New Zealand Inland Revenue Clarifies GST Zero-Rating, Input Tax Deductions, and Penalties in Freight Case

New Zealand Inland Revenue issued a Technical Decision Summary on March 26
Clarified zero-rating of GST, input tax deductions, and shortfall penalties
Taxpayer claimed involvement in freight-forwarding and acting as an agent for overseas customers
Customer and Compliance Services questioned the taxpayer’s input tax deductions and taxable activity
Taxpayer sought clarification on GST zero percent rate and input tax deductions
Tax Counsel Office found taxpayer not entitled to charge GST at zero percent or claim input tax deductions
Taxpayer not carrying on a taxable activity
Taxpayer liable for shortfall penalties due to gross carelessness

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.