This draft interpretation statement provides guidance on whether a non-resident is eligible to register under s 54B Goods and Services Tax Act 1985. Section 54B allows non-resident businesses that do not make supplies to end consumers in New Zealand to recover GST input tax on goods and services acquired in New Zealand. Since s 54B was introduced, there have been legislative changes that treat certain supplies by non-residents as being made in New Zealand. These changes include the supply of remote services and low value goods. This means a greater number of non-residents must register under the standard registration provision and fewer non-residents are eligible to register under s 54B. There are a number of requirements that must be met and commentators have indicated that these have not been well understood. The item steps through the requirements and provides examples of their application.
Source: govt.nz
