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Customs and Excise Act 2018

Entry and exit of goods, persons, and craft - Excise duty and excise-equivalent duty credits

107: Duty credits in respect of used goods

You could also call this:

"Getting money back on tax when using old goods to make new ones"

Illustration for Customs and Excise Act 2018

When you use old goods to make new goods in a special area, you might get some money back. You can get this money back if you pay tax on the new goods and you have already paid tax on the old goods. You can claim this money back when you tell the government about the new goods under section 81(1).

If you have already paid tax on the old goods, you can claim that tax back as a credit. The credit is the amount of tax you paid on the old goods. You can use this credit to pay the tax on the new goods.

If the credit is more than the tax you need to pay on the new goods, you might get the extra money back. The government can choose to give you the extra money or use it to pay other taxes you owe.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7039350.

Topics:
Money and consumer rights > TaxesBusiness > Industry rules
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Part 3Entry and exit of goods, persons, and craft
Excise duty and excise-equivalent duty credits

107Duty credits in respect of used goods

  1. This section applies if—

  2. goods (the used goods) are used in a manufacturing area in the manufacture, by the licensee of the area, of any Part A goods (the manufactured goods); and
    1. the manufactured goods are removed for home consumption; and
      1. the licensee is liable to pay excise duty levied in respect of the manufactured goods.

        1. The licensee may claim a credit when entering the manufactured goods under section 81(1).

        2. The credit that may be claimed is any excise duty or excise-equivalent duty that has been paid in respect of the used goods.

        3. If the credit exceeds the excise duty referred to in subsection (1)(c), the excess may, at the discretion of the chief executive, be—

        4. applied against any other excise duty that the licensee is liable to pay; or
          1. paid to the licensee.

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