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Goods and Services Tax Act 1985

Transitional provisions

85C: Certain contracts entered into before 1 December 2019

You could also call this:

"Contracts started before 1 December 2019 with regular payments"

Illustration for Goods and Services Tax Act 1985

If you have a contract for goods that started before 1 December 2019 and ends after that date, this law applies to you. The contract must have regular payments that are treated as separate supplies under section 9(3)(a) or (aa). The price for the goods must be set or reviewed every 396 days or less. You can choose how to treat the regular payments for goods when you file your tax returns. The time period for this choice starts on 1 December 2019 and ends on the earliest of either the contract end date or 396 days after the contract started.

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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=LMS290258.

Topics:
Money and consumer rights > Taxes
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85B: Certain contracts entered into before 1 October 2016, or

"Contracts started before 1 October 2016 with regular payments have special tax rules"

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85D: Transitional provision for certain supplies of listed services, or

"Special tax rules for people selling certain services online"

Part 12Transitional provisions

85CCertain contracts entered into before 1 December 2019

  1. This section applies to a supply of distantly taxable goods when—

  2. the contract under which the supply is made is for a fixed term that starts before 1 December 2019 and ends after that date; and
    1. the contract provides for periodic payments that are treated under section 9(3)(a) or (aa) as successive supplies; and
      1. under the contract, the consideration for the supply is set or reviewed for periods of 396 days or less during the term of the contract; and
        1. section 8(3)(ab) would apply to the supply in the absence of this section.

          1. Despite section 9(3)(a) or (aa), for the period described in subsection (3), the supplier of the goods may, in returns for the taxable periods in the period, choose to treat the periodic payments as not successively supplied for successive parts of the period of the contract.

          2. The period starts on 1 December 2019 and ends on the earlier of—

          3. the date on which the term of the contract ends:
            1. the date that is 396 days after the date of the contract.

              Notes
              • Section 85C: inserted, on , by section 42 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
              • Section 85C(1)(b): amended (with effect on 1 December 2019), on , by section 254(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
              • Section 85C(2): amended (with effect on 1 December 2019), on , by section 254(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).