Understanding the Zero-Rating Rules for Supplies of Standing Timber and Crops

• This section of the TIB provides answers to common questions asked by people
• QB 24/5 addresses whether supplies of standing timber and unsevered crops consist of land for zero-rating rules
• Supplies that wholly or partly consist of land must be zero-rated for GST purposes
• Standing timber and unsevered crops do not consist of land in certain circumstances, such as annual crops or crops that do not benefit from further growth
• Supplies of standing timber and unsevered crops do consist of land when the purchaser will benefit from further growth
• Key terms include fructus industriales, fructus naturales, and profit à prendre
• This QWBA follows on from a previous one, QB 20/04

Source: taxtechnical.ird.govt.nz

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.