Global Daily Tax News, NZ Clarifies VAT Recovery Rules For Inputs Acquired Before Registration, (Jun 10, 2026)

New Zealand's Inland Revenue has issued a Commissioner's Statement setting out the Commissioner's position and operational approach on the treatment of goods and services valued at NZD10,000 or less (excluding GST) that were acquired before GST registration and are used to make taxable supplies, on or following GST registration.

The Statement underscores the current Commissioner's position and operational approach – that a registered person is not permitted to claim input tax deductions for goods or services acquired before registration where the GST-exclusive value of those goods or services is NZD10,000 or less.

The Statement says: "While Section 21B allows registered persons to make an adjustment for pre-registration acquired goods and services, the threshold in Section 21(2)(b) does not allow any adjustments to be made if the goods or services are valued at NZD10,000 or less (excluding GST)."

The Commissioner's Statement also sets out how this position fits within the wider GST apportionment and adjustment rules in subsection 20(3), 20(3CB)–(3CH) (applicable to post-registration low value acquisitions) and 21