Tax Status of Serviced Apartment Accommodation with Mandatory Hospitality Services in Retirement Villages

• The ruling concerns whether providing accommodation in serviced apartments in a retirement village, along with mandatory hospitality services, is a taxable supply of accommodation in a commercial dwelling.
• Residents must enter into an occupation right agreement and pay monthly for care services included in a hospitality package.
• The hospitality package includes meals, transport, emergency monitoring, cleaning, health checks, activities, and access to vehicles and equipment.
• The Tax Counsel Office decided that this arrangement is a taxable supply of accommodation in a commercial dwelling under the Goods and Services Tax Act 1985.

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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