Unconditional Gifts and GST

Unconditional Gifts and GST

Publication IS 20/09 GST – unconditional gifts (ird.govt.nz) was published on 23 December. It clarifies that a payment made to a GST registered non-profit body as an unconditional gift is not consideration for a supply and is not subject to GST. Also, unconditional gifts are not included for the purposes of determining whether the entity has reached the threshold requiring it to register for GST.

Non-profit bodies therefore need to know when they are receiving unconditional gifts.

This interpretation statement also looks at what voluntarily means, issues of specific purpose, identifiable direct value benefit and so on.

Content via Tax-e-mail, Issue 2101, Small Business Institute Ltd

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