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Goods and Services Tax Act 1985

Returns and payment of tax - Supply information and supply correction information

19O: Treatment of fractional amounts of cent in information

You could also call this:

"Rounding cents in tax amounts: what to do with fractions of a cent"

Illustration for Goods and Services Tax Act 1985

When you show tax amounts in cents, you might have a fraction of a cent. If the fraction is less than or equal to half a cent, you can ignore it. If the fraction is more than half a cent, you can show it as 1 cent.

You can apply this rule to each individual tax amount or to the total of several tax amounts. You can choose how you want to apply this rule, but you must do it the same way for all tax amounts in a certain period. This rule is part of the Goods and Services Tax Act 1985, which was amended by the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022.

You must pick one way to apply this rule and use it for the whole taxable period. This helps keep your tax information consistent and easy to understand. It is important to follow this rule when showing tax amounts in cents.

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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=LMS849298.

Topics:
Money and consumer rights > Taxes
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"Getting information about your online purchases from marketplaces"

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19P: Commissioner may approve use of symbols, etc, on electronically transmitted information, or

"The Commissioner can allow special symbols on electronic messages about goods and services."

Part 3Returns and payment of tax
Supply information and supply correction information

19OTreatment of fractional amounts of cent in information

  1. For taxable supply information or supply correction information that is required to show an amount of tax consisting of a number of dollars and cents together with a fraction or part of a cent, the fraction or part of the cent,—

  2. if less than or equal to half of a cent, may be disregarded:
    1. if more than half of a cent, may be shown as being equal to 1 cent.

      1. A registered person may apply subsection (1) to—

      2. each individual amount of tax relating to a supply; or
        1. a total of individual amounts of tax relating to a supply.

          1. A registered person must consistently apply 1 of the alternative approaches given by subsection (2) for a taxable period in which the registered person relies on subsection (1).

          Notes
          • Section 19O: inserted, on , by section 19(1) (and see section 19(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).