Goods and Services Tax Act 1985

Transitional provisions

85E: Certain contracts entered into before 1 April 2024

You could also call this:

"Rules for online marketplaces with contracts made before 1 April 2024"

This section is about supplies of certain services that are made through an electronic marketplace. You need to know that this applies when the contract for the supply was entered into before 1 April 2024, and the time of supply is on or after 1 April 2024. The supply must also be one that would normally be subject to certain rules, as described in section 60C(2)(ab), if this section did not exist.

The operator of the electronic marketplace can choose not to apply these rules to the supply, as per section 60C(2)(ab). If the underlying supplier is a registered person, the operator must notify them of this choice and provide enough information for the supplier to correctly account for output tax on the supply.

If there is a listing intermediary involved, the operator must notify them instead, and provide enough information for the intermediary to pass on to the supplier, so the supplier can correctly account for output tax on the supply, as described in section 60CB(7) and section 60C(2)(ab).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS952450.


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Part 12Transitional provisions

85ECertain contracts entered into before 1 April 2024

  1. This section applies to a supply of listed services described in section 8C(2)(a) when—

  2. the supply is made through an electronic marketplace; and
    1. the contract under which the supply is made was entered into before 1 April 2024; and
      1. the time of supply for that supply takes place on or after 1 April 2024; and
        1. section 60C(2)(ab) would apply to the supply in the absence of this section.
          1. Subject to subsections (3) and (4), the operator of the electronic marketplace may choose that section 60C(2)(ab) will not apply to the supply. For the purposes of this subsection and subsection (3), a listing intermediary is treated as if they were the operator of the electronic marketplace if section 60CB(7) applies.

          2. If the underlying supplier is a registered person, the operator of the electronic marketplace may only apply subsection (2) if they take reasonable steps within a reasonable time to—

          3. notify the underlying supplier that the operator chooses not to apply section 60C(2)(ab) to that supply; and
            1. provide sufficient information to the underlying supplier to enable the underlying supplier to correctly account for output tax on the supply.
              1. If section 60CB(7) does not apply and a listing intermediary is interposed between the underlying supplier and the operator of the electronic marketplace, the operator may only apply subsection (2) if they take reasonable steps within a reasonable time to—

              2. notify the listing intermediary that the operator chooses not to apply section 60C(2)(ab) to that supply; and
                1. provide sufficient information to the listing intermediary for the listing intermediary to provide to the underlying supplier to enable the underlying supplier to correctly account for output tax on the supply.
                  Notes
                  • Section 85E: inserted, on , by section 157B of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).