Goods and Services Tax Act 1985

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

26B: Resale royalties

You could also call this:

"Tax on money artists get when their work is resold"

Illustration for Goods and Services Tax Act 1985

If you are a registered person and you get a resale royalty under section 18 of the Resale Right for Visual Artists Act 2023, you need to know how it affects your tax. You also need to have been told by the collection agency under regulation 10 of the Resale Right for Visual Artists Regulations 2024 that the resale of the artwork was not a supply that had tax charged on it under section 8.

When you get the resale royalty, you usually have to add some tax to the amount you owe for that period, which is worked out using the tax fraction of the royalty amount, including any part of it kept by the collection agency under section 20 of the Resale Right for Visual Artists Act 2023.

But if the resale of the artwork was zero-rated under section 11, then the royalty you get is also zero-rated, which means you do not have to add any tax to it.

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This page was last updated on 18 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1366850.

Topics:

Money and consumer rights > TaxesArts and culture > Arts funding

26A: Factored debts, or

"Selling debts and how it affects your taxes"

27: Assessment of tax, or

"The law about checking tax payments is no longer used."

Part 3Returns and payment of tax
Calculation of tax payable: deductions, apportionment, other adjustments

26BResale royalties

This section applies to a registered person who—
receives a resale royalty under section 18 of the Resale Right for Visual Artists Act 2023 in relation to or in respect of their taxable activity; and
was notified by the collection agency under regulation 10 of the Resale Right for Visual Artists Regulations 2024 that the resale of the original visual artwork which gave rise to the resale royalty was not a supply that was charged with tax under section 8.

Unless subsection (3) applies, the registered person must add to their output tax under section 20 for the taxable period in which they receive the resale royalty an amount equal to the tax fraction of the amount of the resale royalty, including any percentage of the resale royalty retained by the collection agency under section 20 of the Resale Right for Visual Artists Act 2023.
If the resale of the original visual artwork was zero-rated under section 11, the resale royalty paid to the right holder by the collection agency must also be zero-rated.

Notes

Section 26B: inserted (with effect on 1 December 2024), on 29 March 2025, by section 229 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).