GST Ruling: Commercial Dwelling Status and Input Tax Deductions for Accommodation Supply

• The document is a summary of a private ruling on GST treatment for accommodation supply.
• The Applicant is registered for GST and plans to build a new residential accommodation building.
• The building will have over 100 fully furnished, self-contained rooms with shared facilities.
• Residents will pay a single fee covering rent and utilities, with staff available for various services.
• Most residents are expected to stay for short to medium terms, with some staying longer.
• The residence agreement is similar to a boarding house tenancy under the Residential Tenancies Act 1986.
• Main issues include whether the building is a commercial dwelling and if the Applicant can claim input tax deductions.
• The Tax Counsel Office decided the building is a commercial dwelling, so the supply is not exempt.

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.

---

---