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New Zealand law explained for everyone

Goods and Services Tax Act 1985

General provisions

77: New Zealand or foreign currency

You could also call this:

"Paying tax: using New Zealand dollars or other currencies"

Illustration for Goods and Services Tax Act 1985

When you are dealing with money for goods and services tax, you must use New Zealand currency. If you are paying for something, the amount you pay must be in New Zealand dollars at the time of the purchase. You can find more information about what goods and services are taxable in sections like section 8(3)(ab) and section 8C. If you are a supplier from another country, you might be able to use a foreign currency for your supplies, but you have to follow certain rules.

If you choose to use a foreign currency, you will have to convert it to New Zealand dollars. You can do this on the day of the supply, or at the end of the taxable period, or when you file your tax return. You can also choose a different date, but you have to agree on it with the Commissioner. You can use the spot exchange rate for the foreign currency at the time of the supply, or a method approved by the Commissioner, as seen in section 10B.

Once you make this choice, you cannot change it for at least 24 months, unless the Commissioner says it is okay.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM85296.

Topics:
Money and consumer rights > Taxes
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Part 11General provisions

77New Zealand or foreign currency

  1. All amounts of money must, for the purposes of this Act, be expressed in terms of New Zealand currency, and in any case where and to the extent that any such amount is consideration in money for a supply, that amount must be expressed in terms of New Zealand currency as at the time of that supply.

  2. Despite subsection (1), a non-resident supplier of distantly taxable goods to which section 8(3)(ab) applies, or of remote services to which section 8(3)(c) applies, or of listed services referred to in section 8C, may choose to express the amount of consideration in money for their supplies in a foreign currency as at the time of supply.

  3. A non-resident supplier which makes an election under subsection (2) must, in a return, choose to convert foreign currency amounts into New Zealand currency amounts on—

  4. the date of the supply; or
    1. the last day of the relevant taxable period; or
      1. the earlier of—
        1. the date the supplier files their return for the relevant period:
          1. the due date for filing their return for the relevant period; or
          2. another date agreed between the supplier and the Commissioner.

            1. A non-resident supplier may not revoke an election under subsection (2) or (3) until at least 24 months after making the election, unless the Commissioner agrees otherwise.

            2. A supplier of distantly taxable goods who is required to determine under section 10B the value of an item of goods in a supply may, for that purpose, convert foreign currency amounts into New Zealand currency amounts using—

            3. the spot exchange rate for the foreign currency applying at the time of the supply; or
              1. a currency conversion method, and a time for which the method is applied for the supply, that are approved by the Commissioner for the purpose.

                Notes
                • Section 77: replaced, on , by section 74 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
                • Section 77(2): amended, on , by section 155(1) (and see section 155(2) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
                • Section 77(2): amended, on , by section 41(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                • Section 77(3)(aa): inserted (with effect on 1 October 2016), on , by section 253 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                • Section 77(5): inserted, on , by section 41(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).