Commissioner’s View on GST Taxable Activity Definition and Legal Interpretation

• This interpretation statement explains the Commissioner’s view on what constitutes a taxable activity for GST purposes and replaces previous guidance on asset disposal and hobby activities
• An activity must be carried on by a person and cannot be entirely passive, involving a combination of tasks or course of conduct that the person chooses to undertake
• Courts have defined activity broadly as an occupation or pursuit, meaning a series of acts or course of conduct rather than just sequential steps
• The overall activity as a whole must meet the GST Act definition, not its individual component parts, and should be viewed realistically as it is carried on
• A single act cannot be artificially divided into component parts when assessing whether it meets the taxable activity definition

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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