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Goods and Services Tax Act 1985

Imposition of tax

8BB: Certain supplies by non-residents: determining whether recipient is registered person

You could also call this:

"How non-resident sellers check if you're a registered business when selling you something"

Illustration for Goods and Services Tax Act 1985

When a non-resident registered person sells something to you, they need to know if you are a registered person or not. You are a registered person if you are using the thing you bought for your business. The non-resident registered person will not charge you tax if you tell them you are a registered person or give them your registration number or New Zealand Business Number.

The non-resident registered person must not think you are a registered person if you do not tell them you are or give them your registration number. The Commissioner can decide on a different way for the non-resident registered person to check if you are a registered person. They can look at what is being sold, how much it costs, and the rules around the sale to help them decide.

The Commissioner can choose a different method if it is suitable for the type of thing being sold. They can consider the type of goods and services, their value, and the terms of the sale when choosing a method. You can find more information about the rules for certain types of sales in section 8(3)(ab), section 8(3)(c), and section 8(4).

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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=LMS288999.

Topics:
Money and consumer rights > Taxes
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Part 2Imposition of tax

8BBCertain supplies by non-residents: determining whether recipient is registered person

  1. This section applies when a non-resident registered person (the supplier) makes a supply to a person (the recipient) of—

  2. distantly taxable goods to which section 8(3)(ab) applies:
    1. remote services to which section 8(3)(c) applies:
      1. goods and services to which section 8(4) applies.

        1. The supplier must not treat the supply as being made to a registered person for use in the course or furtherance of the registered person’s taxable activity if the recipient does not meet the requirements of this section.

        2. A recipient meets the requirements of this section if the recipient notifies the supplier that the recipient is a registered person or provides the supplier with the recipient’s registration number or New Zealand Business Number.

        3. The Commissioner may prescribe, as an alternative to the method in subsection (2), a method that a supplier may use to determine whether the supply is made to a registered person for use in the course or furtherance of the registered person’s taxable activity, or may agree with the supplier on the use of another method to determine whether the supply is made to a registered person for use in the course or furtherance of the registered person’s taxable activity.

        4. In prescribing or agreeing to the use of an alternative method under subsection (3), the Commissioner may take into account—

        5. the nature of the supply, including, for example, whether the supply is of goods and services that are purchased only by a registered person in the course or furtherance of the registered person’s taxable activity:
          1. the value of the supply, including, for example, whether the supply is of a value that would be expected to be received only by a registered person in the course or furtherance of the registered person’s taxable activity:
            1. the terms and conditions related to the provision of the goods and services, including, for example, whether the supply is of goods and services that may be leased, licensed, or otherwise made available, for use by a registered person in the course or furtherance of the registered person’s taxable activity.

              Notes
              • Section 8BB: inserted, on , by section 12 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
              • Section 8BB(1): replaced, on , by section 128 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
              • Section 8BB(1B): inserted, on , by section 128 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).