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Goods and Services Tax Act 1985

Imposition of tax

11AB: Zero-rating of telecommunications services

You could also call this:

"No tax on some phone and internet services"

Illustration for Goods and Services Tax Act 1985

When you supply telecommunications services, you usually have to charge tax. But you do not have to charge tax if you supply these services to an overseas telecommunications supplier and you are a resident. You also do not have to charge tax if you supply telecommunications services to someone who is not an overseas telecommunications supplier, for a service that started outside New Zealand under section 8(9).

You do not have to charge tax if you supply inbound mobile roaming services to someone who does not live in New Zealand. But if you supply outbound mobile roaming services, this rule does not apply to you. This means you have to charge tax for outbound mobile roaming services.

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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=DLM83035.

Topics:
Money and consumer rights > Taxes
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11A: Zero-rating of services, or

"Some services have no tax, like transporting people or goods overseas"

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11B: Zero-rating of some supplies by territorial authorities or water organisations, some supplies involving contributions to local authorities or water organisations, or

"Some council services are tax-free if they're paid for in a special way or if land is exchanged."

Part 2Imposition of tax

11ABZero-rating of telecommunications services

  1. A supply of services that is chargeable with tax under section 8 must be charged at the rate of 0% if—

  2. the services are the supply of telecommunications services to an overseas telecommunications supplier by a telecommunications supplier who is a resident; or
    1. the services are the supply of telecommunications services to a person, not being an overseas telecommunications supplier, for a telecommunications service that is initiated outside New Zealand under section 8(9); or
      1. the services are inbound mobile roaming services supplied to a non-resident.

        1. Subsection (1)(b) does not apply to outbound mobile roaming services.

        Notes
        • Section 11AB: inserted, on , by section 157 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
        • Section 11AB(1)(a): amended, on , by section 150(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
        • Section 11AB(1)(b): amended, on , by section 185(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
        • Section 11AB(1)(b): amended (with effect on 1 July 2003), on , by section 150(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
        • Section 11AB(1)(c): inserted, on , by section 185(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
        • Section 11AB(2): inserted, on , by section 185(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).