1. This item provides guidance on the meaning of the term “resident” for GST purposes.
The GST definition of resident differs from the income tax definition:
* By extending it to include a person who has a “fixed or permanent” place in New
Zealand, where that place is related to a taxable activity carried on by the person
in New Zealand (discussed from [12]).
* For unincorporated bodies, it provides for a residence test based on its centre of
administrative management (discussed from [36].
* For individuals, the definition differs for the commencement and end dates of
residency when applying the day-count test (discussed from [39]).
2. The importance of determining whether a person is a New Zealand resident for GST
purposes is that it may affect whether GST needs to be charged on any supplies made
to that person. It is also relevant to whether the person is required to charge and
account for GST on supplies they make in New Zealand and whether a person can or is
required to register for GST in New Zealand.
3. While many people are familiar with the income tax rules for determining residency
and know whether they are resident under the Income Tax Act 2007 (ITA 2007), they
may be unsure whether the connection or presence they have in New Zealand is
sufficient for them to be treated as a resident for GST purposes.
4. The Commissioner discussed the law relating to determining whether a person is
nonresident for GST purposes in “IS 18/07: Goods and services tax – zero-rating of services
related to land”, Tax Information Bulletin Vol 31, No 1 (February 2019): 17. This
statement is consistent with the analysis in IS 18/07.
5. This statement updates and replaces “GST: Scope of the term ‘resident’”, Tax
Information Bulletin Vol 1, No 9 (March 1990) and “GST: The definition of resident”, Tax
Information Bulletin Vol 5, No 12 (May 1994).
6. For further information on residence for income tax purposes, see “IS 16/03: Tax
residence”, Tax Information Bulletin Vol 28, No 10 (October 2016): 2.
Source: govt.nz
