Guidance on GST Treatment of Landlords Supplying Properties for Transitional Housing Program

• The Commissioner has released three public rulings on the GST treatment of supplies of properties by landlords to organisations for use in the Transitional Housing Programme
• The Operational Position gives guidance on how the Commissioner will apply the technical view set out in the commentary to the Rulings
• Landlords who have taken incorrect tax positions in previous GST periods should not expect assessments to be corrected to reverse input tax deductions
• Landlords should consider how the GST legislation applies to their individual circumstances and contact Inland Revenue or their tax advisor if they may have taken incorrect tax positions
• The Rulings concern the GST treatment of supplies made by landlords to organisations who have entered a Transitional Housing Services Agreement with HUD
• The commentary to the Rulings discusses matters relevant to determining whether the supply by landlords will be exempt or taxable
• Possible incorrect tax positions include landlords deducting input tax for acquisition or development costs for buildings that are dwellings
• The Commissioner expects landlords to comply with the Commissioner’s view of the law as set out in the commentary

Source: taxtechnical.ird.govt.nz

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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