New Zealand Tax Agency Issues Technical Decision Clarifying GST Treatment of Accommodation Supplies in Buildings

The New Zealand Inland Revenue Sept. 4 issued Technical Decision Summary No. 25/22, clarifying the GST treatment of accommodation supplies in newly constructed buildings. The taxpayer, a GST-registered entity, planned to construct a new building, which would be used to provide residential accommodations and associated services, including over 100 fully furnished and self-contained rooms. The taxpayer sought clarification on whether the building qualified as a commercial dwelling, resulting in the supply of accommodations in the building not being an exempt supply under the GST Act, and whether it was entitled to input tax deductions for all GST charged regarding the ...