New Zealand: Sales Taxes: VAT, GST

Offshore businesses must now comply with local goods and services tax requirements if annual sales to New Zealand exceed the threshold.

Following is a summary of the key VAT and wider tax updates from the past month.

Overseas businesses must be aware of and update their systems to comply with new GST legislation in New Zealand.

The Insolvency Practitioners Bill and Taxation (Annual Rates, Returns Filing, and Remedial Matters) Bill are delayed.

Recent NZ judgment relating to tax liability of receivers, liquidators and directors of companies in receivership and liquidation.

From 1 April 2011, the GST rules for "land" have changed. Contracts for the sale of land need to be amended to deal with these changes. What began as a move to crack down on "phoenix" frauds has resulted in GST being effectively turned off for supplies between registered persons involving land. But this comes with significant compliance requirements. This Brief Counsel explains what you need to know before entering into agreements under the new rules.