New Zealand’s Commissioner of Inland Revenue issued an Interpretation Statement that broadens the subject of taxable activity under the GST regime. The concept of interpretation is general and broad, capturing various types of activities under the GST regime, seen as cable.
The Statement provides clear insights into what is meant by taxable activity under the GST regime, from the perspective of Inland Revenue. It is emphasized that, in most cases, following the general overviews provides a straightforward understanding of taxable activity.
However, it has also been noted that there are many particular scenarios, where the accumulated conditions could confuse a person pursuing business activity, and whether that activity is treated as a taxable under the GST regime.
To further strengthen the understanding of the term taxable activity, it has reviewed the terms such as “activity”, “carried on”, and “continuous or regular activity”.