Understanding GST: When is a Subdivision Project Considered a Taxable Activity?

• Subdivision projects can be considered taxable activities for GST purposes
• A subdivision project is considered taxable when it is carried on continuously or regularly and involves making supplies to another person for consideration
• The determination of whether a subdivision project is continuous or regular is based on the number of lots created and sold, as well as the level of activity involved
• The scale of the subdivision and level of development work also play a role in determining if a subdivision project is a taxable activity
• Each case must be considered individually to determine if a subdivision project is a taxable activity
• Key terms include defining subdivision as dividing land into two or more parts or changing existing boundaries
• The policy statement “GST and subdivisions
• Court of Appeal decision in the Newman case” outlines the Commissioner of Inland Revenue’s position on this matter.

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.

---

---