Quick Summary
Yes, from 1 April 2023, the number and value of GST adjustment periods in New Zealand have changed. Fewer adjustments are now required for land, as well as for goods and services valued at $20,000 or less, aiming to simplify compliance for businesses.
Details
Updated GST Adjustment Period Rules
The landscape of GST adjustments in New Zealand saw significant changes from 1 April 2023, specifically impacting the frequency and thresholds for these adjustments.
- Fewer Adjustments: The primary aim of these changes is to reduce the administrative load for businesses.
- Impact on Land: Adjustments for land transactions now require less frequent review.
- Impact on Goods and Services: For goods and services valued at $20,000 or less, fewer adjustment periods are necessary. This means businesses might not need to review the use of these assets as often as before.
- Rationale: These adjustments are typically made when the percentage of taxable use of an asset changes over time, affecting the amount of GST that can be claimed or must be returned. The new rules simplify this process for certain assets.
Source: GST guide (IR375)