New Zealand to improve GST (VAT) recoverability for non-resident traders

21 October 2011

New proposed guidance has been issued on the rules for recovering input Goods and Sales Tax (GST) for foreign traders providing taxable supplies in New Zealand.

Check the New Zealand VAT rate here

The discussion document provides for alternative ways for non-resident traders to eliminate the amount of irrecoverable VAT.  The aim is to attract more foreign investment, and help open up consumer choice.  The alternatives include: zero GST rating on certain supplies; eliminating the need for foreign traders to register for GST, which would include a new GST recovery regime – similar to Europe’s VAT recovery mechanism; and simplifying the current GST registrations procedures.

Please click here if you would like to be put in touch with TMF Group’s New Zealand office to discuss any questions you may have in relation to GST compliance.

 
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