Inland Revenue has confirmed GST second hand goods credits cannot be claimed on the purchase of fishing quota, coastal permits and certificates of compliance.
Two binding rulings (BR 15/01 and 15/02) just released by the tax department conclude fishing quota, coastal permits and certificates of compliance are not “goods” under the GST Act and therefore a “second hand goods” input tax deduction cannot be claimed when a non-GST registered vendor transfers these items to a GST registered purchaser.
Fishing quota are not “goods” because they are choses in action which are expressly excluded from the definition of “goods” in the GST Act. Coastal permits and certificates of compliance are granted under the Resource Management Act which provides they are not personal or real property and, therefore, they too do not fall within the definition on “goods” in the GST Act.
This will come as no surprise to most people because these new rulings reach the same conclusion previously published by the Department in earlier and now expired rulings.
http://iainblakeley.com/wp-content/uploads/2017/01/name-1-300x72.png00Iain Blakeleyhttp://iainblakeley.com/wp-content/uploads/2017/01/name-1-300x72.pngIain Blakeley2015-02-11 10:09:402015-02-11 10:09:40Fishing quota and coastal permits
Barrister, Director and Consultant specialising in tax, family enterprise governance and succession, helping start ups and entrepreneurial enterprises grow safely and international expert on value added tax policy and implementation.