Tax Policy

The rules that tax certain sales of land contain exclusions from tax for people who use that land as their main home, residence or business premises. However, these exclusions are not meant to apply where the taxpayer has a “regular pattern” of buying and selling land used as a main home, residence or business premises.

A tax policy consultation document, Habitual buying and selling of land, was released today because there are concerns that the current regular pattern restrictions are not working as intended. The document discusses those concerns and proposes possible solutions. Submissions close on 18 October 2019.

A special report providing early information on the new rules applying to “distantly taxable” goods supplied to consumers in New Zealand is now available. This includes the requirement for offshore suppliers, electronic marketplaces and redeliverers to return GST on low-value goods such as books, clothing, cosmetics and shoes.

The new rules come into force on 1 December 2019, and are part of the Taxation (Annual Rates for 2019-20, GST Offshore Supplier Registration, and Remedial Matters) Act. Full coverage of the new Act will be published in the September 2019 edition of the Tax Information Bulletin.