Goods and Services Tax Act 1985

Returns and payment of tax

19B: Particulars to be furnished and prepared where change in accounting basis

You could also call this:

"What to do when you change how you keep track of money for tax purposes"

Illustration for Goods and Services Tax Act 1985

If the Commissioner tells you to change your accounting basis under section 19 or section 19A, you must give them details in a special form. You have to calculate the tax you need to pay because of the change in accounting basis. You must do this in the way the Commissioner says.

You need to give the Commissioner these details by the last day you can give them your tax return for the period before the change happens. This is according to section 16. You must include these details with your tax return and a notice about your tax assessment, as required by section 92B of the Tax Administration Act 1994.

If the Commissioner tells you to change your accounting basis, you may need to make some lists. You might need to list people you owe money to, or people who owe you money, depending on the type of change. You have to show how much money is owed as at the last day of the taxable period before the change happens.

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This page was last updated on 18 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM83458.

Topics:

Money and consumer rights > Taxes

19AB: Local authorities accounting on payments basis on and after 1 July 2001, or

"How local councils used to do their tax accounting from 2001 to 2013"

19C: Tax payable, or refund, where change in accounting basis, or

"Paying tax or getting a refund when you change how you account for tax"

Part 3Returns and payment of tax

19BParticulars to be furnished and prepared where change in accounting basis

Where the Commissioner directs a change in a registered person's accounting basis under section 19 or section 19A, the registered person shall furnish to the Commissioner particulars in the prescribed form calculating the tax payable in respect of the change in accounting basis.
The particulars required to be furnished under subsection (1) shall be furnished to the Commissioner not later than the last day for furnishing a return pursuant to section 16 for the taxable period preceding that in which the direction of the Commissioner takes effect.
The particulars required by subsection (1) must be furnished in a return that contains a notice of the assessment that must be made under section 92B of the Tax Administration Act 1994.
Where the Commissioner directs a change in a registered person's accounting basis under section 19 or section 19A, the registered person shall—
where the registered person has been directed to change from an invoice to a payments basis of accounting, or from a payments basis to an invoice basis,—
1. prepare a list of creditors of the registered person in relation to that person's taxable activity, showing the amounts due by that person as at the last day of the taxable period preceding that in which the direction takes effect; and
2. prepare a list of debtors of the registered person in relation to that person's taxable activity, showing the amounts due to that person as at the last day of the taxable period preceding that in which the direction takes effect:
where the registered person has been directed to change from an invoice to a hybrid basis of accounting, or from a hybrid basis to an invoice basis, prepare a list of creditors of the registered person in relation to that person's taxable activity, showing the amounts due by that person as at the last day of the taxable period preceding that in which the direction takes effect:
where that registered person has been directed to change from a payments basis to a hybrid basis of accounting, or from a hybrid basis to a payments basis, prepare a list of debtors of the registered person in relation to that person's taxable activity, showing the amounts due to that person as at the last day of the taxable period preceding that in which the direction takes effect.

Notes

Section 19B: inserted, on 1 April 1991 (applying to allow changes in a registered person's accounting basis in respect of taxable periods commencing on and after 1 April 1991), by section 3(1) of the Goods and Services Tax Amendment Act 1991 (1991 No 11).
Section 19B(2B): inserted, on 21 December 2004 (applying for taxable periods beginning on or after 1 April 2005), by section 148(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).