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Inland Revenue

Tax Policy

PUBLISHED 23 August 2011

Views sought on GST business-to-business proposals

A Government discussion document released today by Revenue Minister Peter Dunne seeks feedback on proposed changes to ensure that the GST rules do not act as an impediment to transactions between non-resident and New Zealand businesses. For more information see the discussion document and media statement.

Hon Peter Dunne
Minister of Revenue

Feedback sought on GST cross-border neutrality proposals

A discussion document released today for public consultation seeks feedback on options for addressing issues relating to goods and services tax (GST) as it applies to businesses trading with each other across borders.

Revenue Minister Peter Dunne welcomed the discussion document.

“GST is a tax on consumption and should be a neutral tax for businesses, whether they are resident or non-resident. By addressing the current limitations on non-resident businesses claiming back New Zealand GST, we can help level the playing field for local businesses as they compete internationally,” said Mr Dunne.

Mr Dunne says that he is aware of cases where New Zealand’s GST represents a real cost to non-resident businesses significantly compromising New Zealand companies’ competitiveness in global markets.

“For example, the aviation training industry provides training services to overseas airlines. As the GST is a business-to-business cost, the outcome under the proposals in the discussion document would allow the overseas entities to register and claim back the GST,” Mr Dunne said.

The discussion document looks at changes that could be made to the GST system that would move towards non-resident businesses being treated in a similar way to their New Zealand counterparts.

Submissions close on 7 October 2011.

The discussion document is available on Inland Revenue’s tax policy website


Hayden Cox
Ministerial Advisor to Hon Peter Dunne
Minister of Revenue | Associate Minister of Health | MP for Ohariu | UnitedFuture Leader
Tel: DDI 04 8176991 | Mobile: 021 917339