TourWriter Inbound Network

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TourWriter Inbound Network

• Goods and Services Tax (GST) Update

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Agenda

• Background
• Zero-rating of facilitation fees / itinerary
  planning fees history
• Recent correspondence / communication with Inland
  Revenue
• Inland Revenue activity
• Questions

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Overview of the GST technical position
Travel Agent
Supplies
Tourist
Wholesaler
Overseas
Supplies
NZ
Inbound Tour Operator
Supply
Supply
Supply
Accommodation
Tourist Attractions
Car Hire
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History
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Recent correspondence

• Correspondence with the Minister of Tourism
• Correspondence with Inland Revenue National
  Office
• Meetings with senior officials from Inland
  Revenue
• Increased lobbying activity

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Recent IRD publications

• Draft Interpretation Statement (IS0097) issued by
  Inland Revenue regarding apportionment (1 August
  2007)
• IS0097 limits the circumstances when a supply can
  be apportioned
• IS0097 should not apply to separate supplies
• Submissions made by Ernst Young

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Inland Revenue activity

• Test case currently being considered by the
  Adjudication Unit
• Audits commencing on an increased number of ITOs
• Co-ordination by Inland Revenue Takapuna
• Audit activity initially limited to recent GST
  returns
• Inland Revenue strategy?
• Audit preparation

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GST contacts

• Paul Smith
• Executive Director Indirect Taxes
• DDI 09 300 8210
• Email paul.smith_at_nz.ey.com
• Geng Zheng
• Manager Indirect Taxes
• DDI 0274 899 769
• Email geng.zheng_at_nz.ey.com

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Thank you

• Disclaimer
• This communication provides general information,
  current as at the time of production. The
  information contained in this communication does
  not constitute advice and should not be relied on
  as such. Professional advice should be sought
  prior to actions being taken on any of the
  information. Ernst Young disclaims all
  responsibility and liability (including, without
  limitation, for any direct or indirect or
  consequential costs, loss or damage or loss of
  profits) arising from anything done or omitted to
  be done by any party in reliance, whether wholly
  or partially, on any of the information. Any
  party that relies on the information does so at
  its own risk.