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RC 26: Registering for GST or cancelling registration
or “How registering for GST or cancelling registration affects your provisional tax payments”
You could also call this:

“Rules for paying provisional tax when you change your GST payment frequency”

If you pay provisional tax and use the standard or estimation method, changes to your GST cycle can affect when you pay your tax instalments.

If you were paying GST monthly or every two months and switch to paying every six months, you’ll now pay your provisional tax on the C and F instalment dates that come after your GST cycle change.

On the other hand, if you were paying GST every six months and switch to paying monthly or every two months, you’ll now pay your provisional tax on the B, D, and F instalment dates that come after your GST cycle change.

When you change your GST cycle, some of your provisional tax instalment dates might still be interest instalment dates if they were interest instalment dates in your old cycle. But if a new instalment date wasn’t an interest instalment date before, it won’t become one just because you changed your GST cycle.

The amount you need to pay for each instalment is worked out using section RC 10.

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Next up: RC 28: Provisional tax rules and consolidated groups

or “How consolidated groups pay provisional tax as one company”
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Part R General collection rules
Provisional tax: Table R1: Summary of instalment dates and calculation methods for provisional tax

RC 27Payment of provisional tax instalments when GST cycle changed

  1. Subsection (2) applies in a tax year to a person liable to pay provisional tax who—

  2. uses the standard or estimation method to determine the amount of provisional tax payable; and
    1. has been paying GST on a monthly or 2-monthly basis; and
      1. changes to a 6-monthly basis under section 15C(1) of the Goods and Services Tax Act 1985.

        1. The person must pay their instalments of provisional tax on whichever dates of instalments C and F for their corresponding income year occur after the change in taxable period takes effect.

        2. Subsection (4) applies in a tax year to a person liable to pay provisional tax who—

        3. uses the standard or estimation method to determine the amount of provisional tax payable; and
          1. has been paying GST on a 6-monthly basis; and
            1. changes to a monthly or 2-monthly basis under section 15C(2) or (3) of the Goods and Services Tax Act 1985.

              1. The person must pay their instalments of provisional tax on whichever dates of instalments B, D, and F for the person’s corresponding income year occur after the change in taxable period takes effect.

              2. If an instalment of provisional tax that falls on an instalment date in the new cycle is payable in relation to a period in the person’s original cycle that was, under that original cycle, an interest instalment date, it remains an interest instalment date in the new cycle. However, if the instalment falls on an instalment date other than an interest instalment date, the change does not affect the nature of the instalment.

              3. The amount of each instalment is calculated under section RC 10.

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