GST Ruling: Accommodation Supply in Commercial Dwelling and Input Tax Deductions Eligibility

• The building is classified as a commercial dwelling, so the supply of accommodation is not exempt from GST.
• The Applicant can claim input tax deductions for GST related to the building’s construction and operation.
• The building offers over 100 fully furnished rooms with shared facilities and services.
• Residents will have agreements similar to boarding house tenancies with specific rules and processes.
• The Tax Counsel Office determined the building’s classification based on its similarities to boarding houses.

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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