2007 media releases
Inland Revenue issues GST statement on unconditional property sale agreements
5 July 2007
The Commissioner of Inland Revenue has decided that an unconditional property sale and purchase agreement is not an invoice and does not trigger GST requirements.
The interpretation statement overturns an earlier view that unconditional property sale and purchase agreements triggered GST requirements, while conditional agreements did not. In future, neither unconditional nor conditional agreements will be treated as invoices for GST purposes by Inland Revenue.
The Commissioner noted, however, that a deposit is often paid to a vendor when an unconditional agreement is signed. This action would trigger GST requirements, even though the unconditional agreement was not an invoice.
The view that a property sale and purchase agreement is not an invoice, and does not trigger GST payments, also applies in general to other types of contracts.
The interpretation statement is entitled"Is an Agreement for the Sale and Purchase of Property aninvoice for GST Purposes?". It replaces Part (a) of the Commissioner's previous public item "GST-Time of Supply of Real Estate" published in Public Information Bulletin 173 (April 1988). The full statement can be found on the Inland Revenue website at www.ird.govt.nz
The interpretation applies to agreements entered into on or after 1 July 2007.
Ends
For further information contact:
Adrienne Perry
Senior Media Advisor
Inland Revenue
(04) 890 1698
Other media releases this year
- Draft guidelines released for new R&D tax credit
- Man extradited from Australia to face tax charges
- Working for Families Tax Credits to be made early
- Inland Revenue alerts tax professionals
- 'Money man' behind major tax scam jailed
- Third conviction in Rawleigh tax evasion case
- Samoan chief receives two years' home detention
- Early working for families tax credits scheduled
- Cash businesses are in the spotlight
- Inland Revenue transfers first KiwiSaver funds to scheme providers
- Late filers advised to contact Inland Revenue
- Wellington Inland Revenue staff to centralise
- Christchurch businessman fined $20,000 on tax charges
- Hamilton JP jailed for two years for $1.1 million tax evasion
- Businessman pleads guilty to $1.3 million in tax charges
- Jail term extended for Tauranga tax evader
- Inland Revenue offers Language Line
- Inland Revenue wins prestigious IT award
- Inland Revenue simplifies tax with Business Is Booming
- Inland Revenue reassures people affected by weather
- Customers urged to contact Inland Revenue
- KiwiSaver information readily available from Inland Revenue
- Scott Anderson bankrupted for unpaid debt of $13 million
- Inland Revenue welcomes 'Trinity' court ruling
- Christchurch tourism operators' concern leads to community service for tax evader
- Inland Revenue welcomes prison sentence for GST fraud
- Levin man sent to jail over $45,000 in GST fraud
- Businessman who "undercut the opposition" jailed for tax fraud
- Accountant's low profits prompted tax audit
- "Not a lot" of effort to pay taxes results in jail term for tax evasion
- Tiler in court for keeping staff tax payments
- Northland flood victims should call if having problems with tax payments
- Tax agent fined $10,000 for refusing to cooperate with Inland Revenue
- Early Working for Families Tax Credits payments
- Nelson man in court for not passing on employees' tax payments
- Tax season underway
- Businesses foolish to try to suppress details of income
- Dairy owner in court for cheating on taxes over seven years
- Two years' prison for 146 tax offences
- Refusing to cooperate with Inland Revenue lands couple in court
- Prison sentence upholds integrity of tax system, says Inland Revenue
- Early family assistance payments
- Tax payments due on 7 February
Corporate Affairs
Inland Revenue
To make a media query:
Phone 04 890 1698 or email mediaqueries@ird.govt.nz
Please note, the email address is only for enquiries from the news media. It is monitored during normal business hours 8am - 5pm Monday to Friday.
P O Box 2198
Wellington 6140
New Zealand
Date published: 05 Jul 2007
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