New Zealand Goods and Services Tax Legislation 2011 (26th Edition)

Contents Includes:
 

The 2011 edition of New Zealand Goods and Services Tax Legislation covers important GST reforms enacted by the Taxation (GST and Remedial Matters) Act 2010. The reforms include:

• zero-rating of business-to-business land transactions to prevent “phoenix” fraud schemes that involve Inland Revenue refunding GST to the purchaser with no corresponding payment being made to the vendor because the supplying company deliberately winds up before making payment
• clarifying of the rules around transaction involving nominations, when a contractual purchaser nominates another person to receive the goods or services from the contractual vendor
• replacing the definitions of dwelling and commercial dwelling to clarify when the supply of accommodation should be treated as a taxable or exempt supply for GST purposes
• replacing the existing change-in-use adjustment provisions that deal with the mixed use of goods and services with an approach that reflects their relative use and apportions input tax deductions
• amending the reverse charge rules, consequential on the introduction of the apportionment rules, to tie the use of imported services to the defined terms “percentage intended use” and “percentage actual use”
• amending an unintended timing problem for non-profit bodies accounting for GST when they supply a large asset, such as a house, for a person in need.