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Goods and Services Tax Act 1985

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

25: Adjustments for inaccuracies

You could also call this:

"Fixing mistakes in your tax information"

Illustration for Goods and Services Tax Act 1985

If you are a registered person and you make a mistake when sending information about a supply of goods and services, you need to fix that mistake. You might have made a mistake about the supply, like getting the description wrong, or the amount of money involved, or where it happened, or when it happened. You might have also made a mistake about the tax rate or the amount of tax you charged.

If you have made a mistake and you have already sent in your tax return, you will need to make an adjustment in your next tax return. This adjustment will depend on whether you charged too much or too little tax. If you charged too much tax, you might need to give some money back. If you charged too little tax, you will need to pay the difference.

You can find more information about how to make adjustments in your tax return by looking at section 20(3). This section explains how you can make deductions if you have made a mistake. You should also look at section 20(3) if you need to know more about how to make a deduction when you have been given new information about a supply.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM83995.

Topics:
Money and consumer rights > Taxes
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Part 3Returns and payment of tax
Calculation of tax payable: deductions, apportionment, other adjustments

25Adjustments for inaccuracies

  1. This section applies where, in relation to a supply of goods and services by a registered person, the registered person issues taxable supply information or supply correction information, or makes a return for a taxable period, containing an inaccuracy that is or arises from 1 or more of—

  2. a cancellation of the supply:
    1. a return, to the supplier, of all or part of the supply:
      1. an incorrect description of the supply:
        1. an incorrect amount of consideration:
          1. an incorrect place of supply:
            1. an incorrect time of supply:
              1. an incorrect rate of tax:
                1. an incorrect amount of tax charged:
                  1. an incorrect description of the supplier or recipient of the supply.

                    1. For the purposes of subsection (1)(d), the previously agreed consideration for the supply of a pharmaceutical is not an incorrect amount of consideration if part of the consideration for the supply has been rebated to Pharmac (acting on its own account or as an agent for a public authority) under a Pharmac agreement.

                    2. Repealed

                    3. Where a supplier has accounted for an incorrect amount of output tax for a taxable period as a consequence of an inaccuracy referred to in subsection (1), that supplier shall make an adjustment in calculating the tax payable by that supplier in the return for the taxable period during which it has become apparent that the output tax is incorrect, and if—

                    4. the output tax properly charged in relation to that supply exceeds the output tax actually accounted for by the supplier, the amount of that excess shall be deemed to be tax charged on a taxable supply made by that supplier and be attributable to the taxable period in which the adjustment is to be made, and not attributable to any prior taxable period:
                      1. the output tax actually accounted for exceeds the output tax properly charged in relation to that supply, that supplier shall make a deduction under section 20(3) of the amount of that excess.

                        1. Repealed

                        2. Repealed

                        3. Repealed

                        4. Repealed

                        5. If a registered person makes a deduction in a taxable period of input tax relating to a supply for which the person has taxable supply information and is then issued with supply correction information showing, or otherwise knows, that the taxable supply information includes an amount of output tax on the supply exceeding the correct amount, the amount of the excess tax is—

                        6. treated as being output tax charged on a taxable supply made by the registered person, to the extent that the input tax deducted relating to the supply exceeds the output tax properly charged on the supply; and
                          1. attributed to the taxable period in which the supply correction information is issued or the registered person becomes aware of the excess.

                            1. If a registered person makes a deduction in a taxable period of input tax relating to a supply for which the person has taxable supply information and is then issued with supply correction information showing that the correct amount of output tax on the supply exceeds the amount included in the taxable supply information, the amount of the excess tax is treated as being input tax that is a deduction under section 20(3) in the taxable period in which the supply correction information is issued, to the extent that the output tax properly charged on the supply exceeds the input tax deducted relating to the supply.

                            2. Repealed

                            3. Repealed
                            Notes
                            • Section 25 heading: replaced, on , by section 31(1) (and see section 31(11) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                            • Section 25(1): replaced, on , by section 31(2) (and see section 31(11) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                            • Section 25(1): amended (with effect on 1 April 2023), on , by section 227(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                            • Section 25(1B): inserted (with effect on 1 April 2023), on , by section 227(2) (and see section 227(3) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                            • Section 25(1B): repealed, on , by section 31(3) (and see section 31(12) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                            • Section 25(2): amended, on , by section 31(4) (and see section 31(11) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                            • Section 25(2)(a): amended, on , by section 157 of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
                            • Section 25(2)(b): amended, on , by section 159(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
                            • Section 25(3): repealed, on , by section 31(6) (and see section 31(12) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                            • Section 25(3A): repealed, on , by section 31(6) (and see section 31(12) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                            • Section 25(3B): repealed, on , by section 31(6) (and see section 31(12) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                            • Section 25(3C): repealed, on , by section 31(6) (and see section 31(12) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                            • Section 25(4): replaced, on , by section 31(7) (and see section 31(11) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                            • Section 25(4): amended (with effect on 1 April 2023), on , by section 167(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                            • Section 25(4): amended, on , by section 31(8)(a)(i) (and see section 31(12) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                            • Section 25(4): amended, on , by section 31(8)(a)(ii) (and see section 31(12) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                            • Section 25(4): amended (with effect on 30 March 2022), on , by section 167(1) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                            • Section 25(4)(b): amended, on , by section 31(8)(b) (and see section 31(12) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                            • Section 25(5): replaced, on , by section 31(7) (and see section 31(11) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                            • Section 25(5): amended, on , by section 31(9)(a) (and see section 31(12) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                            • Section 25(5): amended, on , by section 31(9)(b) (and see section 31(12) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                            • Section 25(5): amended, on , by section 31(9)(c) (and see section 31(12) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                            • Section 25(5): amended, on , by section 31(9)(d) (and see section 31(12) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                            • Section 25(6): repealed, on , by section 31(10) (and see section 31(12) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                            • Section 25(7): repealed, on , by section 31(10) (and see section 31(12) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).