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Goods and Services Tax Act 1985

Special cases

56B: Branches and divisions in relation to certain imported goods and services

You could also call this:

"Tax rules for New Zealand businesses with branches in and out of the country"

Illustration for Goods and Services Tax Act 1985

This section is about supplies of goods or services that are treated as being made in New Zealand. It applies to you if you have a supply of goods or services that is treated this way under section 8(4B) or if you have an output tax liability under section 20(3JC).

If you do business both in and out of New Zealand through different branches or divisions, each branch or division is treated as a separate person. A branch or division in New Zealand is treated as a resident, and one outside New Zealand is treated as a non-resident.

The head office of a company is also considered a branch or division of the company for the purpose of this section. This section applies to you whether or not your branch or division is registered under section 56.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM84891.

Topics:
Money and consumer rights > Taxes
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Part 9Special cases

56BBranches and divisions in relation to certain imported goods and services

  1. This section applies to a supply of goods or services that is treated by section 8(4B) as being made in New Zealand, or in relation to which an output tax liability under section 20(3JC) arises.

  2. If a person carries on activities both inside and outside New Zealand through branches or divisions—

  3. each branch or division is treated as being a separate person; and
    1. a branch or division inside New Zealand is treated as being a resident; and
      1. a branch or division outside New Zealand is treated as being a non-resident; and
        1. an activity carried on by a branch or division is treated as being carried on separately by the branch or division.

          1. For the purpose of this section, a head office of a company is a branch or division of the company.

          2. This section applies whether or not a branch or division of the person is registered under section 56.

          Notes
          • Section 56B: inserted, on , by section 165 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
          • Section 56B heading: amended, on , by section 35(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
          • Section 56B(1): amended, on , by section 35(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
          • Section 56B(1): amended, on , by section 70 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).