Quick Summary
'Special supplies' for GST purposes in New Zealand refer to categories of goods and services that have unique or complex GST treatments. These can include transactions like the supply of land, financial services, or specific types of second-hand goods, which require particular attention to ensure correct GST application.
Details
Delving into Special Supplies for GST
The term 'special supplies' in the context of New Zealand's GST guide refers to specific types of transactions or goods and services that fall outside the standard GST rules or require particular consideration due to their complexity or nature.
- Nature of Special Supplies: These are typically supplies that have unique legal or commercial characteristics that necessitate tailored GST rules. Examples can include:
- Supplies of Land: Transactions involving land can be complex, with rules varying based on whether the land is developed, sold as part of a taxable activity, or if the buyer is GST-registered.
- Financial Services: While often exempt, certain financial services might have specific GST implications.
- Secondhand Goods: The ability to claim GST on secondhand goods can depend on whether the seller was GST-registered.
- Imported Services and Goods: As discussed, these have specific record-keeping and GST rules.
- Why They're 'Special': The special treatment ensures that GST is applied fairly and accurately to transactions that don't fit the typical 'buy and sell a widget' model. It also addresses situations where there might be a higher risk of misapplication of GST.
- Guidance: Businesses dealing with 'special supplies' should consult the more detailed guidance provided by the Inland Revenue Department (IRD), often found in guides like IR546 ('GST Plus') or specific sections on ird.govt.nz.
Source: GST guide (IR375)