This question we’ve been asked explains when a person registered for GST on a payments basis can claim an input tax deduction for goods purchased on deferred payment terms. If a person is registered for GST on a payments basis, when can they claim an input tax deduction for goods purchased on deferred payment terms? Generally, a person who is registered for GST on a payments basis can claim input tax deductions only when and to theextent that payment has been made. This includes goods purchased under a standard sales agreement or goods purchasedon a ‘buy now, pay later’ basis. However..
Source: taxtechnical.ird.govt.nz
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