Now Accepting Submissions:
GST on Raffles
Since 2013 the IRD have been working on clarifying the GST rules for running a raffle, lottery or sweepstake.
The IRD have prepared a draft paper which they are now seeking submissions from interested parties which is available here.
This includes a prize competition which is a scheme or competition that people pay to enter to win a cash prize where the result is determined by the skill of the participants or partly by the skill of the participants and partly by chance (such as a fishing competition). The draft paper includes prize competitions.
Essentially the key message in the paper is that where a person (or group) is registered for GST and is running a lottery, raffle, sweepstake or prize competition, GST needs to be accounted for on any ticket sales less any cash prizes paid or payable. The paper contains some examples that show how the rules operate in practice.
The paper has now been sent out for external consultation. FINZ will be preparing a response and is thus seeking input from members who can send any responses back to FINZ (firstname.lastname@example.org) or direct to the IRD by emailing email@example.com.
Consultation closes on 24 October 2014. As such, the FINZ office requests your feedback by 5:00 p.m. Friday, 17 October.
Once consultation has closed, the IRD will consider the submissions they have received and publish their paper in a final form. The item will be available at http://www.ird.govt.nz/technical-tax/questions/
Basically there is not a lot in it except that it clarifies an area where often GST is excluded and/or overlooked.
I look forward to any feedback to assist FINZ in their formal response.
With best wishes,
Chief Executive Officer
Phone +64 (0)4 499 6223