Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
EB 22: Valuing closing stock consistently for low-turnover traders
or “Small businesses must value leftover stock consistently each year for tax purposes”
You could also call this:

“Simplified valuation method for small businesses with low-value stock”

If you have a business with a turnover of $1,300,000 or less in a year, and you think your closing stock at the end of that year is worth less than $10,000, you can use a simple method to value your stock. Instead of counting and valuing all your stock at the end of the year, you can just use the same value you had at the start of the year. This makes it easier for you to do your taxes if you have a small amount of stock.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

Next up: EB 24: Apportionment on disposal of business assets that include trading stock

or “Law about dividing money from selling business items, including stock, has been removed”
Next

Part E Timing and quantifying rules
Valuation of trading stock (including dealer’s livestock)

EB 23Valuing closing stock under $10,000

  1. This section applies when a person, including a low-turnover trader,—

  2. has a turnover of $1,300,000 or less in an income year; and
    1. reasonably estimates that the value of their closing stock for the income year is less than $10,000.

      1. The person may use the opening value of their trading stock as the value of their closing stock for the income year.

      Compare
      Notes
      • Section EB 23 heading: amended, on , by section 5(1) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).
      • Section EB 23(1)(b): amended, on , by section 5(2) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).