- Deadline to opt out of GST on certain assets is 1 April 2025.
- The transitional rule allows owners to opt out of GST on assets acquired before 1 April 2023.
- The asset must not have been acquired for the principal purpose of making taxable supplies.
- The asset was never used for the principal purpose of making taxable supplies.
- GST input tax credits have previously been claimed, or the asset was acquired as a zero-rated supply.
- Examples of assets that should be reviewed include home offices, holiday homes, and buildings used by businesses making a combination of taxable and exempt supplies.
- To use the transitional rule, an election must be made before 1 April 2025 by notifying the Commissioner of Inland Revenue.
- If an election is not made, the sale of any asset with business use that had GST claimed on purchase will be subject to GST on sale.
- The transitional rule does not include any GST claimed on operating costs.
- Taxpayers should confirm that they can apply the transitional rule and undertake the necessary calculations to determine the amounts owed to Inland Revenue.
- Inland Revenue is expected to be open to providing an installment arrangement for taxpayers who need it.
Source: taxathand.com
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.
