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GST (Goods and services tax) Te tāke hokohoko

What about imported services?

If you receive an imported service, you will not hold a tax invoice for it. Therefore, a tax invoice is not required to claim GST on the imported service. However, you must include the GST (12.5% or 15% from 1 October 2010) in the GST return covering the taxable period in which the imported service is charged or paid.

Imported services - supplies by third parties

If you receive imported services, you are required to maintain sufficient records to establish the correct value on which GST should be charged. The following information is required:

  • the name and address of the supplier
  • the date on which, or the period during which, the supply was received
  • a description of the services supplied
  • the consideration for the supply
  • the time by which payment of the consideration for the supply is due
  • the amount of any salary or wages and interest excluded from the consideration for the supply. Consideration is the total amount, including GST, paid or payable to a supplier for a supply of goods or services. Consideration can be in money or in a non-monetary form. It can take the form of goods or services.

An invoice or other supporting documentation, such as a supply contract or record of payments made, may be used to establish the value on which GST is to be returned on an imported service.

Imported services - supplies between related parties

Imported services supplied between related persons are valued at cost if payment is allowed as a deduction for income tax. In other circumstances, the value of the supply is its open (current) market value. In determining the open (current) market value, we'll accept charges calculated and evaluated in accordance with the income tax transfer pricing guidelines.

Additional information

Tax Information Bulletin Vol 12, No 10 (October 2000).

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