New Zealand – Follow-up on GST proposals for bodies corporate

New Zealand – Follow-up on GST proposals for bodies corporate

June 2014 – The Inland Revenue Department has released guidance addressing how it will approach to the government’s announcement that the law will be amended retroactively from 6 June 2014 to remove goods and services tax (GST) registered bodies corporate from the GST rules.

In general, if a body corporate is already GST-registered (and not voluntarily) it will need to continue charging GST on supplies, and filing returns. The GST paid will be refunded when the law is changed.

Similarly, a body corporate can continue to claim GST refunds, but with the provision that these will need to be repaid when the law changes. The Inland Revenue’s operational statement does not rule out the possibility of use of money interest or penalties applying.