New Zealand

Details

  • Service: Tax
  • Type: Business and industry issue
  • Date: 10/08/2010

Taxmail - Issue 2, August: GST transitional changes 

The Government today announced that draft legislation will be included in the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver and Remedial Matters) Bill to ease the transition for businesses into the 15% GST rate.

 

The concessional (GST) transitional provisions are elective on the part of the supplier, which means that there will be a cost/benefit trade-off for businesses to consider.

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The commentary on the proposed changes is available at: www.taxpolicy.ird.govt.nz.

 

A copy of the draft legislative amendments is available on request from Inland Revenue, or:

 

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Draft legislative amendments [PDF: 2MB]

 

Feedback on the proposals is requested by 16 August.


The new rules reflect the recommendations of the GST Advisory Panel, which was set up to ensure the transition ran smoothly.

 

The Advisory Panel has made these recommendations as a result of submissions from the public, business and tax advisors.

 

KPMG welcomes the changes, which should help businesses to better transition to the new GST rate in the short timeframe imposed.

 

However, some of the concessions may still create problems for businesses to grapple with.

 

If you have any questions on the above, please speak to your usual KPMG advisor or contact:

 

Peter Scott
Partner - Tax
Auckland
Phone: +64 9 367 5852

pscsott@kpmg.co.nz

 

John Cantin
Partner - Tax
Wellington
Phone: +64 4 816 4518

jfcantin@kpmg.co.nz

 

Jolayne Trim
Director- Tax
Auckland
Phone: +64 9 363 3589

jolaynetrim@kpmg.co.nz

Taxmail - Comment on topical tax issues from KPMG NZ Tax. 

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