21BAdjustments when person or partnership becomes registered after acquiring goods and services

1. This section applies when—

2. before becoming a registered person, a person that is not a unit title body corporate acquires—
   1. goods or services on which tax has been charged under section 8(1):
   2. goods entered by them for home consumption under the Customs and Excise Act 2018 on which tax has been levied under section 12(1):
   3. secondhand goods—
      1. that are supplied to the person by way of sale; and
      2. that have always been situated in New Zealand or have had tax levied on them as described in subparagraph (ii); and
      3. the supply of which is not a taxable supply; and
3. at the time of registration or at a later time, the person or a partnership of which the person is a member (the registered user) uses the goods for making taxable supplies.

4. The registered person may make an adjustment under section 21, 21A if the registered user meets the requirements of subsection (3) for the supply, or 21FB, treating, as the first adjustment period, the period (the initial period) that—

5. starts on the date of the acquisition of the goods or services; and
6. ends on the first balance date that falls after the events referred to in subsection (1)(b).

7. A registered user meets the requirements of this subsection for a supply by—

8. having a record of the details of the supply required by either of—
   1. section 19F for a taxable supply:
   2. section 19H for a supply that is not a taxable supply; and
9. using a method that provides a fair and reasonable result in identifying the percentage actual use of the goods or services in the initial period referred to in subsection (2).

10. Repealed

11. In relation to a supply of secondhand goods, the tax fraction applying to the supply is the tax fraction that applied at the time the goods were purchased by the person.