Goods and Services Tax Act 1985

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

21C: Adjustments for first and subsequent adjustment periods

You could also call this:

"Fixing tax mistakes for the first time and later"

Illustration for Goods and Services Tax Act 1985

When you are working out the tax payable, you need to make some adjustments. For the first adjustment period, you compare what you intended to use the goods or services for with what you actually used them for. You do this to figure out the right amount of tax.

For the next adjustment periods, you compare what you actually used the goods or services for with what you used them for in the last period you made an adjustment, which is called the previous actual use. If you haven't made an adjustment before, you compare the actual use with what you intended to use the goods or services for, as mentioned in section 21A(b). This helps you work out the right amount of tax to pay.

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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=DLM83934.

Topics:

Money and consumer rights > Taxes

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"

21CB: Rate for change of use before 1 October 2010, or

"Old rules for changing how something is used before 1 October 2010"

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

21CAdjustments for first and subsequent adjustment periods

For the purposes of section 21A(b),—
for the first adjustment period applying to the goods or services, the person must compare the percentage intended use of the goods or services with their percentage actual use:
for a subsequent adjustment period, the person must compare the percentage actual use of the goods or services with—
1. their percentage actual use in an earlier period that is the most recent period in which an adjustment has been made (the previous actual use):
2. their percentage intended use, if no adjustment has been made in an earlier period.

Notes

Section 21C: substituted, on 1 April 2011 (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).