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Transactions that could affect GST-registered businesses

GST changes announced in Budget 2010 affect the time of supply treatment for some GST transactions.

When there is a GST rate change (in this case from 12.5% to 15%) the general time of supply rule applies for most transactions. This means that a supply is considered to take place at the earlier of the time:

  • an invoice is issued, or
  • any payment is received by the supplier.

The period you need to use to account for the GST, depends on the accounting basis you use.

If you use the ... then you can account for GST... and claim GST ...
invoice basis when you receive:
  • an invoice, or
  • any payment for that supply (whichever comes first)
when you receive an invoice.
payments basis when you make or receive any payment during a taxable period when you make or receive any payment during a taxable period
hybrid basis account for GST on your sales (income) using the invoice basis on your expenses (purchases) using the payments basis.

Although the general time of supply rule applies for the majority of transactions, there are some special times of supply rules for some specific transactions.

Find out more about the supply rules for some specific transactions in the table below.

a-e f-k
Accommodation Fringe benefits
Adjustments Full price not known at time of supply
Bad debts written off Gaming machines
Claiming GST input tax credit in a late period Goods retained after cancelling GST registration
Coin and token-operated machines GST on goods imported through NZ Customs
Credit notes Hire purchase agreements
Debit notes Imported services
Door-to-door sales Insurance
Entertainment expenses  
l-p r-z
Lay-by sales Repossessions
Local authority rates Road user charges (RUC)
Lotteries and other games of chance Successive supplies and progress payments
Payments of deposits including to stakeholders Supply (transaction) of greater than $225,000
Periodic payments and hire agreements Supplies to associated persons
Price changes (debit and credit notes)  



Date published: 25 Jun 2010

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