How do the compulsory zero-rating of land rules apply to transactions involving commercial leases?

Section 11(8D) of the Goods and Services Tax Act 1985 contains the compulsory zero-rating of land rules for commercial leases.  This question we’ve been asked explains how s 11(8D) operates.  It covers various factual situations, including:

• the exclusion for rents and lump sum payments of 25% or less of the term consideration;
• stand-alone lease assignments;
• lease assignments in the context of business asset sales;
• lease procurement services in the context of business asset sales;
• lease procurement services where an existing lease is currently continuing on an implied term; and
• lease procurement services where an existing lease is to be cancelled.

Source: govt.nz

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