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Inland Revenue

Tax Policy

PUBLISHED 5 June 2013

Feedback sought on possible changes to GST zero-rating of services

A tax policy officials’ issues paper released today looks at two problems with the application of GST zero-rating rules relating to services supplied to non-residents who are off-shore. The problems primarily affect the immigration industry, but the suggested solutions may have broader implications. The first problem concerns the difficulty in knowing the location of the non-resident at the time services are supplied. The second problem concerns the interaction between the zero-rating rules and the income tax residence rules. Possible ways to resolve the problems are outlined in the issues paper The GST treatment of immigration and other services. Submissions close on 5 July 2013.