New Zealand: Proposals to change GST rules

New Zealand: Proposals to change GST rules

Officials in New Zealand have released proposals to change the goods and services tax (GST) rules for a number of commercial activities. The changes include measures that would:


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  • Allow GST input claims on capital raising costs, to the extent of a business’s taxable supplies—generally increasing the amount to be claimed from 0% to potentially 100%
  • Clarify the zero (0%) rate rules in relation to commercial leases and services provided to non-residents in connection with New Zealand land purchases
  • Expand the circumstances when the GST refund period can be extended

KPMG observation

By and large, the proposals are technical changes to achieve the desired policy outcomes and to minimise compliance costs for business. These changes are consistent with treating GST a broad-based tax, and are not expected to affect business.


Read a September 2015 report [PDF 440 KB] prepared by the KPMG member firm in New Zealand: GST – something for everyone

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