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Goods and Services Tax Act 1985

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

22: Goods and services acquired before incorporation

You could also call this:

"Tax refunds for things bought before a company is set up"

Illustration for Goods and Services Tax Act 1985

When you start a company, you might buy things before it's officially set up. If you pay tax on these things, the company can claim it back. This happens if you buy the things for the company's business and don't use them for anything else. The company will be treated as if it bought the things and paid the tax when it pays you back for them. You must have bought the things within six months of the company being set up and the company needs to have records of the purchase. The tax rules for this are in section 8(1) and section 12(1). If you sell the things to the company, or if you bought them more than six months before the company started, this rule doesn't apply. The company also needs to have enough records to claim the tax back.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM83965.

Topics:
Money and consumer rights > Taxes
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23: Payment of tax, or

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

22Goods and services acquired before incorporation

  1. Any company, being a registered person, shall, where any amount of tax has been charged or levied pursuant to section 8(1) or section 12(1) in relation to the acquisition of goods and services for or on behalf of that company or in connection with the incorporation of that company, and where those goods and services were acquired prior to incorporation by a person who—

  2. became a member, officer, or employee of the company and was reimbursed by the company for the whole amount of the consideration paid for the goods and services; and
    1. acquired those goods and services for the purpose of a taxable activity to be carried on by the company and has not used those goods and services for any purpose other than such taxable activity,—
        1. be deemed to be the recipient of the goods and services and to have paid any tax charged or levied pursuant to section 8(1) or section 12(1) as if the supply or the payment of the tax had been made during the taxable period in which the reimbursement referred to in paragraph (a) is made: provided that this section shall not apply in relation to any goods and services where—
      1. the supply of those goods and services by that person to the company is a taxable supply, or is a supply of secondhand goods not being a taxable supply; or
        1. those goods and services were so acquired more than 6 months prior to the date of incorporation of the company; or
          1. the company does not hold sufficient records to establish the particulars relating to the deduction to be made.
              1.

            Notes
            • Section 22: amended, on , by section 289(1) of the Customs and Excise Act 1996 (1996 No 27).