GST Implications for NZUs: Zero-Rated Supplies and Deregistration Consequences Explained

• GST applies to supplies of NZUs by registered persons
• NZUs are considered services for GST purposes
• Most NZU supplies are zero-rated under specific sections of the GSTA
• Zero-rated supplies include transfers and surrenders of NZUs, certain Crown services, and similar units related to greenhouse gas emissions
• Zero rating means supplies are subject to GST at 0 percent
• Deregistering from GST while holding NZUs results in a zero-rated supply at deregistration with no GST consequences

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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