Summary of effect:
Section 15(3) of the Goods and Services Tax Act 1985 allows a person to apply to the Commissioner to have a one-month taxable period for GST. Under s 15D(2) of the GST Act, the change in the taxable period takes effect at the end of the taxable period in which the person applies. The effective date of the change has been modified to the start of the taxable period using s 6I of the TAA.
Provisions affected:
Section 15D(2) of the Goods and Services Tax Act 1985.
Application of variation:
This variation applies to a person who wishes to change from a six-month taxable period to a one-month taxable period for GST. A person is permitted to do so under s 15(3) of the GST Act, but the change will take effect from the end of the taxable period in which they apply. This variation allows that change to be effective from the start of the taxable period in which a person applies. The variation recognizes that the impact of COVID-19 means that some taxpayers may now wish to file on a one-monthly basis to provide earlier access to any GST refunds. It allows the change of taxable period to take effect much sooner than would otherwise be the case.
The variation may apply to a person with a standard balance date who applies on or after 1 October 2021 and would otherwise have to wait until 1 April 2022 for a change of taxable period to take effect. The variation may also apply to a person with a nonstandard balance date who applies in a taxable period that commenced before 1 October 2021 and is still in progress.
Issued: 29 September 2021
EFFECTIVE: 1 October 2021 to 31 March 2022
Source: IRD
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