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Income Tax Act 2007

Income - Adjustments

CH 5B: Adjustments for certain flat-rate credits under platform economy rules

You could also call this:

“Fixing mistakes in tax credits for people who sell goods and services online”

This section is about you if you supply goods and services and get a flat-rate credit under the Goods and Services Tax Act 1985. You are an underlying supplier of goods and services and you include a flat-rate credit in your income for the year. The amount of the credit you get is part of your income for that year.

You have to include the credit in your income because you get it as part of your business. The credit is defined in section 2(1) of the Goods and Services Tax Act 1985. When you get the credit, it is considered part of your income.

The amount of the credit is income you earn for the year, so you need to know about it when you are working out your income.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1426222.

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Part C Income
Adjustments

CH 5BAdjustments for certain flat-rate credits under platform economy rules

  1. This section applies to a person who, under the Goods and Services Tax Act 1985,—

  2. is an underlying supplier of goods and services; and
    1. has an amount of a flat-rate credit, as defined in section 2(1) of that Act, that they include in their assessable income for an income year.

      1. The amount of the credit received by the person is income of the person for the income year.

      Notes
      • Section CH 5B: inserted (with effect on 1 April 2024), on , by section 17(1) (and see section 17(2) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).