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New Zealand: Update on GST for imports, loss ring-fencing

New Zealand: Update on GST for imports

A bill—the Taxation (Annual Rates 2019-20, GST Offshore Supplier Registration, and Remedial Matters) Bill—has been reported back to Parliament by the Finance and Expenditure Select Committee.


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The bill has three key items:

  • Goods and services tax (GST) on low-value imported items
  • Loss ring-fencing rules for rental properties
  • Changes to the Commissioner’s care and management rules

Briefly, the following measures concern these three key items:

  • For GST on low-value goods, the Select Committee recommended deferring the start date by two months to 1 December 2019, to allow additional time for system changes to cope with the new rules.
  • The rental loss ring-fencing rules have been redrafted to make clarifications (not seen as major changes).
  • A supplementary order paper with changes to the care and management rules would allow the Commissioner to make decisions that may be contrary to “black letter” law in certain limited circumstances.

Read a June 2019 report prepared by the KPMG member in New Zealand

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