 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 9(2)(g): substituted, on 1 July 2004, by section 374 of the Gambling Act 2003 (2003 No 51).

Section 9(2)(g): amended, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 8(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 9(2)(h): added, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 8(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 9(2)(h): amended (with effect on 1 April 2011), on 2 November 2012, by section 211(a) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 9(2)(h): amended (with effect on 1 April 2011), on 2 November 2012, by section 211(b) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 9(2A): inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 88(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 9(2B): inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 88(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 9(3)(a): amended (with effect on 3 December 1985), on 8 August 1986, by section 7(2)(a) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 9(3)(a): amended (with effect on 3 December 1985), on 8 August 1986, by section 7(2)(b) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 9(3)(aa): inserted (with effect on 3 December 1985), on 8 August 1986, by section 7(3) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 9(3)(aa)(ii): amended, on 19 December 1989, by section 5 of the Goods and Services Tax Amendment Act (No 2) 1989 (1989 No 152).

Section 9(3)(b): amended, on 1 April 2005, by section 139 of the Credit Contracts and Consumer Finance Act 2003 (2003 No 52).

Section 9(3)(b): amended (with effect on 3 December 1985), on 8 August 1986, by section 7(4)(a) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 9(3)(c)(i): amended (with effect on 3 December 1985), on 8 August 1986, by section 7(4)(b) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 9(3)(c)(ii): amended, on 1 April 2005, by section 139 of the Credit Contracts and Consumer Finance Act 2003 (2003 No 52).

Section 9(4): repealed (with effect on 3 December 1985), on 8 August 1986, by section 7(5) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 9(5): repealed (with effect on 3 December 1985), on 8 August 1986, by section 7(5) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 9(6): replaced, on 30 March 2017, by section 350(1) (and see section 350(2)) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 9(7): added (with effect on 1 July 1989), on 26 July 1989 (applying to supplies made on or after 1 July 1989), by section 86(1) of the Public Finance Act 1989 (1989 No 44).

Section 9(7): amended, on 10 April 1995, by section 4 of the Goods and Services Tax Amendment Act 1995 (1995 No 22).

Section 9(8): added, on 10 October 2000 (applying on and after 10 October 2000), by section 88(3) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 9(9): added, on 6 October 2009, by section 707 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 9(10): added, on 6 October 2009, by section 707 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

10 Value of supply of goods and services

(1)

For the purposes of this Act the following provisions of this section shall apply for determining the value of any supply of goods and services.

(2)

the amount of the consideration for the supply would have been a deduction under the Income Tax Act 2007 for the recipient of the supply if the recipient had given any consideration for the supply.

(3D)

(a)

the recipient of the supply is a branch or division that is treated by section 56B as being a separate person; and

(b)

the amount of the consideration for the supply would have been a deduction under the Income Tax Act 2007 for the branch or division if—

(i)

the branch or division were entitled to deductions under the Income Tax Act 2007:

(ii)

the branch or division had given any consideration for the supply.

(3E)

The value of a supply of goods or services that is treated by section 8(4B) as being made in New Zealand is the amount that, before the addition of the tax charged, is equal to the amount of the consideration for the supply.

(4)

Where any supply of goods is a supply which would, but for section 11(3) or (3C), be charged with tax at the rate of 0%, the consideration in money for that supply shall be deemed to be an amount equal to the purchase price of those goods to the supplier:

provided that in any case where the deduction of input tax referred to in that proviso has been made by any other person (where that supplier and that other person are associated persons), the consideration in money for that supply shall be deemed to be an amount equal to the purchase price of those goods to that other person:

provided further that for the purposes of this subsection, the purchase price of any goods shall not be reduced by any amount of input tax deducted by the supplier or, as the case may be, any other person where the supplier and that other person are associated persons, pursuant to section 20(3).

(5)

Despite subsection (2), if a supply of goods and services is made under a credit contract, the consideration in money for the supply is treated as being the higher of the cash price of the goods and services and the price the supplier would have charged the purchaser if the purchaser had paid in full at the time the credit contract was entered into.

(5A)

In subsection (5),—

cash price has the same meaning as in section 5 of the Credit Contracts and Consumer Finance Act 2003

credit contract has the same meaning as in section 3 of the Credit Contracts Act 1981 immediately before the repeal of that Act.

(5B)

Despite subsection (5A), a person who is a party to an arrangement that is a credit contract but is not a credit contract under section 7 of the Credit Contracts and Consumer Finance Act 2003 may elect that the arrangement be treated under this section as not being a credit contract in relation to the person.

(5C)

Despite subsection (5A), a person who is a party to an arrangement that is not a credit contract but is a credit contract under section 7 of the Credit Contracts and Consumer Finance Act 2003 may elect that the arrangement be treated under this section as being a credit contract in relation to the person.

(6)

Where and to the extent that any supply of goods and services consists of the supply, to any individual, of domestic goods and services in a commercial dwelling, the value attributable to that part of that supply of domestic goods and services that is for a period in excess of 4 weeks shall be deemed to be reduced to an amount equal to 60% of the amount that would, if that part of that supply were chargeable with tax at the rate of 9%, be the value of that part of that supply of domestic goods and services:

provided that to the extent that any supply is a supply of domestic goods and services, and where that commercial dwelling is a residential establishment, and where the supplier and the recipient have agreed that that supply shall be for a period of or in excess of 4 weeks, or for a number of periods which in the aggregate will exceed 4 weeks, the value attributable to that supply of domestic goods and services shall, from the commencement of that supply, be deemed to be reduced to an amount equal to 60% of the amount that would, if that supply were chargeable with tax at the rate of 9%, be the value of that supply of domestic goods and services.

(7)

If goods and services are treated by section 21I(1) as being supplied by a person, the consideration in money for the supply is—

(a)

an amount equal to the taxable value of the fringe benefit as determined by sections CX 20, and RD 54 to RD 57 of the Income Tax Act 2007, if paragraph (b) does not apply; or

(b)

nil, if the person would not have a deduction under section 20(3) relating to the supply of the fringe benefit if the consideration in money for the supply were given by paragraph (a).

(7A)

If goods and services are deemed to be supplied by a person under section 5(3) or (3B), the consideration in money for the supply is treated as being the open market value of the supply. A supply of common property by a unit title body corporate has a zero value.

(7B)

If goods and services are treated as supplied by a person under section 5(23), the value of the supply is an amount equal to the consideration for the supply first made to the recipient.

(7C)

Where a redeliverer makes a supply of distantly taxable goods to a recipient under section 60E, the value of the supply is an amount equal to the consideration paid for the goods by the recipient.

(7D)

Where an operator of a marketplace makes a supply of remote services or distantly taxable goods under section 60C or 60D to a recipient who accepts an offer by the operator of a reduction in the price of the supply to the recipient, the supply is made for the reduced price.

(7E)

Where a person makes a supply of services to the recipient of a supply of goods that include distantly taxable goods, and the supply of services includes services (the related services) that relate to the distantly taxable goods, the consideration for the related services is part of the consideration for the supply of the distantly taxable goods if—

(a)

the consideration for the supply of the related services is determined by reference to the items included in the supply of distantly taxable goods; and

(b)

the supply of services is made or arranged or facilitated by the supplier or underlying supplier of the distantly taxable goods; and

(c)

the supply of related services is directly in connection with the distantly taxable goods or is of insurance of the goods; and

(d)

the supply of related services would be chargeable with tax at the rate of 0% in the absence of this subsection; and

(e)

the supply of related services and the supply of distantly taxable goods do not form a single supply.

(8)

Where goods and services are deemed to be supplied by a person under section 5(3) and the goods and services were acquired before 1 October 1986, the consideration in money for either supply shall be deemed to be the lesser of—

(a)

the cost of those goods and services to the supplier, including any input tax deduction claimed in respect of the supply of those goods and services to that supplier:

(b)

the open market value of that supply.

(9)

Where a supply of services is deemed to be made under the proviso to section 5(5), the consideration in money for the supply shall be deemed to be an amount equal to the amount referred to in paragraph (b) of that proviso as being retained or recoverable.

(10)

Notwithstanding anything in this section, where goods and services are, or are deemed to be, supplied by any public authority pursuant to section 5(6), the value of any such supply shall be an amount equal to any amount that is brought to charge as revenue from the Crown for the supply of outputs by the public authority.

(11)

Notwithstanding anything in this section, where goods and services are, or are deemed to be, supplied to any person by any local authority pursuant to section 5(7), the consideration in money for any such supply shall be an amount equal to any amount from time to time paid or payable by or on behalf of that person for that supply.

(12)

The consideration in money for the supply of services for—

(a)

racing betting or sports betting is treated as the amount received by TAB NZ or its agents, plus the net return of bets laid off by TAB NZ less the sum of all refunds and winning dividends; and

(b)

equalisator betting is treated as the amount received by a racing club.

(12A)

[Repealed]

(13)

In subsection (12), equalisator betting, TAB NZ, racing club, racing betting, and sports betting have the meanings set out in section 5(1) of the Racing Industry Act 2020.

(14)

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

amounts received − prizes

where—
(a): amounts received is the total of all amounts in money received in relation to the supply—
(i)
for gambling, by the person, society, licensed promoter, or organiser who under the Gambling Act 2003 conducts the gambling:
(ii)
for a prize competition, by the person who conducts the prize competition:
(b): prizes is the total amount of all prizes paid and payable in money in relation to the supply, reduced by the total amount of input tax for supplies for which the prizes are treated as being consideration.

(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—

amounts received from residents − prizes paid to residents.

(14C)

In the formula in subsection (14B),—

(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.

(15)

For the purposes of subsection (14), the terms gambling and New Zealand lottery have the meanings set out in section 4(1) of the Gambling Act 2003.

(15A)

If a supply is treated as having been made under section 5(11B), the consideration in money for the supply (less any amount paid out by the casino as winnings in respect of gambling or for the redemption of chips) must be treated—

(a)

as the amount of money (including cheques not collected) a person pays to the casino to purchase a chip or otherwise to participate in gambling played or conducted at a casino venue; or

(b)

as commission for participation in the gambling.

(15B)

For the purposes of subsection (15A), the terms casino venue, chip, and gambling have the meanings set out in section 4(1) of the Gambling Act 2003.

(15C)

If a non-resident makes a supply of services to a resident who is a member of the same group of companies under section IA 6 of the Income Tax Act 2007 as the supplier, or who is treated by section 56B as being a separate person from the supplier, and the supply is treated by sections 5B and 8(4B) as being made in New Zealand by the recipient of the supply, or section 20(3JC) applies, the value of the supply is determined as if the consideration for the supply did not include—

(a)

the amount of the consideration for the supply that represents salary or wages paid to an employee of—

(i)

the non-resident:

(ii)

a company that is in a wholly-owned group with the non-resident under section IA 6 of the Income Tax Act 2007; and

(b)

the amount of the consideration for the supply that represents interest incurred by—

(i)

the non-resident:

(ii)

a company that is in a wholly-owned group with the non-resident under section IA 6 of the Income Tax Act 2007.

(16)

[Repealed]

(16A)

[Repealed]

(17)

[Repealed]

(17A)

[Repealed]

(18)

Where a taxable supply is not the only matter to which a consideration relates, the supply shall be deemed to be for such part of the consideration as is properly attributable to it.

(19)

Subject to the foregoing provisions of this section where any supply is made for no consideration, the value of that supply shall be nil.

(20)

[Repealed]

Section 10(2)(b): substituted (with effect on 1 July 2010), on 29 August 2011, by section 237(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section 10(2B): inserted (with effect on 1 July 2010), on 29 August 2011, by section 237(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section 10(3): substituted, on 10 October 2000 (applying on and after 10 October 2000), by section 89(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 10(3): amended, on 3 April 2006 (applying for supplies made on or after 1 October 1986), by section 287(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 10(3): amended, on 1 January 2005, by section 148(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 10(3)(b): substituted, on 3 April 2006, by section 287(2) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 10(3)(c): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 10(3A): substituted, on 1 January 2005, by section 148(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 10(3A): amended, on 18 March 2019, by section 299(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section 10(3A)(a): repealed (with effect on 1 April 2011), on 18 March 2019, by section 299(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section 10(3AB): inserted, on 3 April 2006 (applying for supplies made on or after 1 October 1986), by section 287(3) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 10(3B): inserted, on 1 January 2005, by section 148(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 10(3C): inserted, on 1 January 2005, by section 148(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 10(3C): amended (with effect on 1 October 2016), on 18 March 2019, by section 299(3) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section 10(3C)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 10(3C)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 10(3D): inserted, on 1 January 2005, by section 148(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 10(3D): amended (with effect on 1 October 2016), on 18 March 2019, by section 299(4) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section 10(3D)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 10(3D)(b)(i): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 10(3E): inserted, on 1 January 2005, by section 148(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 10(3E): amended, on 1 December 2019, by section 13(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 10(4): substituted (with effect on 3 December 1985), on 8 August 1986, by section 8(4) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 10(4): amended, on 6 October 2009, by section 708 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 10(4) first proviso: amended, on 1 April 1993, by section 4 of the Goods and Services Tax Amendment Act 1993 (1993 No 10).

Section 10(5): substituted, on 10 October 2000 (applying on and after 10 October 2000), by section 89(4) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 10(5A): substituted, on 1 April 2005, by section 139 of the Credit Contracts and Consumer Finance Act 2003 (2003 No 52).

Section 10(5A) credit contract: substituted (with effect on 1 April 2005), on 3 April 2006, by section 287(4) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 10(5B): inserted (with effect on 1 April 2005), on 3 April 2006, by section 287(5) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 10(5C): inserted (with effect on 1 April 2005), on 3 April 2006, by section 287(5) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 10(6): substituted (with effect on 3 December 1985), on 8 August 1986, by section 8(6) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 10(6): amended, on 20 May 2010 (applying to supplies made on or after 1 October 2010), by section 46(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section 10(6): amended, on 1 July 1989 (applying to supplies made on and after 1 July 1989), by section 16(1) of the Finance Act 1989 (1989 No 13).

Section 10(6) proviso: amended, on 20 May 2010 (applying to supplies made on or after 1 October 2010), by section 46(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section 10(6) proviso: amended, on 1 July 1989 (applying to supplies made on and after 1 July 1989), by section 16(1) of the Finance Act 1989 (1989 No 13).

Section 10(7): substituted, on 18 December 2006 (applying for fringe benefits provided or granted on or after 18 December 2006), by section 213(1) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).

Section 10(7)(a): amended, on 1 April 2008, by section 272(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 10(7)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 10(7A): inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 89(6) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 10(7A): amended (with effect on 1 April 2014), on 24 February 2016, by section 275(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section 10(7A): amended (with effect on 26 February 2015), on 24 February 2016, by section 275(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section 10(7A): amended, on 1 April 2014, by section 124 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 10(7B): inserted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 9(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 10(7C): inserted, on 1 December 2019, by section 13(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 10(7D): inserted, on 1 December 2019, by section 13(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 10(7E): inserted, on 1 December 2019, by section 13(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 10(8): amended, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 9(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 10(8): amended, on 10 October 2000 (applying on and after 10 October 2000), by section 89(7) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 10(8)(a): amended, on 12 December 1995, by section 4(1) of the Goods and Services Tax Amendment Act (No 2) 1995 (1995 No 75).

Section 10(8)(a): amended (with effect on 3 December 1985), on 8 August 1986, by section 8(7)(b) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 10(10): substituted, on 10 April 1995, by section 5(1) of the Goods and Services Tax Amendment Act 1995 (1995 No 22).

Section 10(12): substituted, on 1 August 2003, by section 69(1) of the Racing Act 2003 (2003 No 3).

Section 10(12)(a): amended, on 1 August 2020, by section 129 of the Racing Industry Act 2020 (2020 No 28).

Section 10(12A): repealed, on 1 August 2003, by section 69(1) of the Racing Act 2003 (2003 No 3).

Section 10(13): substituted, on 1 August 2003, by section 69(1) of the Racing Act 2003 (2003 No 3).

Section 10(13): amended, on 1 August 2020, by section 129 of the Racing Industry Act 2020 (2020 No 28).

Section 10(14): replaced, on 17 July 2013, by section 123 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 10(14)(b): amended, on 30 March 2017 (with effect on 1 April 2012), by section 351 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 10(14B): inserted, on 1 October 2016, by section 57(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 10(14C): inserted, on 1 October 2016, by section 57(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 10(14D): inserted, on 1 October 2016, by section 57(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 10(14E): inserted, on 1 October 2016, by section 57(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 10(14F): inserted, on 1 October 2016, by section 57(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 10(15): substituted, on 1 July 2004, by section 374 of the Gambling Act 2003 (2003 No 51).

Section 10(15A): substituted, on 1 July 2004, by section 374 of the Gambling Act 2003 (2003 No 51).

Section 10(15B): substituted, on 1 July 2004, by section 374 of the Gambling Act 2003 (2003 No 51).

Section 10(15C): inserted, on 1 January 2005, by section 148(3) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 10(15C): amended, on 1 October 2016, by section 57(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 10(15C): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 10(15C)(a)(ii): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 10(15C)(b)(ii): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 10(16): repealed, on 10 October 2000 (applying on 10 October 2000), by section 89(9) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 10(16A): repealed, on 10 October 2000 (applying on 10 October 2000), by section 89(9) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 10(17): repealed, on 10 October 2000 (applying on 10 October 2000), by section 89(9) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 10(17A): repealed, on 10 October 2000 (applying on 10 October 2000), by section 89(9) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 10(20): repealed, on 10 October 2000 (applying on 10 October 2000), by section 89(9) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

10B Estimating value of goods in supply for treatment as distantly taxable goods

(1)

The value of an item of goods is determined under this section for the purposes of determining, when a supply of the goods is made, whether the goods are distantly taxable goods.

(2)

The value of an item of goods under this section is the consideration for the supply of the item reduced by the total amount included in that consideration for—

(a)

the cost of transport and insurance charges,—

(i)

for goods that are imported into New Zealand, for the period beginning when the item leaves the country or territory from which the goods are supplied and ending when the item is delivered in New Zealand:

(ii)

for goods that are not imported into New Zealand, for the period beginning when the item leaves its place of origin and ending when the item is delivered in New Zealand:

(b)

the amount of tax that would be chargeable on the supply of the item under section 8(1) if the supply were made by the supplier as a resident and for the same consideration:

(c)

duty payable on the item under the Customs and Excise Act 2018.

(3)

The supplier of an item of goods may use a reasonable estimate of the amount referred to in subsection (2), based on the information available to the supplier at the time of the supply.

Section 10B: inserted, on 1 December 2019, by section 14 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 10B(2)(b): replaced (with effect on 1 December 2019), on 23 March 2020, by section 244 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).

10C Election by supplier that supplies of higher-value goods be supplies of distantly taxable goods

(1)

A person (the electing supplier) who is a non-resident, or is a supplier of goods under section 60C, 60D, or 60E, may make an election under this section for a taxable period (the initial period) beginning after the election if—

(a)

the Commissioner has not, before the election, cancelled under subsection (5)(b) an election under this section by the electing supplier; and

(b)

the electing supplier notifies the Commissioner of the election before the initial period; and

(c)

the electing supplier meets the requirements of subsection (2).

(2)

An electing supplier may make an election under subsection (1) if—

(a)

notifying the electing supplier of the date on which the election is cancelled.

Section 10C: inserted, on 1 December 2019, by section 14 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 10C(1)(b): amended, on 23 March 2020, by section 245(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).

Section 10C(1)(c): inserted, on 23 March 2020, by section 245(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).

Section 10C(2): amended, on 23 March 2020, by section 245(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).

Section 10C(2)(a): amended, on 23 March 2020, by section 245(4) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).

Section 10C(2)(b): amended, on 23 March 2020, by section 245(5) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).

Section 10C(3): amended, on 23 March 2020, by section 245(6) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).

11 Zero-rating of goods

(2)

For the purpose of subsection (1)(n), if a person is both a refiner of and a dealer in fine metal, the new fine metal is treated as having been supplied to the dealer at a time immediately before the making of an exempt supply of the new fine metal.

(3)

Subsection (1)(a) to (1)(l) do not apply to a supply of goods by a registered person if—

(a)

the registered person, or another person associated with the registered person, has deducted, under section 20(3), input tax as defined in section 3A(1)(c) in respect of the goods; or

(b)

the goods have been or will be reimported into New Zealand by the supplier.

(3B)

Subsection (3)(a) does not apply to a supply of goods if the recipient gives the registered person at or before the time of the supply an undertaking, and records the undertaking in a document, that neither the recipient nor an associated person will cause the goods to be reimported into New Zealand in a condition that is substantially the same as the condition the goods were in when the supply was charged with tax under subsection (1)(a) to (1)(l).

(3C)

Despite subsection (3B), a registered person is treated as having supplied goods in the course or furtherance of a taxable activity and must be charged with tax at the rate specified in section 8 if—

(a)

limitations on dealings in and the uses to which the boat or aircraft will be put before export; and

(iii)

the proposed and actual date of export.

(8)

The Commissioner may extend the 60-day period if the Commissioner is satisfied, upon the written application of the supplier, that the export of the boat or aircraft within the period is or has been prevented by circumstances that are beyond the control of the supplier and the recipient or that relate to supplies to which subsection (1)(k) or section 11A(1)(ib) applies.

(8B)

Whether a supply of goods is zero-rated under subsection (1)(mb) is determined at the time of settlement of the transaction relating to the supply.

(8C)

Despite subsections (1)(mb) and (8B), a supplier may choose to apply the provisions of this Act applying before the changes made by the Taxation (GST and Remedial Matters) Act 2010 if they enter into a binding agreement before 1 April 2011 for which the time of supply is on or after that date.

(8D)

For the purposes of the zero-rating of land rules,—

(a)

a supply that wholly or partly consists of an assignment or surrender of an interest in land is a supply under subsection (1)(mb) if it meets the requirements set out in that subsection:

(ab)

a supply that wholly or partly consists of a surrender of a right to a payment under an agreement for the supply of an interest in land is a supply under subsection (1)(mb) if the supply of the interest in land meets the requirements set out in that subsection:

(b)

a supply that is wholly or partly of an interest in land that meets the requirements of subsection (1)(mb), and is made under an agreement providing for periodic payments for supplies of the interest in land, is not a supply under that subsection for the purposes of a payment for the supply paid or payable under the agreement if—

(i)

each amount payable under the agreement that is not a regular payment is anticipated, when the agreement is entered, to be 25% or less of the consideration specified in the agreement (the term consideration) for all supplies of the interest in land during the period referred to in subparagraph (iv); and

(ii)

the payment, if not a regular payment, is 25% or less of the term consideration; and

(iii)

each amount that is paid or payable before the payment, and is not a regular payment, is 25% or less of the term consideration; and

(iv)

the term consideration is treated as being the amount of consideration calculated under the agreement for supplies anticipated to be made during a period that is the longer of 1 year and the shortest possible fixed term of the agreement:

(c)

a supply by a person who is the lessee under a lease agreement is a supply under subsection (1)(mb), despite paragraph (b), if—

(i)

the supply is to a person who is not the lessor supplying an interest in land under the lease agreement to the lessee; and

(ii)

the supply is made under an arrangement that wholly or partly consists of the lessee’s surrender of the interest in land to the lessor, or the lessor’s cancellation of the supply of the interest in land to the lessee, and the supply by the lessor of the interest in land under another lease agreement to a person other than the lessee; and

(iii)

the supplies of the interest in land under the lease agreements meet the requirements set out in subsection (1)(mb):

(d)

a registered person who is a non-profit body that is resident in New Zealand and acquires goods is treated, to the extent to which the person acquires the goods with an intention of using them other than for making exempt supplies, as acquiring the goods with the intention of using them in the course or furtherance of the taxable activity of the registered person, except if the registered person uses the goods solely in the course or furtherance of an activity for which the registered person makes an election under section 20(3KB).

(9)

For the purpose of this section—

aircraft has the meaning set out in section 2 of the Civil Aviation Act 1990

consumable stores means—

(a)

goods that passengers and crew on board an aircraft or a ship have available to consume; and

(b)

goods necessary to operate or maintain an aircraft or a ship, including fuel and lubricants but excluding spare parts and equipment

fishing ship has the meaning set out in section 2 of the Maritime Transport Act 1994

foreign-going ship means a ship on a voyage, or going, to a destination outside New Zealand, other than a pleasure craft or a fishing ship

New Zealand fisheries waters has the meaning set out in section 2 of the Fisheries Act 1996

pleasure craft has the meaning set out in section 2 of the Maritime Transport Act 1994

sealed bag system means a system under which a supplier—

(a)

is licensed to operate an export warehouse; and

(b)

may, with the authorisation of the chief executive of the New Zealand Customs Service, and subject to any conditions that the chief executive may specify, supply goods in a sealed bag to individuals intending to travel overseas within 5 days beginning on the day of the time of supply; and

(c)

must provide evidence that the goods have been exported from New Zealand within 5 days beginning on the day of the time of supply, and if conditions have been specified by the chief executive of the New Zealand Customs Service, in accordance with those conditions

ship has the meaning set out in section 2 of the Maritime Transport Act 1994.

Section 11: substituted, on 10 October 2000 (applying on and after 10 October 2000), by section 90(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 11(1)(a): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 11(1)(b): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 11(1)(d): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 11(1)(e): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 11(1)(eb): inserted (with effect on 17 May 2007), on 19 December 2007, by section 273(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 11(1)(eb)(i): replaced, on 30 March 2022, by section 10 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 11(1)(eb)(ii): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 11(1)(f): amended, on 27 March 2001 (applying on and after 10 October 2000), by section 63(1) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).

Section 11(1)(g): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 11(1)(g)(iii): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 11(1)(h)(i): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 11(1)(h)(ii): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 11(1)(j): substituted, on 3 April 2006 (applying for supplies made on or after 19 May 2005), by section 288(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 11(1)(j)(ii): amended, on 1 December 2019, by section 15(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 11(1)(jb): inserted, on 1 December 2019, by section 15(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 11(1)(k): amended, on 30 March 2017, by section 352(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 11(1)(ka): inserted, on 24 October 2001 (applying on and after 24 October 2001), by section 240(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).

Section 11(1)(ka): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 11(1)(l): substituted, on 24 October 2001 (applying on and after 24 October 2001), by section 240(2) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).

Section 11(1)(l): amended (with effect on 24 October 2001), on 19 December 2007, by section 273(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 11(1)(l)(i): substituted (with effect on 24 October 2001), on 19 December 2007, by section 273(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 11(1)(l)(ii): substituted (with effect on 24 October 2001), on 19 December 2007, by section 273(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 11(1)(l)(iib): inserted (with effect on 24 October 2001), on 19 December 2007, by section 273(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 11(1)(l)(iv): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 11(1)(m)(i): replaced, on 2 June 2016, by section 185(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 11(1)(mb): inserted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 10(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 11(1)(n): amended, on 1 January 2009 (applying to supplies made on or after 1 January 2009), by section 79(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 11(1)(o): substituted (with effect on 1 July 2010), on 21 December 2010, by section 10(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 11(1)(o)(ii): amended, on 1 April 2014, by section 125 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 11(1)(oa): inserted, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 11(1)(p): inserted, on 1 April 2014, by section 125 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 11(1)(p)(ii): amended, on 30 June 2014, by section 188(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section 11(3B): inserted, on 6 October 2009, by section 709 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 11(3B): amended, on 2 June 2016, by section 185(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 11(3C): inserted, on 6 October 2009, by section 709 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 11(3D): inserted, on 6 October 2009, by section 709 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 11(4): amended (with effect on 17 May 2007), on 19 December 2007, by section 273(3)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 11(4): amended (with effect on 17 May 2007), on 19 December 2007, by section 273(3)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 11(5): amended, on 2 June 2016, by section 185(3) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 11(8): replaced, on 30 March 2017, by section 352(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 11(8B): inserted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 10(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 11(8C): inserted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 10(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 11(8C): amended (with effect on 1 April 2011), on 29 August 2011 (applying to supplies made on or after 1 April 2011), by section 238(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section 11(8D): replaced (with effect on 30 June 2014), on 30 March 2017, by section 352(5) (and see section 352(8)) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 11(8D)(a): amended (with effect on 30 June 2014), on 30 March 2021, by section 184(1)(a) (and see section 184(5) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).

Section 11(8D)(a): amended (with effect on 30 June 2014), on 30 March 2021, by section 184(1)(b) (and see section 184(5) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).

Section 11(8D)(ab): inserted (with effect on 1 April 2011), on 30 March 2017, by section 352(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 11(8D)(ab): amended (with effect on 30 June 2014), on 30 March 2021, by section 184(2) (and see section 184(5) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).

Section 11(8D)(b): replaced (with effect on 1 April 2011), on 30 March 2017, by section 352(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 11(8D)(b): amended (with effect on 30 June 2014), on 30 March 2021, by section 184(3) (and see section 184(5) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).

Section 11(8D)(c)(ii): amended (with effect on 30 June 2014), on 30 March 2021, by section 184(4)(a) (and see section 184(5) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).

Section 11(8D)(c)(ii): amended (with effect on 30 June 2014), on 30 March 2021, by section 184(4)(b) (and see section 184(5) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).

Section 11(8D)(c)(iii): amended, on 30 March 2017, by section 352(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 11(8D)(d): inserted, on 30 March 2017, by section 352(7) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 11(8D)(d): amended, on 18 March 2019, by section 300 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section 11(9) consumable stores: inserted, on 24 October 2001 (applying on and after 24 October 2001), by section 240(3) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).

Section 11(9) consumable stores paragraph (a): amended (with effect on 24 October 2001), on 19 December 2007, by section 273(4) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 11(9) foreign-going ship: substituted (with effect on 24 October 2001), on 19 December 2007, by section 273(5) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 11(9) pleasure craft: inserted, on 24 October 2001 (applying on and after 24 October 2001), by section 240(5) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).

Section 11(9) ship: added, on 24 October 2001 (applying on and after 24 October 2001), by section 240(6) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).

11A Zero-rating of services

(ii)

other than an emissions unit; and

(iii)

verified to an internationally recognised standard; or

(x)

the services are remote services to which section 8(3)(c) applies that are provided to a registered person and the supplier has chosen under section 8(4D) to treat the supply as made in New Zealand.

(1B)

Subsection (1)(j) does not apply to a supply of services that is treated by section 8(4B) as being made in New Zealand unless the nature of the services is such that the services can be physically received at no time and place other than the time and place at which the services are physically performed.

(1C)

For the purposes of subsection (1)(jb), the services that are the arranging of the underlying services may include more than 1 supply if the supplies are made to facilitate the supply of the underlying services.

(1D)

Subsection (1)(a), (c), (cb), (d), and (f) do not apply to a supply, by a registered person who is a redeliverer and supplier under section 60E, of services in relation to a supply of distantly taxable goods that is charged with tax under section 8 at a rate of more than zero.

(2)

Subsection (1)(k) and (1)(l) do not apply to a supply of services under an agreement that is entered into, whether directly or indirectly, with a person (person A) who is a non-resident if—

(a)

the performance of the services is, or it is reasonably foreseeable at the time the agreement is entered into that the performance of the services will be, received in New Zealand by another person (person B), including—

(i)

an employee of person A; or

(ii)

if person A is a company, a director of the company; and

(b)

it is reasonably foreseeable, at the time the agreement is entered into, that person B will not receive the performance of the services in the course of making taxable or exempt supplies.

(3)

For the purpose of subsection (1)(k), (1)(l) and (1)(ma), and subsection (1)(n) as modified by subsection (4)(b), outside New Zealand, for a company or an unincorporated body that is not resident, includes a minor presence in New Zealand, or a presence that is not effectively connected with the supply.

(3B)

For the purpose of subsection (1)(k), outside New Zealand, for a natural person, includes a minor presence in New Zealand that is not directly in connection with the supply.

(4)

Subsection (1)(n) applies only to the extent that—

(a)

the rights are for use outside New Zealand; or

(b)

the services are supplied to a person who is a non-resident and who is outside New Zealand when the services are performed.

(5)

This section does not apply to supplies of telecommunications services.

(6)

The availability of a deduction under subsection (1)(q) and (r) must be determined using a method allowed by section 20E.

(7)

Subsection (1)(x) does not apply to a supply of services for which the supplier subsequently makes an election under section 24(5B).

Section 11A: inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 90(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 11A(1)(b): amended, on 1 June 2004, by section 41(3) of the Civil Aviation Amendment Act 2004 (2004 No 8).

Section 11A(1)(bb): inserted, on 26 March 2003, by section 156(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).

Section 11A(1)(c): amended, on 30 March 2022, by section 11 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 11A(1)(cb): inserted, on 25 November 2003 (applying to supplies made on or after 25 November 2003), by section 149(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 11A(1)(cb)(ii): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 11A(1)(d): amended, on 25 November 2003 (applying to supplies made on or after 25 November 2003), by section 149(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 11A(1)(e): replaced, on 1 April 2017, by section 353(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 11A(1)(i): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 11A(1)(ib): inserted, on 30 March 2017, by section 353(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 11A(1)(j): replaced (with effect on 1 October 2016), on 30 March 2017, by section 353(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 11A(1)(jb): inserted (with effect on 1 October 2016), on 30 March 2017, by section 353(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 11A(1)(jbb): inserted (with effect on 1 October 2016), on 26 June 2019, by section 16(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 11A(1)(jc): inserted (with effect on 1 October 2016), on 30 March 2017, by section 353(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 11A(1)(k): amended, on 25 November 2003, by section 149(3) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 11A(1)(k)(i): replaced, on 1 April 2017, by section 353(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 11A(1)(k)(ii): replaced, on 1 April 2017, by section 353(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 11A(1)(k)(iii): inserted, on 1 April 2017, by section 353(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 11A(1)(l): amended, on 25 November 2003, by section 149(3) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 11A(1)(m): substituted, on 25 November 2003, by section 149(4) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 11A(1)(m)(i): amended (with effect on 17 May 2007), on 19 December 2007, by section 274 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 11A(1)(maa): inserted, on 30 June 2014, by section 189(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section 11A(1)(ma): inserted, on 17 October 2002 (applying on and after 1 August 2002), by section 100(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).

Section 11A(1)(ma)(ii): amended, on 25 November 2003, by section 149(3) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 11A(1)(p): amended, on 1 January 2005, by section 149(5) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 11A(1)(q): added, on 1 January 2005, by section 149(5) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 11A(1)(r): added, on 1 January 2005, by section 149(5) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 11A(1)(r): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 11A(1)(r)(ii): amended, on 1 January 2009 (applying to supplies made on or after 1 January 2009), by section 80(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 11A(1)(s): substituted (with effect on 1 July 2010), on 7 September 2010, by section 191(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section 11A(1)(t): added, on 1 January 2009 (applying to supplies made on or after 1 January 2009), by section 80(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 11A(1)(u): substituted (with effect on 1 July 2010), on 21 December 2010, by section 11 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 11A(1)(v): repealed (with effect on 1 July 2010), on 7 September 2010, by section 191(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section 11A(1)(w): added, on 1 April 2010, by section 710(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 11A(1)(w)(iii): amended, on 1 October 2016, by section 58(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 11A(1)(x): inserted, on 1 October 2016, by section 58(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 11A(1B): substituted, on 1 January 2005, by section 145(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).

Section 11A(1C): inserted (with effect on 1 October 2016), on 30 March 2017, by section 353(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 11A(1D): inserted, on 1 December 2019, by section 16(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 11A(2): amended, on 25 November 2003, by section 149(7) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 11A(3): amended, on 17 October 2002 (applying on and after 1 August 2002), by section 100(2) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).

Section 11A(3B): inserted, on 30 June 2014, by section 189(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section 11A(4)(b): amended, on 25 November 2003, by section 149(7) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 11A(5): added, on 1 July 2003, by section 156(2) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).

Section 11A(6): added, on 1 January 2005, by section 145(2) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).

Section 11A(7): inserted, on 1 October 2016, by section 58(3) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

11AB Zero-rating of telecommunications services

(1)

A supply of services that is chargeable with tax under section 8 must be charged at the rate of 0% if—

(a)

the services are the supply of telecommunications services to an overseas telecommunications supplier by a telecommunications supplier who is a resident; or

(b)

the services are the supply of telecommunications services to a person, not being an overseas telecommunications supplier, for a telecommunications service that is initiated outside New Zealand under section 8(9); or

(c)

the services are inbound mobile roaming services supplied to a non-resident.

(2)

Subsection (1)(b) does not apply to outbound mobile roaming services.

Section 11AB: inserted, on 1 July 2003, by section 157 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).

Section 11AB(1)(a): amended, on 25 November 2003, by section 150(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 11AB(1)(b): amended, on 1 April 2022, by section 185(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).

Section 11AB(1)(b): amended (with effect on 1 July 2003), on 25 November 2003, by section 150(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 11AB(1)(c): inserted, on 1 April 2022, by section 185(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).

Section 11AB(2): inserted, on 1 April 2022, by section 185(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).

11B Zero-rating of some supplies by territorial authorities, some supplies involving contributions to local authorities

(1)

A supply of services that is chargeable with tax under section 8 must be charged at the rate of 0% if the supplier is a territorial authority and the consideration for the supply is proceeds from the local authorities petroleum tax paid to the supplier under section 198 of the Local Government Act 1974.

(1B)

If a supply under section 5(7B) of goods and services by a local authority to a registered person is chargeable with tax under section 8, the supply must be charged at the rate of 0% to the extent that the contribution made by the registered person to the local authority consists of land.

(1C)

If a supply under section 5(7C) of goods and services by a person to a local authority is chargeable with tax under section 8, the supply must be charged at the rate of 0% if the local authority is a registered person.

(1D)

[Repealed]

(1E)

[Repealed]

(2)

For the purpose of subsection (1)—

local authorities petroleum tax is local authorities petroleum tax levied in accordance with Part 11 of the Local Government Act 1974

territorial authority means a territorial authority within the meaning of the Local Government Act 2002.

Section 11B: inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 90(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 11B heading: amended, on 25 November 2003, by section 151(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 11B(1B): inserted, on 25 November 2003 (applying to contributions that are made on or after 25 November 2003), by section 151(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 11B(1C): inserted, on 25 November 2003 (applying to contributions that are made on or after 25 November 2003), by section 151(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 11B(1D): repealed, on 6 August 2010, by section 5(3) of the Affordable Housing: Enabling Territorial Authorities Act Repeal Act 2010 (2010 No 101).

Section 11B(1E): repealed, on 6 August 2010, by section 5(3) of the Affordable Housing: Enabling Territorial Authorities Act Repeal Act 2010 (2010 No 101).

Section 11B(2) territorial authority: substituted, on 1 July 2003, by section 262 of the Local Government Act 2002 (2002 No 84).

11C Treatment of supplies by operators of loyalty programmes

(1)

This section applies when an operator of a loyalty programme makes a supply of services by entering into an arrangement (a loyalty transaction) with another person (the purchaser) through which the operator receives consideration for providing loyalty points to a third person as directed by the purchaser.

(2)

the time of supply has been deferred under section 9(9).

(6)

If the operator has a partner in an associated loyalty programme, the second requirement is still treated as met if, in addition to those requirements, loyalty points supplied by the operator are able to be redeemed for reward by the partner.

Section 11C: inserted, on 6 October 2009, by section 711 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

12 Imposition of goods and services tax on imports

(1)

Notwithstanding anything in this Act, a tax to be known as goods and services tax shall be levied, collected, and paid in accordance with the provisions of this section at the rate of 15% on the importation of goods (not being fine metal) into New Zealand, being goods that are—

(a)

entered therein, or delivered, for home consumption under the Customs and Excise Act 2018; or

(b)

entered for delivery to a manufacturing area licensed under section 59 of the Customs and Excise Act 2018; or

(c)

(d)

the amount of levy paid or payable on goods under the Climate Change Response Act 2002.

(3)

Subject to this section, tax levied under subsection (1) shall be collected and paid in accordance with the Customs and Excise Act 2018.

(4)

The following provisions shall apply to the collection, payment, and enforcement of goods and services tax levied under subsection (1):

the recipient is either not a registered person, or is a registered person but is not entitled to make an input tax deduction under section 20(3) in respect of the imported goods; and

(iii)

the person who imported the goods exports the goods—

(A)

in the case of goods with the wrong specifications, within 2 months after their importation, or such longer period not exceeding 12 months after their importation as may be approved by the Customs; or

(B)

in the case of faulty goods, within 12 months after their importation; and

(e)

reference numbers 40, 45, 70, 75, 80, 81, and 82 of Part 2 of the Tariff (as defined in section 2(1) of the Tariff Act 1988) if—

(i)

the goods are entitled to be entered under any of these reference numbers; or

(ii)

the goods are entitled to be entered duty free under Part 1 of the Tariff (as so defined), but would have been entitled to be entered under any of these reference numbers if the goods had been dutiable under Part 1 of the Tariff (as so defined).

(f)

[Repealed]

(5)

No liability to goods and services tax shall arise under any provision of the Customs and Excise Act 2018 by virtue of the operation of subsection (3) or subsection (4).

(6)

For the purposes of this section—

(a)

the terms fine metal, New Zealand, person, and registered person have the same meanings as defined in section 2:

(b)

the term taxable activity has the same meaning as defined in section 6.

Section 12: substituted, on 1 October 1996, by section 289(1) of the Customs and Excise Act 1996 (1996 No 27).

Section 12(1): amended, on 20 May 2010 (applying to the importation of goods on or after 1 October 2010), by section 47(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section 12(1)(a): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 12(1)(b): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 12(1)(c): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 12(1A): inserted, on 27 September 2001, by section 3 of the Goods and Services Tax Amendment Act 2001 (2001 No 68).

Section 12(1A): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 12(1B): inserted, on 1 December 2019, by section 17 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 12(1B): amended, on 23 March 2020, by section 246 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).

Section 12(1C): inserted, on 1 December 2019, by section 17 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 12(2)(a): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 12(2)(b): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 12(2)(c): amended, on 1 January 2013, by section 103 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 12(2)(d): inserted, on 1 January 2013, by section 103 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 12(3): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 12(4)(a): replaced, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 12(4)(b): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 12(4)(c): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 12(4)(c) proviso: amended, on 10 October 2000 (applying on and after 10 October 2000), by section 91(2) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 12(4)(d): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 12(4)(d)(ii): amended, on 21 June 2005, by section 156 of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).

Section 12(4)(e): substituted, on 1 January 2010, by section 9(6) of the Tariff Amendment Act 2009 (2009 No 62).

Section 12(4)(f): repealed, on 10 October 2000 (applying on and after 10 October 2000), by section 91(3) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 12(5): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

12B Reimbursement of tax by supplier if recipient charged tax on both supply and importation

(1)

This section applies if a registered person makes a supply of goods, that involves the importation of the goods into New Zealand and is treated as being a supply of distantly taxable goods charged with tax at a rate of more than zero, and receives consideration for the supply that includes an amount as tax charged under section 8 on the supply.

(2)

The registered person must reimburse the recipient of the supply for the amount received as tax charged under section 8 if the supplier receives a request from the recipient and a declaration from the recipient, or other confirmation, that the amount of tax charged under section 12 on the importation was paid when the goods were imported.

Section 12B: inserted, on 1 December 2019, by section 18 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

13 Imposition of goods and services tax on goods liable to excise duty and supplied at in bond prices

[Repealed]

Section 13: repealed, on 1 October 1996, by section 289(1) of the Customs and Excise Act 1996 (1996 No 27).

14 Exempt supplies

(1)

The following supplies of goods and services shall be exempt from tax:

(a)

the supply of any financial services (together with the supply of any other goods and services, supplied by the supplier of those financial services, which are reasonably incidental and necessary to that supply of financial services), not being a supply referred to in subsection (1B):

(i)

[Repealed]

(ii)

[Repealed]

(b)

the supply by any non-profit body of any donated goods and services:

(c)

the supply of accommodation in any dwelling by way of—

(i)

hire; or

(ii)

a service occupancy agreement; or

(iii)

a licence to occupy:

(ca)

the supply of leasehold land by way of rental (not being a grant or sale of the lease of that land) to the extent that that land is used for the principal purpose of accommodation in a dwelling erected on that land:

(cb)

the supply of property by way of lease that is to be used for the principal purpose of accommodation in a dwelling by any person, other than a registered person in the course or furtherance of a taxable activity:

(d)

the supply, being a sale, by any registered person in the course or furtherance of any taxable activity of—

(i)

any dwelling; or

(ii)

the reversionary interest in the fee simple estate of any leasehold land,—

that has been used by the registered person for a period of 5 years or more before the date of the supply exclusively for the making of any supply or supplies referred to in paragraph (c), (ca), or (cb):

(e)

a penalty imposed on unpaid rates under the Local Government (Rating) Act 2002:

(c)

a postponement fee, or a part of a postponement fee, that is imposed under section 88 of the Local Government (Rating) Act 2002 and that relates to financial costs of the local authority arising from a postponement of rates.

Section 14(1)(a): substituted, on 19 December 1989 (applying to supplies made on or after 19 December 1989), by section 8(1) of the Goods and Services Tax Amendment Act (No 2) 1989 (1989 No 152).

Section 14(1)(a): amended, on 3 April 2006, by section 289(1)(a) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 14(1)(a)(i): repealed, on 3 April 2006, by section 289(1)(b) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 14(1)(a)(ii): repealed, on 3 April 2006, by section 289(1)(b) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 14(1)(c): substituted, on 1 August 1990 (applying to supplies made on or after 1 August 1990), by section 6(1) of the Goods and Services Tax Amendment Act 1990 (1990 No 64).

Section 14(1)(ca): inserted (with effect on 3 December 1985), on 8 August 1986, by section 12(1) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 14(1)(cb): inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 92(3) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 14(1)(d): substituted, on 1 August 1990 (applying to supplies made on or after 1 August 1990), by section 6(2) of the Goods and Services Tax Amendment Act 1990 (1990 No 64).

Section 14(1)(d): amended, on 26 June 2019, by section 19 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 14(1)(e): added (with effect on 3 December 1985), on 8 August 1986, by section 12(3) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 14(1)(e): amended, on 10 October 2000 (applying on and after 10 October 2000), by section 92(4) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 14(1B): inserted, on 3 April 2006 (applying in relation to the insertion of section 14(1B)(b) for supplies of financial services that are made on or after 3 April 2006), by section 289(2) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 14(2): added, on 10 October 2000 (applying on and after 10 October 2000), by section 92(5) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 14(2): amended, on 2 June 2016, by section 186 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 14(3): substituted, on 25 November 2003 (applying to an amount of penalty, interest, charge or fee that is imposed on or after 1 July 2003), by section 152(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Part 3 Returns and payment of tax

15 Taxable periods

(1)

A registered person’s taxable period must be one of the following or a period described in section 15E(2) that is equivalent to one of the following:

(a)

a 6-month period, if subsection (2) applies:

(b)

a 2-month period:

(c)

a 1-month period, if subsection (3) or (4) applies.

(2)

A person’s taxable period may be a 6-month period if the person applies to the Commissioner to pay on that basis and—

(a)

the person’s taxable supplies in a 12-month period are no more, and are not likely to be more, than $500,000:

(b)

the person makes 80% or more of the person’s taxable supplies for an income year during a period of 6 months or less that ends with, or less than 1 month before, the end of the income year and has not had a 6-month period as a taxable period under this paragraph in the 24-month period before the application.

(3)

A person’s taxable period may be a 1-month period if the person applies to the Commissioner to pay on that basis.

(4)

A person’s taxable period must be a 1-month period if the person’s taxable supplies in a 12-month period are more, or are likely to be more, than $24,000,000.

(5)

For the purposes of subsections (2) and (4),—

(a)

the 12-month period is a period that starts on the first day of a month and ends on the last day of a month or is a period of approximately 12 months consisting of taxable periods approved for the person and described in section 15E(2):

(b)

the amount of a person’s taxable supplies does not include the amount of taxable supplies arising as part of—

(i)

the ending, including a premature ending, of a taxable activity carried on by the person:

(ii)

a substantial and permanent reduction in the size or scale of a taxable activity carried on by the person:

(iii)

the replacement of plant or a capital asset used in a taxable activity carried on by the person:

(c)

the Governor-General, from time to time, may declare by Order in Council another amount as the limit applying to the value of a person’s taxable supplies.

(6)

Despite subsections (1) to (4), the taxable period of a non-resident supplier whose only supplies are supplies of distantly taxable goods or remote services to which section 8(3)(c) applies, is a 3-month period, based on a first quarter ending on 31 March.

(7)

Despite subsection (6), a non-resident supplier of distantly taxable goods that becomes a registered person in the period beginning on 1 December 2019 and ending on 31 December 2019 has a first taxable period of 1 December 2019 to 31 March 2020.

(8)

An order under subsection (5)(c) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

See secondary legislation made under this Act (if published on this website)

Legislation Act 2019 requirements for secondary legislation made under this section
Publication	PCO must publish it on the legislation website and notify it in the Gazette	LA19 s 69(1)(c)
Presentation	The Minister must present it to the House of Representatives	LA19 s 114, Sch 1 cl 32(1)(a)
Disallowance	It may be disallowed by the House of Representatives	LA19 ss 115, 116
This note is not part of the Act.

Section 15: substituted, on 1 October 2007, by section 291(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 15(1): amended, on 30 March 2022, by section 13(1) (and see section 13(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 15(2): replaced, on 30 March 2017, by section 354 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 15(5)(a): amended, on 30 March 2022, by section 13(2) (and see section 13(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 15(6): replaced, on 1 April 2017, by section 59(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 15(6): amended, on 1 December 2019, by section 20(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 15(7): inserted, on 1 December 2019, by section 20(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 15(8): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

15A Change in registered person’s taxable period

[Repealed]

Section 15A: repealed, on 1 October 2007, by section 291(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

15AB Transitional provision: alignment of taxable periods with balance dates

[Repealed]

Section 15AB: repealed, on 1 October 2007, by section 291(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

15B Taxable periods aligned with balance dates

(1)

if the person has an income year that coincides with the tax year or is not required to provide a return of income for the tax year, 31 March:

(c)

if the person is a non-resident company that does not have a fixed establishment in New Zealand, 31 March.

Section 15B: inserted, on 1 October 2007, by section 291(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 15B(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 15B(4B): inserted, on 30 March 2022, by section 14(1) (and see section 14(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

15C Changes in taxable periods

(1)

A person to whom section 15(1)(b) or (c) applies may change the person’s taxable period to a 6-month period, or to an equivalent period described in section 15E(2), if the person meets the requirements of section 15(2).

(2)

A person to whom section 15(1)(a) applies, who does not meet the requirement of section 15(2)(b) and fails to meet the requirement of section 15(2)(a) in relation to a 12-month period, is required to change the person’s taxable period at the end of the taxable period ending on or after the end of the 12-month period, if subsection (2B) does not apply.

(2B)

A person who fails to meet the requirement of section 15(2)(a) in relation to a 12-month period is relieved from the requirement under subsection (2) to change the person’s taxable period if the person—

(a)

is likely to meet the requirement of section 15(2)(a) in relation to the following 12-month period; and

(b)

is not relieved by this subsection from a requirement under subsection (2) arising from a failure to meet the requirement of section 15(2)(a) in relation to the preceding 12-month period.

(3)

A person to whom section 15(1)(a) applies may apply to the Commissioner, in a way acceptable to the Commissioner, to change the person’s taxable period to a 2-month period, or to an equivalent period described in section 15E(2).

(3B)

A person to whom section 15(1)(a) or (b) applies may apply to the Commissioner, in a way acceptable to the Commissioner, to change the person’s taxable period to a 1-month period, or to an equivalent period described in section 15E(2).

(3C)

A person to whom section 15(1)(c) applies may apply to the Commissioner, in a way acceptable to the Commissioner, to change the person’s taxable period to a 2-month period, or to an equivalent period described in section 15E(2), unless section 15(4) applies.

(4)

A person whose taxable period is based on a 6-month or 2-month cycle is treated as having changed to a 1-month cycle if—

(a)

the threshold in section 15(4) applies at the end of a taxable period to the person’s taxable supplies; and

(b)

the person has not notified the Commissioner of a change of status under section 53(1)(ca) before the end of the next taxable period.

(5)

A return provided after a change in taxable period must not include amounts for a period for which a return has already been provided.

Section 15C: inserted, on 1 October 2007, by section 291(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 15C(1): replaced, on 30 March 2017, by section 355(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 15C(1): amended, on 30 March 2022, by section 15(1) (and see section 15(5) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 15C(2): replaced, on 30 March 2017, by section 355(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 15C(2B): inserted, on 30 March 2017, by section 355(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 15C(3): amended, on 30 March 2022, by section 15(2) (and see section 15(5) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 15C(3B): inserted, on 1 October 2007, by section 214(1) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).

Section 15C(3B): amended, on 30 March 2022, by section 15(3) (and see section 15(5) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 15C(3C): inserted, on 1 October 2007, by section 214(1) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).

Section 15C(3C): amended, on 30 March 2022, by section 15(4) (and see section 15(5) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

15D When change in taxable period takes effect

(4)

Section RC 27 of the Income Tax Act 2007 overrides this section.

Section 15D: inserted, on 1 October 2007, by section 291(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 15D(1)(a): amended, on 30 March 2022, by section 16(1) (and see section 16(6) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 15D(1)(a): amended, on 1 October 2007, by section 215(1) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).

Section 15D(1)(ab): inserted, on 30 March 2022, by section 16(2) (and see section 16(6) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 15D(2): amended, on 30 March 2022, by section 16(3) (and see section 16(6) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 15D(2B): inserted, on 30 March 2022, by section 16(4) (and see section 16(6) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 15D(3B): inserted, on 30 March 2022, by section 16(5) (and see section 16(6) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 15D(4): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

15E Meaning of end of taxable period

(1)

A taxable period ends on the last day of a month.

(2)

the company goes into liquidation or receivership, or ceases to exist on amalgamation (as defined in section YA 1 of the Income Tax Act 2007).

(4)

Despite subsection (1), if an event referred to in subsection (3) occurs, the date of the event is treated as the end of the person’s taxable period.

Section 15E: inserted, on 1 October 2007, by section 291(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 15E(2): replaced, on 30 March 2022, by section 17(1) (and see section 17(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 15E(2B): inserted, on 30 March 2022, by section 17(1) (and see section 17(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 15E(2C): inserted, on 30 March 2022, by section 17(1) (and see section 17(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 15E(3)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

15EB Approval of taxable period not consisting of whole calendar months

(1)

The Commissioner may approve under section 15C an end date for the taxable period of a registered person that is not the last day of the month if the Commissioner is satisfied that there are good commercial reasons for the registered person’s chosen date.

(2)

The Commissioner may approve under section 15C a day of the week as the last day for the taxable period of a registered person if the Commissioner is satisfied that—

(a)

the use of the day requested would improve the alignment of the registered person’s taxable periods with the registered person’s accounting systems; and

(b)

if the registered person is requesting a last day that is not within 7 days of the end of the month, the registered person’s accounting systems do not allow the use of a last day within 7 days of the end of the month.

(3)

If a registered person receives approval under subsection (1) or (2) for a taxable period (the new period) that differs from the taxable period (the old period) for which the person makes returns before the approval is given,—

(a)

the last old period for which the registered person makes a return must end on or before the day that precedes, by the length of a new period, the first day or date approved for the new period; and

(b)

the first new period for which the registered person makes a return begins after the end of the last old period referred to in paragraph (a).

Section 15EB: inserted, on 30 March 2022, by section 18(1) (and see section 18(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

16 Taxable period returns

(1)

A registered person must provide a return setting out the amount of tax payable by them for a taxable period, calculated under section 20.

(2)

A return required by subsection (1) must be provided on or before—

(a)

the 28th of the month following the end of the taxable period, if paragraph (b) or (c) do not apply; or

(b)

15 January, if the month following the end of the taxable period is December; or

(c)

7 May, if the month following the end of the taxable period is April.

(3)

If the circumstances of a non-profit body or a particular case mean a variation is required in the date on which a return must be provided, the Commissioner may vary the date.

(4)

A person who ceases to be a registered person must provide a final return for the part of the last taxable period for which they were registered.

(5)

A return required by subsection (4) must be provided on or before—

(a)

the 28th of the month following the end of the taxable period, if paragraph (b) or (c) do not apply; or

(b)

15 January, if the month following the end of the taxable period is December; or

(c)

7 May, if the month following the end of the taxable period is April.

(6)

A return must contain a notice of the assessment that must be made under section 92B of the Tax Administration Act 1994.

Section 16: substituted, on 31 March 2007 (applying for taxable periods ending on or after 31 March 2007), by section 292(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 16(2)(a): substituted, on 31 March 2007 (applying for taxable periods ending on or after 31 March 2007), by section 216(1) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).

Section 16(2)(b): substituted, on 31 March 2007 (applying for taxable periods ending on or after 31 March 2007), by section 216(1) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).

Section 16(2)(c): added, on 31 March 2007 (applying for taxable periods ending on or after 31 March 2007), by section 216(1) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).

Section 16(5)(a): substituted, on 31 March 2007 (applying for taxable periods ending on or after 31 March 2007), by section 216(2) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).

Section 16(5)(b): substituted, on 31 March 2007 (applying for taxable periods ending on or after 31 March 2007), by section 216(2) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).

Section 16(5)(c): added, on 31 March 2007 (applying for taxable periods ending on or after 31 March 2007), by section 216(2) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).

17 Special returns

(1)

Where goods are deemed to be supplied by a person pursuant to section 5(2), the person selling the goods, whether or not that person is a registered person, shall—

(a)

furnish to the Commissioner in the prescribed form a return showing—

(i)

that person’s name and address and, if registered, registration number; and

(ii)

the name, address, and, if registered, registration number of the person whose goods were sold; and

(iii)

the date of the sale; and

(iv)

the description and quantity of the goods sold; and

(v)

the amount for which they were sold and the amount of tax charged on that supply; and

(vi)

such other particulars as may be prescribed; and

(b)

pay to the Commissioner the amount of tax charged on that supply; and

(c)

furnish to the person whose goods were sold, details of the information shown on the return referred to in paragraph (a),—

and the person selling the goods and the person whose goods were sold shall exclude from any return, other than a return required pursuant to this subsection, which either or both may be required to furnish under this Act, the tax charged on that supply of goods.

(1B)

The actions required of a person under subsection (1)(a) to (c) must be completed, on or before—

(a)

the 28th of the month following the end of the month in which the relevant sale was made, if paragraphs (b) or (c) do not apply; or

(b)

15 January, if November is the month in which the relevant sale was made; or

(c)

7 May, if March is the month in which the relevant sale was made.

(2)

Any amount of tax charged on any supply of goods to which this section applies shall be deemed, for the purposes of this Act, to be tax payable and shall be recoverable as a debt due to the Crown.

(3)

A return must contain a notice of the assessment that must be made under section 92B of the Tax Administration Act 1994.

Section 17(1): amended (with effect on 30 November 2007), on 19 December 2007 (applying for taxable periods ending on or after 30 November 2007), by section 275(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 17(1): amended, on 22 June 1987, by section 5(a) of the Goods and Services Tax Amendment Act 1987 (1987 No 103).

Section 17(1): amended, on 22 June 1987, by section 5(d) of the Goods and Services Tax Amendment Act 1987 (1987 No 103).

Section 17(1)(a): amended (with effect on 3 December 1985), on 8 August 1986, by section 15(1) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 17(1)(a)(ii): amended, on 22 June 1987, by section 5(b) of the Goods and Services Tax Amendment Act 1987 (1987 No 103).

Section 17(1)(a)(vi): substituted (with effect on 3 December 1985), on 8 August 1986, by section 15(2) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 17(1)(c): substituted, on 19 December 1989, by section 10 of the Goods and Services Tax Amendment Act (No 2) 1989 (1989 No 152).

Section 17(1B): inserted (with effect on 30 November 2007), on 19 December 2007 (applying for taxable periods ending on or after 30 November 2007), by section 275(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 17(1B): amended (with effect on 30 November 2007), on 21 December 2010 (applying to taxable periods ending on or after 30 November 2007), by section 12(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 17(3): added, on 21 December 2004 (applying for taxable periods beginning on or after 1 April 2005), by section 147(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).

18 Other returns

In addition to the returns specified in sections 16, 17, and 19B, the Commissioner may require any person, whether a registered person or not, to furnish (whether on that person’s own behalf or as an agent or trustee) to the Commissioner such further or other returns in the prescribed form as and when the Commissioner requires for the purposes of this Act.

Section 18: amended, on 25 November 2003, by section 153 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

19 Accounting basis

(1)

the person’s registration under this Act, where the direction is given by the Commissioner before the end of the first taxable period of the person that follows that registration; or

(c)

the commencement of such other taxable period as the Commissioner considers equitable, where the Commissioner and the person so agree.

Section 19: substituted, on 1 April 1991 (applying to allow changes in a registered person’s accounting basis in respect of taxable periods commencing on and after 1 April 1991), by section 3(1) of the Goods and Services Tax Amendment Act 1991 (1991 No 11).

Section 19(1): substituted, on 10 October 2000 (applying on and after 10 October 2000), by section 95(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 19(1B): inserted, on 1 April 2014, by section 126 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 19(2): amended, on 2 June 2016, by section 187(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 19(3): amended, on 2 June 2016, by section 187(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 19(3B): inserted, on 2 November 2012 (applying in relation to an application for a change to a registered person’s accounting basis received on or after that date), by section 213 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

19A Requirements for accounting on payments basis

(b)

the replacement of any plant or other capital asset used in any taxable activity carried on by that person.

(4)

An order under subsection (1)(b)(i) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

See secondary legislation made under this Act (if published on this website)

Legislation Act 2019 requirements for secondary legislation made under this section
Publication	PCO must publish it on the legislation website and notify it in the Gazette	LA19 s 69(1)(c)
Presentation	The Minister must present it to the House of Representatives	LA19 s 114, Sch 1 cl 32(1)(a)
Disallowance	It may be disallowed by the House of Representatives	LA19 ss 115, 116
This note is not part of the Act.

Section 19A: inserted, on 1 April 1991 (applying to allow changes in a registered person’s accounting basis in respect of taxable periods commencing on and after 1 April 1991), by section 3(1) of the Goods and Services Tax Amendment Act 1991 (1991 No 11).

Section 19A(1)(a)(i): repealed, on 10 April 1995, by section 7 of the Goods and Services Tax Amendment Act 1995 (1995 No 22).

Section 19A(1)(a)(ii): repealed (with effect on 1 July 2013), on 17 July 2013, by section 127(1) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 19A(1)(a)(iv): inserted, on 1 April 2014, by section 127(2) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 19A(1)(b)(i): amended, on 30 March 2009, by section 26 of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).

Section 19A(2): amended, on 23 September 1997, by section 111 of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).

Section 19A(2)(b): amended, on 2 June 2016, by section 188 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 19A(3)(a): amended, on 10 October 2000 (applying on and after 10 October 2000), by section 96(3) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 19A(4): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

19AB Local authorities accounting on payments basis on and after 1 July 2001

[Repealed]

Section 19AB: repealed, on 17 July 2013, by section 128 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

19B Particulars to be furnished and prepared where change in accounting basis

(1)

Where the Commissioner directs a change in a registered person’s accounting basis under section 19 or section 19A, the registered person shall furnish to the Commissioner particulars in the prescribed form calculating the tax payable in respect of the change in accounting basis.

(2)

The particulars required to be furnished under subsection (1) shall be furnished to the Commissioner not later than the last day for furnishing a return pursuant to section 16 for the taxable period preceding that in which the direction of the Commissioner takes effect.

(2B)

The particulars required by subsection (1) must be furnished in a return that contains a notice of the assessment that must be made under section 92B of the Tax Administration Act 1994.

(3)

Where the Commissioner directs a change in a registered person’s accounting basis under section 19 or section 19A, the registered person shall—

(a)

where the registered person has been directed to change from an invoice to a payments basis of accounting, or from a payments basis to an invoice basis,—

(i)

prepare a list of creditors of the registered person in relation to that person’s taxable activity, showing the amounts due by that person as at the last day of the taxable period preceding that in which the direction takes effect; and

(ii)

prepare a list of debtors of the registered person in relation to that person’s taxable activity, showing the amounts due to that person as at the last day of the taxable period preceding that in which the direction takes effect:

(b)

where the registered person has been directed to change from an invoice to a hybrid basis of accounting, or from a hybrid basis to an invoice basis, prepare a list of creditors of the registered person in relation to that person’s taxable activity, showing the amounts due by that person as at the last day of the taxable period preceding that in which the direction takes effect:

(c)

where that registered person has been directed to change from a payments basis to a hybrid basis of accounting, or from a hybrid basis to a payments basis, prepare a list of debtors of the registered person in relation to that person’s taxable activity, showing the amounts due to that person as at the last day of the taxable period preceding that in which the direction takes effect.

Section 19B: inserted, on 1 April 1991 (applying to allow changes in a registered person’s accounting basis in respect of taxable periods commencing on and after 1 April 1991), by section 3(1) of the Goods and Services Tax Amendment Act 1991 (1991 No 11).

Section 19B(2B): inserted, on 21 December 2004 (applying for taxable periods beginning on or after 1 April 2005), by section 148(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).

19C Tax payable, or refund, where change in accounting basis

(1)

Every registered person whose accounting basis is changed pursuant to section 19, 19A, or 87, as applicable, shall, not later than the last day allowed under section 19B(2) for furnishing particulars in respect of the change, pay to the Commissioner the tax payable (if any) as determined pursuant to this section.

(2)

Where a registered person changes from an invoice basis to a payments basis of accounting, the tax payable under subsection (1) shall be an amount determined in accordance with the following formula:

a − b

where—

a: is an amount equal to the aggregate amount of the input tax deducted pursuant to section 20(3) in relation to the amounts due that are required to be shown in the list of creditors required to be prepared by the registered person under section 19B(3)(a)(i); and
b: is an amount equal to the aggregate amount of output tax accounted for pursuant to section 20(3) in relation to the amounts due that are required to be shown in the list of debtors required to be prepared by the registered person under section 19B(3)(a)(ii).

(3)

Where a registered person changes from a payments basis to an invoice basis of accounting, the tax payable under subsection (1) shall be an amount determined in accordance with the following formula:

a − b

where—

a: is an amount equal to the aggregate amount of output tax that would have been accounted for pursuant to section 20(3), in relation to the amounts due that are required to be shown in the list of debtors required to be prepared by the registered person under section 19B(3)(a)(ii), if the person had been accounting for tax payable on an invoice basis; and
b: is an amount equal to the aggregate amount of the input tax that would have been deducted pursuant to section 20(3), in relation to the amounts due that are required to be shown in the list of creditors required to be prepared by the registered person under section 19B(3)(a)(i), if the registered person had been accounting for tax payable on an invoice basis.

(4)

Where a registered person changes from a hybrid basis to an invoice basis of accounting, the tax payable under subsection (1) shall be an amount determined in accordance with the following formula:

a − b

where—

a: is zero; and
b: is an amount equal to the aggregate amount of input tax that would have been deducted pursuant to section 20(3), in relation to the amounts due that are required to be shown in the list of creditors required to be prepared by the registered person under section 19B(3)(b), if the person had been accounting for tax payable on an invoice basis.

(5)

Where a registered person changes from a hybrid basis to a payments basis of accounting, the tax payable under subsection (1) shall be an amount determined in accordance with the following formula:

a − b

where—

a: is zero; and
b: is an amount equal to the aggregate amount of output tax accounted for pursuant to section 20(3) in relation to the amounts due that are required to be shown in the list of debtors required to be prepared by the registered person under section 19B(3)(c).

(6)

Where a registered person changes from an invoice basis to a hybrid basis of accounting, the tax payable under subsection (1) shall be an amount determined in accordance with the following formula:

a − b

where—

a: is an amount equal to the aggregate amount of input tax deducted pursuant to section 20(3) in relation to the amounts due that are required to be shown in the list of creditors required to be prepared by the registered person under section 19B(3)(b); and
b: is zero.

(7)

Where a registered person changes from a payments basis to a hybrid basis of accounting, the tax payable under subsection (1) shall be an amount determined in accordance with the following formula:

a − b

where—

a: is an amount equal to the aggregate amount of output tax that would have been accounted for pursuant to section 20(3), in relation to the amounts due that are required to be shown in the list of debtors required to be prepared by the registered person under section 19B(3)(c), if the person had been accounting for tax payable on a hybrid basis; and
b: is zero.

(8)

Subject to this Act, if, in relation to any particulars required to be furnished by section 19B, the amount determined in accordance with subsection (2) or subsection (3) or subsection (4) or subsection (5) of this section is a negative amount, the amount of that negative amount shall be refunded to the registered person by the Commissioner pursuant to section 46.

(9)

For the purposes of this Act, any previous adjustment made to input tax or output tax, as the case may be, when a registered person changed—

(a)

from an invoice basis to a payments or a hybrid basis, as the case may be; or

(b)

from a payments basis to an invoice or a hybrid basis, as the case may be; or

(c)

from a hybrid basis to an invoice or a payments basis, as the case may be,—

shall be deemed to have been deducted, or accounted for, as the case may be, pursuant to section 20(3).

Section 19C: inserted, on 1 April 1991 (applying to allow changes in a registered person’s accounting basis in respect of taxable periods commencing on and after 1 April 1991), by section 3(1) of the Goods and Services Tax Amendment Act 1991 (1991 No 11).

Section 19C(1): amended, on 17 July 2013, by section 129 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 19C(2): substituted, on 13 March 1992, by section 6 of the Goods and Services Tax Amendment Act 1992 (1992 No 2).

Section 19C(3): substituted, on 13 March 1992, by section 6 of the Goods and Services Tax Amendment Act 1992 (1992 No 2).

Section 19C(4): substituted, on 13 March 1992, by section 6 of the Goods and Services Tax Amendment Act 1992 (1992 No 2).

Section 19C(5): substituted, on 13 March 1992, by section 6 of the Goods and Services Tax Amendment Act 1992 (1992 No 2).

Section 19C(6): substituted, on 13 March 1992, by section 6 of the Goods and Services Tax Amendment Act 1992 (1992 No 2).

Section 19C(7): substituted, on 13 March 1992, by section 6 of the Goods and Services Tax Amendment Act 1992 (1992 No 2).

19D Invoice basis for supplies over $225,000

(1)

A registered person who makes a supply of goods and services for a consideration of more than $225,000 must account for tax payable on an invoice basis for that supply.

(2)

Subsection (1) does not apply if the supply of goods and services is a short term agreement for the sale and purchase of property or services, as that term is defined in section YA 1 of the Income Tax Act 2007, except that the reference to “93rd day” is to be read as “on or before the day that is 1 year”.

(2B)

Subsection (1) does not apply if the supplier is a non-profit body that determines on the basis of reasonable information that, at the time of supply, the recipient—

(a)

is not a registered person; and

(b)

is either—

(i)

not intending to use the goods and services for the purposes of carrying on a taxable activity; or

(ii)

intending to use the goods and services for the purposes of carrying on a taxable activity but only after the full consideration for the supply is paid to the supplier.

(3)

For the purpose of subsection (1), the Commissioner may treat a registered person as having made a supply of goods and services for a consideration of more than $225,000 if—

(a)

the person has made more than 1 supply and the sum of the consideration for each supply is more than $225,000 irrespective of whether each supply is one to which subsection (2) applies; and

(b)

the Commissioner considers that the person made more than 1 supply to avoid the application of subsection (1).

Section 19D: inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 98(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 19D(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 19D(2): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).

Section 19D(2B): inserted, on 21 December 2010, by section 13 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Calculation of tax payable: deductions, apportionment, other adjustments

Heading: inserted, on 30 March 2022, by section 20 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

20 Calculation of tax payable

(1)

In respect of each taxable period every registered person shall calculate the amount of tax payable by that registered person in accordance with the provisions of this section.

(2)

an amount equal to the tax fraction of any payment made during the taxable period by that registered person to another person pursuant to any contract of insurance:

provided that this paragraph—

(i)

shall only apply where the supply of that contract of insurance is a taxable supply, or where the supply of that contract of insurance would have been a taxable supply if the time of performance of that supply had been on or after 1 October 1986:

(ii)

shall not apply where that payment is in respect of the supply of goods and services to the registered person or the importation of any goods by that registered person; and

(iii)

shall not apply where the supply of that contract of insurance is a supply charged with tax at the rate of 0% pursuant to section 11, 11A or 11B and that other person is, at the time that that payment is made, not a registered person and a non-resident:

(iv)

shall not apply where that payment results from a supply of goods and services to that other person where those goods are situated outside New Zealand or those services are physically performed outside New Zealand at the time of that supply:

(iva)

does not apply if the payment is made to a person who, on the date the payment is made, is not a registered person and is a non-resident:

(v)

does not apply where that payment is made in respect of any entitlement for any loss of earnings (being earnings within the meaning of the Accident Compensation Act 1982 or the Accident Rehabilitation and Compensation Insurance Act 1992 or the Accident Insurance Act 1998 or the Accident Compensation Act 2001):

(vi)

does not apply to the supply of a contract of insurance when the supplier is not required to account for output tax on the supply:

(vii)

does not apply to the supply of a contract of insurance that is zero-rated under section 11A(1)(x); and

(da)

[Repealed]

(db)

an amount equal to the tax fraction of the payment of a recovered amount to which section 5(13B) applies; and

(dc)

an amount of output tax charged on a supply of remote services to the extent that the supplier has, in relation to the supply, incurred liability for, returned, and paid a consumption tax in another country or territory, when the remote services are—

(i)

physically performed in New Zealand; and

(ii)

supplied to a non-resident person in New Zealand who is not a registered person; and

(dd)

an amount of output tax charged on a supply of distantly taxable goods to the extent that the supplier has, in relation to the supply, incurred liability for, returned, and paid, a consumption tax in another country or territory when the goods are supplied to a person in New Zealand who is not a registered person; and

(e)

any amount calculated under sections 21D(1) and (3)(a), 21F, and 21FB(2); and

(ea)

[Repealed]

(f)

any amount of input tax in relation to any supply in respect of which paragraph (a) of, or the proviso to, subsection (2) has operated to deny a deduction of input tax, and that registered person has obtained, during the taxable period, a tax invoice in relation to that supply; and

(g)

any amount calculated in accordance with section 20A in relation to any goods and services so supplied during that taxable period; and

(h)

any amount calculated in accordance with section 20C in relation to supplies of financial services in respect of that taxable period; and

(hb)

an amount calculated in accordance with section 20G in relation to the supply of an asset during the taxable period; and

(hc)

an amount calculated in accordance with section 21HC in relation to a supply acquired in the taxable period by a unit title body corporate of which the registered person is a member; and

(hd)

the amount given by section 20H in relation to the supply during the taxable period of certain financial services:

(i)

any amount calculated in accordance with section 26; and

provided that a registered person who is entitled to deduct an amount from the output tax attributable to a taxable period may deduct that amount from the output tax attributable to a later taxable period if the amount has not previously been deducted from the output tax of the registered person and—

(a)

the later tax period begins on or before the date that is the second anniversary of the earlier of the following:

(i)

the date on which the registered person makes the payment for the taxable supply to which the deduction relates:

(ii)

the date on which a tax invoice is issued for the taxable supply to which the deduction relates:

(b)

the failure of the registered person to make the deduction in the earlier taxable period arises from—

(i)

an inability of the registered person to obtain a tax invoice:

(ii)

a dispute over the proper amount of the payment for the taxable supply to which the deduction relates:

(iii)

a mistaken understanding on the part of the registered person that the supply to which the deduction relates was not a taxable supply:

(iv)

a clear mistake or simple oversight of the registered person.

(3A)

For the purpose of subsection (3), output tax does not include the tax on the taxable value of a fringe benefit provided or granted to another person under the FBT rules of the Income Tax Act 1994.

(3AB)

[Repealed]

(3B)

[Repealed]

(3C)

an industry association, if the method is intended by the Commissioner and the industry association to be available to a person such as the registered person.

(3F)

The method used to calculate the amount that may be deducted on acquisition is set out in subsections (3C) to (3EB), and (3G) to (3M). The rules for calculating adjustments are set out in sections 21 to 21H.

(3G)

In determining the extent to which goods or services are used for making taxable supplies, a person must estimate at the time of acquisition how they intend to use the goods or services, choosing a determination method that provides a fair and reasonable result. The determination is expressed as a percentage of the total use.

(3H)

The extent to which a deduction for input tax is allowed is calculated using the formula—

full input tax deduction × percentage intended use.

(3I)

In the formula in subsection (3H),—

(a)

full input tax deduction is the total amount of input tax on the supply:

(b)

percentage intended use has the meaning set out in section 21G(1)(b).

(3J)

the information required by the Commissioner relating to the election; and

(b)

including in a return for the taxable period in which the election date occurs an amount of output tax on the disposal of each asset referred to in subsection (3KB)(b) equal to the tax on a taxable supply having a value equal to the total of—

(i)

each amount, which may be estimated using a method acceptable to the Commissioner if adequate records are not available, that affects under subsection (3K) the calculation of the registered person’s input tax before the election date and is included in the cost of the asset; and

(ii)

each amount arising from the asset, which may be estimated using a method acceptable to the Commissioner if adequate records are not available, that affects under subsection (3K) the calculation of the registered person’s input tax before the election date and is included in the operating costs of the asset in the period of 7 years before the election date.

(3L)

For the purposes of subsection (3), a registered person who is non-resident may deduct input tax as defined in section 3A(1)(a) or (c) to the extent to which the registered person uses the goods and services for, or intends the goods or services for use in, making taxable supplies, treating all the supplies made by the person as if they are made and received in New Zealand.

(3LB)

For the purposes of subsection (3), a registered person who is non-resident may deduct input tax as defined in section 3(1)(b) to the extent to which the goods or services are used for, or intended to be used in, making taxable supplies, treating all supplies made by the person as if they were made and received in New Zealand.

(3LC)

A registered person who is non-resident may not deduct input tax as defined in section 3A(1)(b) if the imported goods are—

(a)

supplied to a person (the recipient) who—

(i)

is not a registered person; or

(ii)

is a registered person and the supply is not for use in a taxable activity of the recipient; and

(b)

outside New Zealand at the time of supply.

(3M)

Despite subsection (3L), a non-resident person who is registered under section 54B and who principally makes supplies of financial services may, for the purposes of calculating the amount of input tax, choose to use a fair and reasonable method of apportionment agreed with the Commissioner, as set out in subsection (3E).

(4)

For the purpose of subsection (3), output tax in relation to a supply made by a registered person must be attributed to a taxable period—

(a)

in the case of a registered person who is required to account for tax payable on an invoice or a hybrid basis under section 19, if the supply is made or is deemed to be made during the taxable period; or

(b)

in the case of a registered person who is required to account for tax payable on a payments basis under section 19—

(i)

to the extent that payment for the supply has been received during the taxable period, if the supply is a supply of goods and services which is deemed to take place under any one of sections 9(1), 9(3)(a), 9(3)(aa), 9(6), 9(8), 25(2)(a), 25(4) and is not treated by section 8(4B) as being made in New Zealand; or

(ib)

to the extent that payment for the supply has been made during the taxable period, if the supply is a supply of services that is treated as being made in New Zealand by section 8(4B) together with any one of sections 9(1), 9(3)(a), 9(3)(aa), 9(6), 9(8), 25AA(2)(a) or 25AA(3)(a); or

(ii)

if the supply of goods and services is made during the taxable period by the registered person and neither of subparagraphs (i) and (ib) applies; or

(c)

in the case of a registered person who is required to account for tax payable under section 21D(1) and (3)(b) or 21FB(4), for the relevant adjustment period.

(4B)

A person who is treated under section 5(23) as a supplier of goods under section 11(1)(mb) is denied a deduction under subsection (3) in relation to the supply. However, this subsection does not apply to a person required to account for tax under section 5(23) who is either a registered person or later becomes a registered person and uses the relevant goods for making taxable supplies.

(4C)

For a supply of distantly taxable goods by a non-resident to which section 8(3)(ab) applies or a supply of remote services to which section 8(3)(c) applies, a recipient of the supply is denied a deduction of input tax in relation to the supply unless the recipient has obtained a tax invoice under section 24(5B) or (5BB).

(4D)

Subsection (4C) does not apply to a supply of distantly taxable goods to which section 8(3)(ab) applies or of remote services, that is treated by section 5B as being made by the recipient, if the recipient has accounted for the output tax charged on the supply.

(5)

If, in relation to any taxable period and any registered person, the total amount that may be deducted under subsection (3) exceeds the aggregate amount of the output tax of that registered person attributable to that taxable period, the amount of the excess shall, subject to this Act, be refunded to that registered person by the Commissioner pursuant to section 46.

Section 20(2): replaced (with effect on 30 March 2022), on 31 March 2023, by section 137(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).

Section 20(3)(a): amended, on 25 November 2003, by section 154(3)(a) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20(3)(a)(i): amended, on 25 November 2003, by section 154(3)(b) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20(3)(a)(i): amended, on 10 October 2000 (applying on and after 10 October 2000), by section 99(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 20(3)(a)(i): amended, on 22 March 1989 (applying to supplies made on or after 22 March 1989), by section 6(1) of the Goods and Services Tax Amendment Act 1989 (1989 No 8).

Section 20(3)(a)(ia): inserted, on 22 March 1989 (applying to supplies made on or after 22 March 1989), by section 6(2) of the Goods and Services Tax Amendment Act 1989 (1989 No 8).

Section 20(3)(a)(ia): amended, on 25 November 2003, by section 154(3)(c) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20(3)(a)(ia): amended, on 10 October 2000 (applying on and after 10 October 2000), by section 99(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 20(3)(a)(ii): amended, on 25 November 2003, by section 154(3)(d) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20(3)(a)(ii): amended, on 1 October 1996, by section 289(1) of the Customs and Excise Act 1996 (1996 No 27).

Section 20(3)(a)(ii): amended (with effect on 3 December 1985), on 8 August 1986, by section 17(4)(a) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 20(3)(a)(ii): amended (with effect on 3 December 1985), on 8 August 1986, by section 17(4)(b) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 20(3)(a)(iii): substituted, on 25 November 2003, by section 154(3)(e) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20(3)(b): amended, on 25 November 2003, by section 154(4)(a) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20(3)(b): amended, on 1 April 1991, by section 4(1) of the Goods and Services Tax Amendment Act 1991 (1991 No 11).

Section 20(3)(b)(i): amended, on 25 November 2003, by section 154(4)(b) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20(3)(b)(i): amended (with effect on 3 December 1985), on 8 August 1986, by section 17(6) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 20(3)(b)(ii): amended, on 25 November 2003, by section 154(4)(c) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20(3)(b)(ii): amended, on 1 October 1996, by section 289(1) of the Customs and Excise Act 1996 (1996 No 27).

Section 20(3)(b)(iii): amended, on 25 November 2003, by section 154(4)(d) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20(3)(b)(iii): amended (with effect on 3 December 1985), on 8 August 1986, by section 17(7) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 20(3)(b)(iv): substituted, on 25 November 2003, by section 154(4)(e) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20(3)(bb): inserted (with effect on 1 July 2018), on 18 March 2019, by section 301(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section 20(3)(bc): inserted (with effect on 1 July 2018), on 18 March 2019, by section 301(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section 20(3)(c): repealed (with effect on 3 December 1985), on 8 August 1986, by section 17(9)(a) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 20(3)(d): amended, on 10 October 2000 (applying on and after 10 October 2000), by section 99(2) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 20(3)(d) proviso subparagraph (i): amended (with effect on 3 December 1985), on 8 August 1986, by section 17(9)(b) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 20(3)(d) proviso subparagraph (iii): added (with effect on 3 December 1985), on 8 August 1986, by section 17(10) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 20(3)(d) proviso subparagraph (iii): amended, on 25 November 2003, by section 154(5) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20(3)(d) proviso subparagraph (iii): amended, on 10 October 2000 (applying on and after 10 October 2000), by section 99(3) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 20(3)(d) proviso subparagraph (iv): added (with effect on 3 December 1985), on 8 August 1986, by section 17(10) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 20(3)(d) proviso subparagraph (iva): inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 99(5) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 20(3)(d) proviso subparagraph (iva): amended, on 25 November 2003, by section 154(5) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20(3)(d) proviso subparagraph (v): substituted, on 19 December 1998, by section 416(1) of the Accident Insurance Act 1998 (1998 No 114).

Section 20(3)(d) proviso subparagraph (v): amended (with effect on 1 January 2005), on 2 November 2012, by section 214(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 20(3)(d) proviso subparagraph (v): amended, on 3 March 2010, pursuant to section 5(1)(b) of the Accident Compensation Amendment Act 2010 (2010 No 1).

Section 20(3)(d) proviso subparagraph (v): amended, on 1 April 2002, by section 338 of the Accident Compensation Act 2001 (2001 No 49).

Section 20(3)(d) proviso subparagraph (vi): inserted (with effect on 1 January 2005), on 2 November 2012, by section 214(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 20(3)(d) proviso subparagraph (vi): amended, on 1 October 2016, by section 60(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 20(3)(d) proviso subparagraph (vii): inserted, on 1 October 2016, by section 60(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 20(3)(da): repealed, on 1 August 1990, by section 8(1) of the Goods and Services Tax Amendment Act 1990 (1990 No 64).

Section 20(3)(db): inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 99(4) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 20(3)(dc): inserted, on 1 October 2016, by section 60(3) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 20(3)(dd): inserted, on 1 December 2019, by section 21(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 20(3)(e): substituted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 14(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 20(3)(e): amended, on 30 March 2017, by section 356(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 20(3)(ea): repealed, on 10 October 2000 (applying on 10 October 2000), by section 99(7) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 20(3)(g): added, on 24 March 1988 (applying to supplies made on or after 24 March 1988), by section 11(2) of the Goods and Services Tax Amendment Act 1988 (1988 No 7).

Section 20(3)(g): amended, on 25 November 2003, by section 154(6) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20(3)(h): added, on 25 November 2003, by section 154(6) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20(3)(hb): inserted (with effect on 1 April 2013, applying in relation to supplies of goods other than land or improvements to land made on or after 1 April 2014; for supplies of land or improvements to land, applying from 17 July 2013), on 17 July 2013, by section 130(1) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 20(3)(hc): inserted (with effect on 1 October 2011), on 24 February 2016, by section 276 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section 20(3)(hd): inserted, on 1 April 2017, by section 356(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 20(3)(i): added, on 25 November 2003, by section 154(6) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20(3) proviso: substituted, on 21 December 2004 (applying for taxable periods beginning on or after 1 April 2005), by section 149(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).

Section 20(3) second proviso: repealed (with effect on 1 April 1988), on 24 March 1988 (applying to supplies made on or after 1 April 1988), by section 10(2) of the Goods and Services Tax Amendment Act 1988 (1988 No 7).

Section 20(3) third proviso: repealed (with effect on 1 April 1988), on 24 March 1988 (applying to supplies made on or after 1 April 1988), by section 10(2) of the Goods and Services Tax Amendment Act 1988 (1988 No 7).

Section 20(3A): substituted, on 27 March 2001, by section 64(1) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).

Section 20(3AB): repealed, on 10 October 2000 (applying on 10 October 2000), by section 99(7) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 20(3B): repealed, on 10 October 2000 (applying on 10 October 2000), by section 99(7) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 20(3C): replaced (with effect on 1 April 2011), on 2 November 2012, by section 214(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 20(3C): amended (with effect on 30 March 2022), on 31 March 2023, by section 137(6) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).

Section 20(3C): amended, on 1 April 2014, by section 130(2) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 20(3C)(a): amended (with effect on 1 April 2011), on 31 March 2023, by section 137(8) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).

Section 20(3C)(b): amended (with effect on 1 April 2011), on 31 March 2023, by section 137(9) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).

Section 20(3D): inserted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 14(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 20(3D): amended, on 30 March 2017, by section 356(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 20(3E): inserted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 14(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 20(3E)(a): amended, on 30 March 2017, by section 356(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 20(3EB): inserted, on 30 March 2017, by section 356(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 20(3EB)(b)(i): replaced, on 30 March 2022, by section 21(5) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 20(3F): inserted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 14(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 20(3F): amended, on 30 March 2017, by section 356(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 20(3G): inserted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 14(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 20(3H): inserted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 14(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 20(3I): inserted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 14(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 20(3J): inserted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 14(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 20(3J): amended, on 30 March 2022, by section 21(6) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 20(3J)(a)(iii): replaced, on 30 March 2022, by section 21(7) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 20(3J)(a)(iv): inserted, on 30 March 2022, by section 21(7) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 20(3J)(b): amended (with effect on 1 April 2013, applying in relation to supplies of goods other than land or improvements to land made on or after 1 April 2014; for supplies of land or improvements to land, applying from 17 July 2013), on 17 July 2013, by section 130(3) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 20(3JB): inserted (with effect on 1 April 2013, applying in relation to supplies of goods other than land or improvements to land made on or after 1 April 2014; for supplies of land or improvements to land, applying from 17 July 2013), on 17 July 2013, by section 130(4) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 20(3JC): inserted, on 1 October 2016, by section 60(4) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 20(3K): replaced (with effect on 15 May 2018), on 18 March 2019, by section 301(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section 20(3KB): inserted (with effect on 15 May 2018), on 18 March 2019, by section 301(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section 20(3KC): inserted (with effect on 15 May 2018), on 18 March 2019, by section 301(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section 20(3L): replaced, on 30 March 2022, by section 21(8) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 20(3L): amended (with effect on 1 April 2014), on 31 March 2023, by section 137(19) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).

Section 20(3L): amended (with effect on 30 March 2022), on 31 March 2023, by section 137(20) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).

Section 20(3LB): replaced (with effect on 30 March 2022), on 31 March 2023, by section 137(21) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).

Section 20(3LC): replaced, on 30 March 2022, by section 21(8) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

Section 20(3M): inserted, on 1 April 2014, by section 130(6) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 20(4): substituted, on 10 October 2000 (applying on and after 10 October 2000), by section 99(8) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

Section 20(4)(b)(i): amended, on 25 November 2003, by section 154(7)(a) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20(4)(b)(ib): inserted, on 25 November 2003, by section 154(7)(a) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20(4)(b)(ii): substituted, on 25 November 2003, by section 154(7)(b) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20(4)(b)(ii): amended, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 14(4) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 20(4)(c): added, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 14(4) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 20(4)(c): amended, on 30 March 2017, by section 356(9) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section 20(4B): inserted, on 1 April 2011 (applying to supplies made on or after 1 April 2011), by section 14(5) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 20(4B): amended (with effect on 1 April 2011 and applying to supplies made on or after 1 April 2011), on 30 June 2014, by section 190(3) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section 20(4C): inserted, on 1 October 2016, by section 60(5) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 20(4C): amended, on 1 December 2019, by section 21(5) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 20(4C): amended, on 1 December 2019, by section 21(6) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 20(4D): inserted, on 1 October 2016, by section 60(5) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 20(4D): amended, on 1 December 2019, by section 21(7)(a) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 20(4D): amended, on 1 December 2019, by section 21(7)(b) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 20(5): amended, on 10 October 2000 (applying on and after 10 October 2000), by section 99(9) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).

20A Goods and services tax incurred relating to determination of liability to tax

(1)

For the purposes of this section,—

goods and services tax payable—

(a)

means an amount of goods and services tax calculated in accordance with sections 19 to 20; and

(b)

includes—

(i)

any amount referred to in section 17(2) or section 51B; and

(ii)

any amount refundable by the Commissioner pursuant to section 19C or section 20

taxable income, tax year and taxpayer have the same meanings as in section YA 1 of the Income Tax Act 2007.

(2)

Subject to this section, any goods and services acquired by the registered person in connection with—

(a)

the calculation of the taxable income of the registered person for any tax year:

(b)

the calculation or determination of the goods and services tax payable by the registered person for any taxable period:

(c)

the preparation, institution, or presentation of an objection or challenge to or an appeal against or in consequence of any determination or assessment made, in respect of the registered person, by the Commissioner under the provisions of the Tax Administration Act 1994 or this Act:

(d)

any contribution by the registered person towards the expenditure incurred by any other taxpayer or registered person, as the case may be, where—

(i)

if the expenditure were incurred by the first-mentioned registered person, it would be an allowable deduction in calculating the taxable income of that person or allowable in the calculation or determination of any goods and services tax payable by that person; and

(ii)

the first-mentioned registered person has objected to, or challenged or appealed against, an assessment or determination made in relation to the matter by the Commissioner under the provisions of the Income Tax Act 1976 or the Tax Administration Act 1994 or this Act,—

shall be deemed to be goods and services acquired by the registered person for making taxable supplies; and the Commissioner shall allow that person to make a deduction under section 20(3) of the tax charged thereon.

(3)

This section shall not apply in relation to any goods and services acquired by the registered person in connection with—

(a)

any matter or assessment arising from a return (being a return of income furnished under the provisions of the Income Tax Act 1976 or the Tax Administration Act 1994 or a return furnished under the provisions of this Act) that, in the opinion of the Commissioner, was fraudulent or wilfully misleading:

(b)

any offence under any of the Inland Revenue Acts:

(c)

any assessment of penal tax under the Income Tax Act 1976 or the Tax Administration Act 1994 or this Act (not being an assessment which is subsequently cancelled):

(ca)

any assessment of a shortfall penalty under the Tax Administration Act 1994 (not being an assessment which is subsequently cancelled):

(d)

any objection or challenge or appeal which, in the opinion of the Commissioner, is of an inconsequential or frivolous nature.

(4)

Any amount received by the registered person at any time, whether by way of reimbursement, award of the court, recovery, or otherwise howsoever in respect of goods and services deemed under this section to be acquired by the registered person with the intention of using the supply for making taxable supplies, shall be deemed to be supplied by that registered person in the course of a taxable activity in the taxable period in which it is received.

Section 20A: inserted, on 24 March 1988 (applying to supplies made on or after 24 March 1988), by section 11(1) of the Goods and Services Tax Amendment Act 1988 (1988 No 7).

Section 20A(1) assessable income, income year, and taxpayer: repealed, on 26 July 1996 (applying to the 1997–98 and subsequent income years), by section 484 of the Taxation (Core Provisions) Act 1996 (1996 No 67).

Section 20A(1) goods and services tax payable paragraph (a): amended, on 1 April 1991, by section 5(1)(a) of the Goods and Services Tax Amendment Act 1991 (1991 No 11).

Section 20A(1) goods and services tax payable paragraph (b): amended, on 21 December 2004 (applying for taxable periods beginning on or after 1 April 2005), by section 150(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).

Section 20A(1) goods and services tax payable paragraph (b)(ii): amended, on 1 April 1991, by section 5(1)(b) of the Goods and Services Tax Amendment Act 1991 (1991 No 11).

Section 20A(1) taxable income, income year and taxpayer: inserted, on 26 July 1996 (applying to the 1997–98 and subsequent income years), by section 484 of the Taxation (Core Provisions) Act 1996 (1996 No 67).

Section 20A(1) taxable income, tax year and taxpayer: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 20A(1) taxable income, tax year and taxpayer: amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).

Section 20A(2): amended (with effect on 1 April 2011), on 2 November 2012, by section 215 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 20A(2)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).

Section 20A(2)(a): amended, on 26 July 1996 (applying to the 1997–98 and subsequent income years), by section 484 of the Taxation (Core Provisions) Act 1996 (1996 No 67).

Section 20A(2)(c): amended, on 1 October 1996 (applying with respect to tax obligations, liabilities, and rights that are to be performed under or arise in relation to supplies made in respect of taxable periods commencing on or after 1 April 1997 (unless necessary for the enforcement of other provisions in this Act)), by section 3(1)(a) of the Goods and Services Tax Amendment Act 1996 (1996 No 59).

Section 20A(2)(c): amended, on 26 July 1996 (applying to the 1997–98 and subsequent income years), by section 484 of the Taxation (Core Provisions) Act 1996 (1996 No 67).

Section 20A(2)(d)(i): substituted, on 26 July 1996 (applying to the 1997–98 and subsequent income years), by section 484 of the Taxation (Core Provisions) Act 1996 (1996 No 67).

Section 20A(2)(d)(ii): amended, on 1 October 1996 (applying with respect to tax obligations, liabilities, and rights that are to be performed under or arise in relation to supplies made in respect of taxable periods commencing on or after 1 April 1997 (unless necessary for the enforcement of other provisions in this Act)), by section 3(1)(b) of the Goods and Services Tax Amendment Act 1996 (1996 No 59).

Section 20A(2)(d)(ii): amended, on 26 July 1996 (applying to the 1997–98 and subsequent income years), by section 484 of the Taxation (Core Provisions) Act 1996 (1996 No 67).

Section 20A(3)(a): amended, on 26 July 1996 (applying to the 1997–98 and subsequent income years), by section 484 of the Taxation (Core Provisions) Act 1996 (1996 No 67).

Section 20A(3)(c): amended, on 26 July 1996 (applying to the 1997–98 and subsequent income years), by section 484 of the Taxation (Core Provisions) Act 1996 (1996 No 67).

Section 20A(3)(ca): inserted, on 26 July 1996 (applying with respect to tax obligations, liabilities, and rights that are to be performed under or arise in relation to supplies made in respect of taxable periods commencing on or after 1 April 1997 (unless necessary for the enforcement of other provisions in this Act)), by section 3(2) of the Goods and Services Tax Amendment Act 1996 (1996 No 59).

Section 20A(3)(d): amended, on 1 October 1996 (applying with respect to tax obligations, liabilities, and rights that are to be performed under or arise in relation to supplies made in respect of taxable periods commencing on or after 1 April 1997 (unless necessary for the enforcement of other provisions in this Act)), by section 3(3) of the Goods and Services Tax Amendment Act 1996 (1996 No 59).

Section 20A(4): amended (with effect on 1 April 2011), on 18 March 2019, by section 302 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

20B Allocation of taxable supplies following investigation by Commissioner

(1)

For the purposes of this section—

discrepancy means any understatement or overstatement of the taxable supplies made or received by a registered person calculated or otherwise ascertained in respect of any specified period

specified period means any period, being a period that extends over more than a single taxable period, to which a discrepancy relates

tax discrepancy, in relation to a discrepancy, means an amount equal to the tax fraction (being the tax fraction applicable to the taxable period, or any part of a taxable period, in relation to which the discrepancy has been deemed to have occurred) of the amount of the taxable supplies made or received by a registered person that have been understated or overstated.

(2)

For the purposes of this Act, in any case where, upon investigation by the Commissioner of the liability of a registered person for tax, the Commissioner has calculated or otherwise ascertained a discrepancy in relation to any specified period then,—

(a)

subject to paragraphs (b) and (c), the amount of the discrepancy shall be deemed to be taxable supplies made or received (as the case may be) by the registered person at a uniform daily rate throughout that specified period, and those taxable supplies shall be deemed to have been so made or received by the registered person in the taxable periods, or parts thereof, included in the specified period:

(b)

subject to paragraph (c), where the Commissioner is satisfied that the registered person did not carry on the taxable activity for any part of any specified period, the amount of the discrepancy shall be deemed to be taxable supplies made or received (as the case may be) by the registered person at a uniform daily rate throughout the part of the specified period in which the taxable activity was carried on, and those taxable supplies shall be deemed to be so made or received by the registered person in the taxable periods, or parts thereof, in which the taxable activity was carried on during the specified period:

(c)

where the registered person satisfies the Commissioner that it would be appropriate for the amount of the discrepancy to be allocated on a basis otherwise than in accordance with paragraph (a) or paragraph (b), the amount of the discrepancy shall be allocated on that basis, and the amount so allocated shall be deemed to be taxable supplies made or received (as the case may be) by the registered person in the taxable periods, or parts thereof, to which the discrepancy has been so allocated.

(3)

For the purposes of section 20, where a discrepancy has been deemed pursuant to this section to be taxable supplies made or received by a registered person in respect of any taxable period or any part of a taxable period, the tax discrepancy calculated in respect of the discrepancy shall be deemed to be output tax or, as the case may be, input tax in respect of that taxable period or part of a taxable period.

Section 20B: inserted, on 22 March 1989 (applying to any assessment issued on or after 22 March 1989), by section 7(1) of the Goods and Services Tax Amendment Act 1989 (1989 No 8).

20C Goods and services tax incurred in making certain supplies of financial services

Subject to this section, a registered person who has made an election under section 20F and who in respect of a taxable period supplies financial services to another supplier of financial services (called in this section a direct supplier) may make for each direct supplier a deduction under section 20(3)(h) of an amount given by the following formula:

a × (b ÷ c) × (d ÷ e)

where—

a: is the total amount in respect of the taxable period that the registered person—
(a)
would not be able to deduct under section 20(3) in the absence of this section; and
(b)
would be able to deduct under section 20(3), other than under section 20(3)(h), if all supplies of financial services by the registered person were taxable supplies
b: is the total value of exempt supplies of financial services by the registered person to the direct supplier in respect of the taxable period
c: is the total value of exempt supplies of financial services by the registered person in respect of the taxable period
d: is the total value of taxable supplies by the direct supplier in respect of the taxable period, determined under section 20D
e: is the total value of supplies by the direct supplier in respect of the taxable period, determined under section 20D.

Section 20C: inserted, on 1 January 2005, by section 155 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20C formula item a: substituted, on 1 January 2005, by section 151 of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).

Section 20C formula item c: substituted (with effect on 1 January 2005), on 7 September 2010 (applying for taxable periods beginning on or after 1 January 2005), by section 192(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

20D Determining availability of deduction under section 20C from supplies by another person

If a person makes a return that includes a figure for a deduction under section 20C based on the value of supplies made by the person to other persons, the availability of the deduction under section 20C for supplies made by the person to each other person must be determined on the basis of the statistics of the supplies made by the other person.

Section 20D: inserted, on 1 January 2005, by section 155 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

20E Determining supplies charged at 0% under section 11A(1)(q) and (r) from supplies by another person

If a person makes a return that includes a figure for the value of supplies charged with tax at a rate of 0% under section 11A(1)(q) and (r), that are made by the person to other persons, the effect of section 11A(1)(q) and (r) for supplies made by the person to each other person must be determined—

(a)

on the basis of the statistics of the supplies made by the other person; or

(b)

using a method that is approved by the Commissioner.

Section 20E: inserted, on 1 January 2005, by section 155 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

20F Election that sections 11A(1)(q) and (r) and 20C apply

(1)

A person may give notice to the Commissioner of an election that the person be subject to sections 11A(1)(q) and (r) and 20C.

(2)

An election under subsection (1)—

(a)

applies for the taxable period in which the Commissioner receives the notice and for subsequent taxable periods until the election is cancelled:

(b)

is cancelled from the end of the taxable period—

(i)

in which the registered person ceases to have a taxable activity, if subparagraphs (ii) and (iii) do not require an earlier cancellation; or

(ii)

that is nominated in a notice of cancellation that the Commissioner receives from the registered person, if the notice of cancellation nominates a taxable period after which the cancellation is to be effective; or

(iii)

in which the Commissioner receives from the registered person a notice of cancellation, if the notice of cancellation does not nominate a taxable period after which the cancellation is to be effective.

Section 20F: inserted, on 1 January 2005, by section 155 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 20F(1): amended, on 18 December 2006, by section 217 of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).

Section 20F(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).

Section 20F(2)(b)(ii): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).

Section 20F(2)(b)(iii): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).

20G Treatment of supplies of certain assets

(1)

A registered person who uses an asset described in section DG 3 of the Income Tax Act 2007 for making taxable supplies has a deduction under section 20(3)(hb) of an amount calculated using the formula—

input tax for asset × total income-earning days ÷ (total income-earning days + total private days).

List of access keys

Goods and Services Tax Act 1985

Goods and Services Tax Act 1985

Note

Contents

1 Short Title, etc

Part 1 Interpretation

2 Interpretation

(a)

(b)

(i)

(ii)

(a)

(b)

(a)

(i)

(ii)

(iii)

(iv)

(v)

(b)

(i)

(ii)

(a)

(b)

(a)

(b)

(c)

(a)

(i)

(ii)

(b)

(i)

(ii)

(iii)

(c)

(a)

(b)

(c)

(a)

(b)

(c)

(d)

(a)

(b)

(c)

(a)

(i)

(ii)

(b)

(a)

(i)

(ii)

(iii)

(iv)

(b)

(i)

(ii)

(iii)

(a)

(b)

(i)

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

(viii)

(ix)

(a)

(b)

(a)

(b)

(c)

(i)

(ii)

(a)

(b)

(c)