New Zealand: GST Exemption for the Supply of Portable Units on Residential Accommodation
The GST exemption for the supply of portable units of housing was clarified in Technical Decision Summary No. 22/13, which was published by the New Zealand Inland Revenue. A taxpayer asked for a reimbursement of the GST they had paid for the one-time delivery and installation of movable housing units, which were rented out on a weekly basis.
The key questions in this argument were whether renting the movable units qualified as a single supply or a series of deliveries, and whether or not there was an exemption to the supply of housing.
The Tax Counsel Office came to the following conclusion:
- The supply of portable units under the hire agreement is made up of several separate supplies. These supplies include a series of subsequent rentals of the portable units, which are considered to have occurred under section 9(3)(a), as well as a separate delivery and installation of the portable units.
- The successive deliveries of portable units are not exempt from Section 14(1)(c) definition of “accommodation in a residence”. As a result, the taxpayer must pay GST on the supplies.
Source: taxtechnical.ird.govt.nz
