- New Zealand Inland Revenue issued Fact Sheet No. QB 24/04 FS 1 clarifying GST treatment for subdivision projects
- Subdivision projects must involve regular or continuous sale of multiple lots to be taxable
- Projects with higher number of sales are more likely to be deemed continuous or regular
- Factors like scale of subdivision, development intensity, time, effort, financial investment, and repetition are relevant in determining continuity
- Commerciality, activities prior to intent to sell, or activities related to unsold land are not relevant
- GST-registered entities must consider specific information regarding taxable activities
- Income tax may apply to all land sales, regardless of taxable activity being carried out.
Source: globalvatcompliance.com
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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