Michaela Merz

Recovery of GST in New Zealand possible for non-resident businesses as from 1 April 2014

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Currently, only non-residents who make taxable supplies in New Zealand are able to claim GST on their costs. As from 1 April 2014 non-residents who do not make taxable supplies in New Zealand will be able to register for GST under a special regime and to recover local GST.

In order to register under the new regime, the non-resident must:

  • not be carrying on or intending to carry on a taxable activity in New Zealand, and not become or intend to become a member of a group of companies carrying on a taxable activity in New Zealand
  • be registered for consumption tax in the country they are resident, or if there is no applicable consumption tax have a level of taxable activity (NZ $60,000 per annum) that would render them liable to be registered if they were carrying out that activity in New Zealand
  • be likely to incur at least $500 of input tax for the first taxable period after registration; and
  • not perform services that will likely be received by a person in New Zealand who is not GST registered.

The non-resident will need to complete a special GST registration application form (IR 564) and special GST return. Additional documentation will need to be provided to support the GST registration application (eg. copies of passports of directors, executive office holders etc) and to substantiate the GST recovery of costs included in the GST return (eg. copies of tax invoices/receipts). If the non-resident subsequently begins making taxable supplies in New Zealand, they will be deemed to have registered under the existing general GST registration rules.

Inland Revenue will be obliged to refund the GST within 90 working days of the return being filed.

For more information please click here.

For further information please do not hesitate to contact one of the tax professionals:

Eugen Trombitas
T: +64 9 355 8686
E: eugen.x.trombitas@nz.pwc.com

Gary O’Neill
P: +64 9 355 8432
E: gary.oneill@nz.pwc.com

Ian Rowe
P: +64 4 462 7274
E: ian.rowe@nz.pwc.com

Shane Philip
P: +64 9 355 8761
E: shane.j.philip@nz.pwc.com

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