Goods and Services Tax Act 1985

77 New Zealand or foreign currency

(1)

All amounts of money must, for the purposes of this Act, be expressed in terms of New Zealand currency, and in any case where and to the extent that any such amount is consideration in money for a supply, that amount must be expressed in terms of New Zealand currency as at the time of that supply.

(2)

Despite subsection (1), a non-resident supplier of distantly taxable goods to which section 8(3)(ab) applies or of remote services to which section 8(3)(c) applies may choose to express the amount of consideration in money for their supplies in a foreign currency as at the time of supply.

(3)

A non-resident supplier which makes an election under subsection (2) must, in a return, choose to convert foreign currency amounts into New Zealand currency amounts on—

(aa)

the date of the supply; or

(a)

the last day of the relevant taxable period; or

(b)

the earlier of—

(i)

the date the supplier files their return for the relevant period:

(ii)

the due date for filing their return for the relevant period; or

(c)

another date agreed between the supplier and the Commissioner.

(4)

A non-resident supplier may not revoke an election under subsection (2) or (3) until at least 24 months after making the election, unless the Commissioner agrees otherwise.

(5)

A supplier of distantly taxable goods who is required to determine under section 10B the value of an item of goods in a supply may, for that purpose, convert foreign currency amounts into New Zealand currency amounts using—

(a)

the spot exchange rate for the foreign currency applying at the time of the supply; or

(b)

a currency conversion method, and a time for which the method is applied for the supply, that are approved by the Commissioner for the purpose.

Section 77: replaced, on 1 October 2016, by section 74 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 77(2): amended, on 1 December 2019, by section 41(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 77(3)(aa): inserted (with effect on 1 October 2016), on 23 March 2020, by section 253 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).

Section 77(5): inserted, on 1 December 2019, by section 41(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).