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Goods and Services Tax Act 1985

Schedule 1: Non-taxable legislative charges

You could also call this:

"Charges that don't have tax, like some artwork resale payments"

Illustration for Goods and Services Tax Act 1985

This schedule is about charges that are not taxable. You need to know what charges are included. The charges are set out under section 5(6ED)(a) of the Goods and Services Tax Act 1985. These charges are not considered when working out the tax on goods and services. You will see some specific charges mentioned, like resale royalties. A resale royalty is a payment made when an artwork is sold again. This payment is made to the artist or the person who owns the rights to the artwork. Some resale royalties are not taxable, like the ones paid under the Resale Right for Visual Artists Act 2023. You can find more information about this in section 17 and section 18 of that Act. Also, see section 26B, which talks about tax on resale royalties in certain situations, and section 8, which is about charging tax on sales.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS853210.

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1Non-taxable legislative charges Empowered by ss 5(6ED), 90

1General

  1. This schedule sets out the charges, including fees and levies, that, under section 5(6ED)(a), are not consideration for a supply of goods and services under section 5(6EC).

Notes
  • Schedule 1 clause 1: inserted (with effect on 1 April 2023), on , by section 239 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).

2Resale royalties

  1. A resale royalty paid to the collection agency under section 17 of the Resale Right for Visual Artists Act 2023.

  2. A resale royalty paid to the right holder in respect of the resale of an original visual artwork under section 18 of the Resale Right for Visual Artists Act 2023.

  3. See section 26B, which requires a registered person who receives a resale royalty in relation to or in respect of their taxable activity to pay tax equal to the tax fraction of the resale royalty if they are notified by the collection agency that the sale of the artwork that gave rise to the resale royalty was not charged with tax under section 8.

Notes
  • Schedule 1 clause 2: inserted (with effect on 1 April 2023), on , by section 239 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).