New Zealand moves to reduce GST VAT unfair gains and GST grouping rules
- May 8, 2013 | Richard Asquith
The New Zealand tax office to change the rules on Goods & Services Tax (GST) refunds to prevent companies benefiting from incorrect collections from their consumers.
This would mean companies could only recover overpaid GST due back if it can prove that the GST had been forwarded to their customers. This would place a high administrative burden on the companies.
In a separate proposal, the New Zealand GST authorities are to no longer allow non-New Zealand based companies to joining local GST Groups. GST Groups help reduce tax compliance and payments between related companies.