19NSupply correction information

1. This section applies where a registered person has previously issued taxable supply information that includes an inaccuracy.

2. Where a registered person has provided to a person (the recipient) taxable supply information that includes an inaccuracy in the amount of tax charged, or the registered person has taken a tax position for a supply to the recipient in accounting for an incorrect amount of output tax on the supply, and subsections (3), (4), and (7) do not apply, the registered person must provide to the person supply correction information for the supply.

3. A registered person is not required to provide supply correction information under subsection (2) for a supply if—

4. the tax shown in the taxable supply information for the supply exceeds the tax charged on the supply; and
5. the excess arises as a result of the recipient’s accepting a discount offered by the supplier—
   1. for prompt payment, and the terms of the prompt payment discount offer are stated in the taxable supply information; or
   2. by agreement, and, if the terms of the agreement are not part of the usual business terms between the recipient and the supplier, the terms of the agreement are recorded by the recipient and supplier.

6. A registered person is not required to provide supply correction information under subsection (2) for a supply because part of the consideration shown in the taxable supply information for the supply has been rebated under a Pharmac agreement to Pharmac, whether Pharmac is acting on its own account or as an agent for a public authority.

7. A registered person who has received a taxable supply from another registered person (the supplier) may issue supply correction information under subsection (2) for taxable supply information for the supply if—

8. the registered person and the supplier agree that—
   1. the supplier will not issue supply correction information under subsection (2) for taxable supplies by the supplier to the registered person to which the agreement relates; and
   2. the registered person will issue supply correction information, for each taxable supply by the supplier to the registered person to which the agreement relates; and
9. the registered person and the supplier record the reasons for entering the agreement if the terms of the agreement are not part of the normal terms of business between the registered person and the supplier; and
10. the Commissioner does not, before the supply correction information is issued, invalidate the agreement because the Commissioner considers that the registered person and the supplier have failed to comply with the agreement or with paragraph (b).

11. A supplier may issue supply correction information under subsection (2) to a recipient if—

12. the supply correction information relates to taxable supply information issued by the registered person for taxable supplies, or a class or classes of taxable supplies, made to the recipient, or to a class or classes of recipients that include the recipient; and
13. the supplier’s records show that the information provided to the recipient, in the supply correction information and the taxable supply information for the supply, includes the details required under subsection (2) for each supply to the recipient to which the supply correction information relates.

14. Supply correction information for a supply may not be issued under subsection (2) after whichever of the following is the date that is, or is the earlier of the dates that are, applicable to the supply:

15. if the supply is not described in paragraph (b) or (c), the date that is 4 years from the end of the taxable period in which the registered person provides the return for the taxable period in which the supply was made:
16. if the supply gives rise to an overpayment of tax that is described in section 45(1), (2), or (3) and the Commissioner is satisfied that the overpayment is a result of a clear mistake or simple oversight of the registered person, the date that is 4 years from the end of the 4-year period referred to in the subsection that describes the overpayment:
17. if the supply was not zero-rated, because section 11(1)(mb) was incorrectly applied to the supply, the date that is 7 years from the date of settlement of the transaction relating to the supply.

18. If a person claims to have lost supply correction information, the registered person who issued the information may provide a copy to the person.

19. Where the Commissioner is satisfied that there are or will be sufficient records available to establish the particulars of any supply or class of supplies, and that it would be impractical to require that supply correction information be provided under this section, the Commissioner may determine that, subject to any conditions that the Commissioner may consider necessary,—

20. any 1 or more of the particulars specified in section 19E(1) shall not be contained in the supply correction information; or
21. supply correction information is not required to be provided.