Plain language law

New Zealand law explained for everyone

Goods and Services Tax Act 1985

Special cases

60B: Nominated recipients of supplies

You could also call this:

"When someone buys something for another person to use"

Illustration for Goods and Services Tax Act 1985

When you buy something, like goods and services, it is usually from one person to another. But sometimes, the person buying the goods and services will ask the seller to give them to someone else. If the person who asked for the goods and services pays the full amount, it is like they bought it from the seller. If the other person pays the full amount, it is like they bought it from the seller. If they both pay some of the amount, it is like the first person bought it from the seller, but they can agree that it is like the other person bought it, as long as the first person has not already claimed any tax back on the purchase. However, if the goods and services include land, it is like the seller sold it to the other person. You can find out more about how this works with section 60, which is more important than this rule.

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 It might be out of date or be missing some parts.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

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3645112.

Topics:
Money and consumer rights > TaxesMoney and consumer rights > Consumer protection
Previous

60: Agents and auctioneers, or

"Rules for when someone helps you buy or sell things, like an agent or auctioneer"

Next

60C: Electronic marketplaces, or

"Tax rules for online shopping through websites like Trade Me or eBay"

Part 9Special cases

60BNominated recipients of supplies

  1. This section applies when a person (person A) enters into a contract to supply goods and services to another person (person B), and person B directs person A to provide the goods and services to a nominated person (person C) who is not party to the contract.

  2. If person B pays the full consideration for the supply, the supply is treated as a supply from person A to person B and the existence of person C is ignored.

  3. If person C pays the full consideration for the supply, the supply is treated as a supply from person A to person C and the existence of person B is ignored.

  4. If person B and person C each pay part of the consideration for the supply, the supply is treated as a supply from person A to person B. However, person B and person C may agree, recording their agreement in a document, that the supply is to be treated as a supply made to person C, but no such agreement can be made if person B has claimed input tax in relation to the supply.

  5. Repealed

  6. Despite subsections (2) to (4), for a supply that wholly or partly consists of land, the supply is treated as made by person A to person C.

  7. Section 60 overrides this section.

Notes
  • Section 60B: inserted, on (applying to supplies made on or after 1 April 2011), by section 20(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
  • Section 60B(4): amended, on , by section 200 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
  • Section 60B(5): repealed (with effect on 1 April 2011), on , by section 224(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
  • Section 60B(6): amended (with effect on 1 April 2011), on , by section 224(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).