GST- SECOND HAND GOODS 

 

 

A GST registered person who purchases secondhand goods in the course of a taxable activity may be able to claim a secondhand goods credit.   A credit can be claimed only if:

 
the goods are purchased for the principal purpose of making taxable supplies
the goods are in New Zealand
the sale is a non-taxable supply (e.g. a supply made by an unregistered person or an exempt supply) by way of sale, and
payment has been made during  the relevant taxable period

The secondhand goods credit is not available if the purchaser or another GST registered person has previously claimed an imput tax credit for customs levied on the importation of goods.
 
The secondhand goods credit is one-ninth of the money consideration of the supply.

 

 

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