- The Commissioner’s position is that low-value goods and services acquired before GST registration and later used for taxable supplies do not qualify for input tax deductions if their GST-exclusive value is $10,000 or less.
- Although s 21B covers pre-registration acquisitions, the s 21(2)(b) threshold means no adjustment can be made for items valued at $10,000 or less (excluding GST).
- This statement confirms the approach is unchanged from existing Inland Revenue practice and overrides contrary published views.
- It also explains how these rules fit within the wider GST apportionment and adjustment framework in ss 20 and 21–21H.
- Inland Revenue has also noted a separate officials’ issues paper considering possible law changes in this area.
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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