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Goods and Services Tax Act 1985

General provisions

78A: Returns to be furnished in 2 parts for taxable period in which change in rate of tax occurs

You could also call this:

"Fill out tax returns in two parts when tax rates change"

Illustration for Goods and Services Tax Act 1985

When there is a change in the tax rate, you need to fill out a special return form. This form has two parts: one part is for the time before the new tax rate starts, and the other part is for the time after the new tax rate starts. You will fill out these two parts as if they were one return form, and you will send them to the Commissioner.

If you send the two parts separately, the Commissioner will not consider your return complete until they get the second part. You must fill out the return form in a way that the Commissioner says is correct. If you are required to make a return under section 16(4) for a period when a new tax rate starts, you will fill out a return in two parts, unless the new rate starts on the first day of that period.

If the Commissioner has determined your taxable period and it ends just before or after the day the new tax rate starts, you can choose to ignore that determination for the two taxable periods that would have ended or started on those days. You will then fill out your returns as if the earlier period ended before the new tax rate started, and the later period started on the day the new tax rate came into force. You must notify the Commissioner if you want to do this.

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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=DLM85507.

Topics:
Money and consumer rights > Taxes
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78AA: Exceptions to effect of increase of tax, or

"Some situations where you don't have to pay the new tax rate when it increases"

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78B: Adjustments to tax payable for persons furnishing returns following change in rate of tax, or

"Changing tax rates: how to adjust the tax you pay"

Part 11General provisions

78AReturns to be furnished in 2 parts for taxable period in which change in rate of tax occurs

  1. Where there is a change in the rate of tax imposed by section 8, every registered person who does not have a taxable period beginning on the same day as the date on which the new rate comes into force (other than a person with a taxable period commencing within 7 days before or after the day immediately preceding that date who furnishes returns in accordance with subsection (5)) shall furnish to the Commissioner a return in 2 parts for the taxable period in which the new rate comes into force, comprising—

  2. a Part 1 return, covering the period beginning on the first day of the person's taxable period and ending with the day immediately preceding the date on which the new rate comes into force; and
    1. a Part 2 return, covering the period beginning on the date on which the new rate comes into force and ending with the last day of the person's taxable period.

      1. Each such part shall be furnished in a form or forms prescribed by the Commissioner, and the 2 parts shall together be deemed to form a single return.

      2. If the 2 parts are furnished separately, the Commissioner shall be deemed for the purposes of section 46 not to have received the return until the date on which the later furnished of the 2 parts is received by the Commissioner.

      3. Every person, whether registered or not, who is required to make a return pursuant to section 16(4) in respect of any period in which a new rate of tax comes into force shall (except where the new rate comes into force on the first day of that period) furnish a return in 2 parts in accordance with this section, as if the period for which the return is required to be made were a taxable period.

      4. Any registered person who, pursuant to a determination of the Commissioner under section 15E, has a taxable period that ends within 7 days before or after the day immediately preceding the date on which a new rate of tax comes into force may, upon notification to the Commissioner, disregard that determination in relation to the 2 taxable periods that, but for that determination, would have—

      5. ended with the day immediately preceding the date on which the new rate comes into force; or
        1. commenced with the day on which the new tax rate comes into force;—
            1. and where a person so notifies the Commissioner, that person shall accordingly furnish returns in respect of those 2 taxable periods as if—
          1. the earlier of those periods ended with the day immediately preceding the date on which the new rate of tax comes into force; and
            1. the later of those periods commenced on the day on which the new rate of tax comes into force.

              Notes
              • Section 78A: inserted, on , by section 4(1) of the Goods and Services Tax Amendment Act (No 3) 1988 (1988 No 125).
              • Section 78A(1): amended, on , by section 21(1) of the Finance Act 1989 (1989 No 13).
              • Section 78A(4): amended, on (applying for taxable periods ending on or after 31 March 2007), by section 297(1)(a) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
              • Section 78A(5): added, on , by section 21(2) of the Finance Act 1989 (1989 No 13).
              • Section 78A(5): amended, on , by section 203 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
              • Section 78A(5): amended, on , by section 297(1)(b) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).