Plain language law

New Zealand law explained for everyone

Goods and Services Tax Act 1985

Special cases

60: Agents and auctioneers

You could also call this:

"Rules for helpers like agents and auctioneers when buying or selling goods and services"

When someone acts for another person, like an agent, the law says the supply of goods and services is made by the principal, not the agent. You can think of a principal like a boss and an agent like a helper. The helper acts on behalf of the boss.

If the supply is taxable, the agent can give out information about the taxable supply, but the boss cannot give out the same information. The agent must keep records so the boss's name, address, and registration number can be found.

In some cases, the boss and the agent can agree that the agent is making the supply, not the boss. This can happen when the agent is selling goods or services on behalf of the boss through a marketplace.

There are special rules for auctioneers, who are like special helpers who sell goods for others. If the boss and the auctioneer agree, the supply can be treated as if the auctioneer made it, not the boss.

The law also says that when a registered person makes a taxable supply to an agent, the supply is treated as if it was made to the boss, not the agent. But the agent can ask for information about the taxable supply, and the registered person can give it to them.

In some situations, the supply can be treated as two separate supplies: one from the boss to the agent, and another from the agent to the buyer. This can happen when the boss and the agent agree, or when the agent is selling goods or services through a marketplace.

You can read more about these rules in section 60C, section 60CB(7), and section 60D of the Goods and Services Tax Act. There are also special rules for imports and exports, which you can read about in section 11, section 11A, section 11AB, and section 11B of the Act.

If you are an agent or a boss, you need to keep good records so you can figure out who made the supply and who needs to pay tax. You should also talk to the other person, either the boss or the agent, to make sure you both agree on who made the 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=DLM85221.

Topics:
Money and consumer rights > TaxesMoney and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
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"When you do things in New Zealand for someone who lives overseas, you are responsible for their tax returns and payments."

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60B: Nominated recipients of supplies, or

"When someone buys something for another person to use"

Part 9Special cases

60Agents and auctioneers

  1. Subject to this section, for the purposes of this Act, where an agent makes a supply of goods and services for and on behalf of any other person who is the principal of that agent, that supply shall be deemed to be made by that principal and not by that agent: provided that, where that supply is a taxable supply, that agent, being a registered person, may, notwithstanding anything in this Act, issue taxable supply information or supply correction information in relation to that supply as if that agent had made a taxable supply, and to the extent that the taxable supply information or supply correction information relates to that supply, that principal shall not also issue, as the case may be, taxable supply information or supply correction information.

  2. Despite subsection (1), subsection (1AB) applies to an agent who—

  3. is resident in New Zealand; and
    1. makes supplies for and on behalf of a non-resident principal of—
      1. remote services to a person resident in New Zealand:
        1. distantly taxable goods:
          1. listed services.

          2. The principal and the agent may agree that the agent, and not the principal, is treated as making the supply in the course and furtherance of a taxable activity carried on by them.

          3. Despite subsection (1), when a principal and their agent agree, and record their agreement in a document, either in relation to a particular supply or for a type of supply, that this subsection applies to a supply of goods or services, the supply is treated for the purposes of the Act as 2 separate supplies, being—

          4. a supply of goods and services from the principal to the agent; and
            1. a supply of those goods and services from the agent to the recipient, treating the agent as if they were the principal for the purpose of the supply.

              1. For the purposes of sections 60C, 60CB(7), and 60D, an operator of a marketplace or an underlying supplier who makes supplies of goods or services to recipients through the marketplace may treat a supply as 2 separate supplies, being—

              2. a supply of goods and services from the underlying supplier to the operator of the marketplace; and
                1. a supply of those goods and services from the operator of the marketplace to the recipient, treating the operator as if they were the underlying supplier of the goods and services.

                  1. For the purposes of sections 60C and 60CB(2), when a listing intermediary is interposed between an operator of an electronic marketplace and an underlying supplier, the operator, supplier, and listing intermediary must treat the supply as 3 separate supplies, being—

                  2. a supply from the underlying supplier to the listing intermediary:
                    1. a supply from the listing intermediary to the operator:
                      1. a supply from the operator to the recipient of the supply.

                        1. Subject to this section, for the purposes of this Act, where any registered person makes a taxable supply of goods and services to an agent who is acting on behalf of another person who is the principal for the purposes of that supply, that supply shall be deemed to be made to that principal and not to that agent: provided that that agent may nevertheless request that that agent be issued with taxable supply information and that registered person may issue taxable supply information or supply correction information as if the supply were made to that agent.

                        2. Despite subsection (2), when a principal and their agent agree, and record their agreement in a document, either in relation to a particular supply or for a type of supply, that this subsection applies to a supply of goods or services, the supply by a person is treated for the purposes of the Act as 2 separate supplies, being—

                        3. a supply of goods and services from the person to the agent, treating the agent as if they were the principal for the purpose of the supply; and
                          1. a supply of those goods and services from the agent to the principal.

                            1. Where taxable supply information or supply correction information in relation to a supply has been issued—

                            2. by an agent pursuant to subsection (1); or
                              1. to an agent pursuant to subsection (2),—
                                  1. the agent shall maintain sufficient records to enable the name and address and registration number (if any) of the principal to be ascertained.

                                1. For the purposes of subsection (5), the expression auctioneer means a registered person carrying on a taxable activity which comprises or includes the supply by auction of goods as an auctioneer or agent for or on behalf of another person (hereafter in this section referred to as a principal).

                                2. Notwithstanding anything in the foregoing provisions of this section, where the principal and the auctioneer agree to have a supply by auction of any goods, not being a taxable supply, treated as if that supply had been made by that auctioneer and not by that principal, that supply shall be charged with tax as if it were made by that auctioneer in the course or furtherance of that auctioneer's taxable activity and that auctioneer may—

                                3. recover the amount of tax charged on that supply from that principal as a debt together with the costs of recovery in any court of competent jurisdiction; or
                                  1. retain or deduct the same out of any money in that auctioneer's hands belonging or payable to that principal.

                                    1. Notwithstanding anything in subsection (2), where any registered person makes a taxable supply (not being a supply that is charged with tax at the rate of 0% pursuant to section 11, 11A, 11AB or 11B) of goods and services to an agent, being a registered person, who is acting for or on behalf of another person who is the principal for the purposes of that supply, and—

                                    2. that principal is a non-resident and is not a registered person; and
                                      1. that supply is directly in connection with either the exportation, or the arranging thereof, of goods from New Zealand to any country or place outside New Zealand, or the importation, or the arranging thereof, of goods to New Zealand from any country or place outside New Zealand, including, in either case, the transportation of those goods within New Zealand as part of that exportation or, as the case may be, importation,—
                                          1. this Act shall, where that agent and that principal agree, have effect as if that supply were made to that agent and not to that principal.

                                        1. Despite subsection (1), a supply of goods, being goods to which section 12(1) applies, that have been imported by an agent who is acting for and on behalf of the principal, is treated as being a supply made by the agent and not by the principal if—

                                        2. the principal is a non-resident and is not a registered person; and
                                          1. the agent is a resident and is a registered person at the time the goods are imported; and
                                            1. the principal and agent agree that the supply was made by the agent and not by the principal.

                                              Notes
                                              • Section 60(1): substituted (with effect on 3 December 1985), on , by section 31(1) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).
                                              • Section 60(1) proviso: amended, on , by section 39(1)(a) (and see section 39(4) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                                              • Section 60(1) proviso: amended, on , by section 39(1)(b) (and see section 39(4) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                                              • Section 60(1A): inserted, on , by section 71(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
                                              • Section 60(1A)(b): replaced, on , by section 151(1) (and see section 151(2) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
                                              • Section 60(1AB): inserted, on , by section 71(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
                                              • Section 60(1B): inserted, on , by section 143 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
                                              • Section 60(1B): amended, on , by section 199 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                                              • Section 60(1C): inserted, on , by section 71(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
                                              • Section 60(1C): amended (with effect on 1 April 2024), on , by section 234(1)(a) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                                              • Section 60(1C): amended (with effect on 1 April 2024), on , by section 234(1)(b) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                                              • Section 60(1C): amended, on , by section 36(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                                              • Section 60(1C)(a): amended, on , by section 36(3) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                                              • Section 60(1C)(b): amended, on , by section 36(4) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                                              • Section 60(1D): inserted, on , by section 151(1B) (and see section 151(2) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
                                              • Section 60(1D): amended (with effect on 1 April 2024), on , by section 234(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                                              • Section 60(2) proviso: amended, on , by section 39(2)(a) (and see section 39(4) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                                              • Section 60(2) proviso: amended, on , by section 39(2)(b) (and see section 39(4) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                                              • Section 60(2B): inserted, on , by section 370 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                                              • Section 60(3): amended, on , by section 39(3) (and see section 39(4) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                                              • Section 60(6): added (with effect on 3 December 1985), on , by section 31(3) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).
                                              • Section 60(6): amended, on , by section 161 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
                                              • Section 60(6): amended, on (applying on and after 10 October 2000), by section 113(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
                                              • Section 60(6)(a): amended, on , by section 167(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
                                              • Section 60(7): added, on (applying on and after 10 October 2000), by section 113(2) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
                                              • Section 60(7)(a): amended, on , by section 167(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
                                              • Section 60(7)(b): amended, on , by section 167(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).