Inland Revenue proposes some GST changes..
Some businesses make supplies which are partly exempt from GST. It’s going to be possible to get an agreement with Inland Revenue on the proportion, which can be treated as exempt.
Sometimes a business, which transports goods to and from New Zealand, also has to transport them through New Zealand. GST on the cost is zero rated. However, if a contractor is engaged to do this, zero rating does not apply. The law is to be changed. This will mean any cartage contractor performing this type of service will not be required to charge GST on that service.
Some people have to register for GST on income derived from assets which are used partly privately and partly for business. This is because the business income goes over the $60,000 threshold for GST registration. A typical example can be a beach cottage. When it is sold the owner usually has to pay GST on the selling price. Currently the full capital gain is subject to GST with no allowances made for the private use of the asset – say 20 percent. So you might have a situation where the cottage is sold for $1.15 million. A total of $150,000 goes to Inland Revenue for GST. Under the new rules this will be reduced by $30,000 to $120,000. This change is to be backdated to February 2020.
Instead of having to get Inland Revenue approval for a buyer-created tax invoice, it is going to be sufficient to have an agreement between the registered buyer and the registered seller.
Note: none of this is law yet and could be changed
