Quick Summary
Yes, beyond the standard apportionment method, the Inland Revenue Department (IRD) in New Zealand allows for alternative methods for GST adjustments. These can be specific agreements with the IRD or simplified methods for certain asset types, particularly relevant for mixed-use goods and services.
Details
Exploring Alternative GST Adjustment Approaches
While the primary methods for GST adjustments in New Zealand involve either the principal purpose rule (for items under $10,000) or detailed apportionment, the Inland Revenue Department (IRD) acknowledges that these may not always be practical or suitable for every business scenario.
- Approved Methods: The IRD may approve specific alternative methods for GST adjustments if they accurately reflect the extent of taxable use and are consistently applied.
- Seeking IRD Approval: Businesses can sometimes apply to the IRD for approval to use a different method that better suits their specific operations or asset types, ensuring it still results in a fair and reasonable apportionment of GST.
- Examples of Alternatives: While the guide doesn't detail specific examples, these could include agreed-upon fixed percentages for certain industries, or simplified approaches for particular classes of mixed-use assets. It's crucial to consult directly with the IRD or refer to their specific guidance on 'alternative methods' to ensure compliance.
Source: GST guide (IR375)