An tax policy officials’ issues, The GST treatment of immigration and other services, seeks feedback on two problems with the application of GST zero-rating rules for services supplied to non-residents who are off-shore.
The problems primarily affect the immigration industry, but the suggested solutions may have broader implications.
The first problem concerns the difficulty in knowing the location of the non-resident at the time services are supplied.
The second problem concerns the interaction between the zero-rating rules and the income tax residence rules.
Possible ways to resolve the problems are outlined in the issues paper.
Submissions close on 5 July 2013.