In February 2023 Inland Revenue issued public rulings BR Pub 23/01-03 and operational position OP 23/01 relating to the GST treatment of directors and board members. One of the findings from that analysis was that people who were “professional directors” (meaning a person whose only activity is to hold directorships – or board memberships) were not able to register for GST. This assumed these persons were operating in a natural person capacity in those roles. Subsequent to publication advisors and industry groups asked Inland Revenue about the position of directors and board members (with a focus on professional directors and board members) who provide their services through a personal services company (often a one-person company). This situation was not specifically addressed in the original rulings and operational position.This QWBA addresses the GST treatment of directors and board members operating through a personal services company and concludes that generally such personal services companies are able to be registered for GST.
Source: taxtechnical.ird.govt.nz
Latest Posts in "New Zealand"
- New Zealand Mandates E-Invoicing for Public Agencies by 2026 to Enhance Efficiency and Transparency
- The Future of e-Invoicing in New Zealand: Peppol, PINT A-NZ and the 2026 Electronic Invoicing Mandate
- New Zealand Clarifies GST Treatment for Accommodation in Newly Constructed Commercial Dwellings
- New Zealand Inland Revenue Clarifies GST Liability and Penalties on Property Disposal for Partnerships
- GST Ruling: Commercial Dwelling Status and Input Tax Deductions for Accommodation Supply
