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Goods and Services Tax Act 1985

Returns and payment of tax - Calculation of tax payable: deductions, apportionment, other adjustments

21A: When adjustments required

You could also call this:

"When you need to fix mistakes in your tax calculations"

Illustration for Goods and Services Tax Act 1985

If you are a registered person, you must do some things at the end of an adjustment period. You need to work out the percentage of goods or services you used to make taxable supplies during that period. Then, you compare this percentage to what you intended to use or what you actually used before. If there is a difference and section 21(2)(c) or (d) does not apply, you must make an adjustment for the difference for that period. You have to make this adjustment if there is a percentage difference. This helps you keep track of your taxable supplies.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM83924.

Topics:
Money and consumer rights > Taxes
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21: Adjustments for apportioned supplies, or

"Fixing mistakes in tax for goods and services you partly use for business and partly for other things."

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21B: Adjustments when person or partnership becomes registered after acquiring goods and services, or

"Getting back GST on things you bought before registering for GST"

Part 3Returns and payment of tax
Calculation of tax payable: deductions, apportionment, other adjustments

21AWhen adjustments required

  1. A registered person must, at the end of an adjustment period,—

  2. identify the percentage actual use of the goods or services in making taxable supplies in the period; and
    1. compare the percentage actual use with percentage intended use or previous actual use, as applicable; and
      1. if a percentage difference arises and section 21(2)(c) or (d) does not apply, make an adjustment for any percentage difference for the adjustment period.

        Notes
        • Section 21A: substituted, on (applying to supplies made on or after 1 April 2011), by section 15(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
        • Section 21A(c): amended (with effect on 1 April 2011), on , by section 217 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).