Quick Summary
The Inland Revenue Department (IRD) often provides a glossary or 'Terms we use' section in their New Zealand tax guides, including the GST guide. This explains specific tax terminology, such as 'taxable activity', 'exempt supply', 'taxable supply information', and other legal or accounting phrases relevant to your tax obligations, ensuring clarity for users.
Details
Decoding IRD Terminology
Taxation involves a specific language, and the Inland Revenue Department (IRD) in New Zealand uses precise terms in its guides and communications. Understanding these terms is crucial for accurate compliance.
- Purpose of 'Terms We Use' Sections: Most comprehensive IRD guides, including the GST guide (IR375), include a dedicated section (often titled 'Terms we use' or a glossary) to define key concepts.
- Examples of Key Terms: This section would typically clarify terms like:
- Taxable Activity: The business operations that attract GST.
- Taxable Supply Information: The new requirement for transaction records.
- Supply Correction Information: The method for amending GST errors.
- Exempt Supplies: Goods/services where no GST is charged or claimed.
- Zero-Rated Supplies: Goods/services where GST is 0% but related GST is claimable.
- Accounting Basis: The method for reporting GST (invoice, payments, hybrid).
- Taxable Period: The specific period your GST return covers.
- Importance: Familiarising yourself with these definitions ensures you correctly interpret the IRD's advice and accurately fulfil your tax obligations. Always refer to the latest guide for the most up-to-date definitions.
Source: GST guide (IR375)