The tax department of New Zealand has reportedly proposed new amendments for the Goods and Services tax (GST)-related policy, concerning crypto, and is open for general feedback.
Specifically, on February 24th, New Zealand’s Inland Revenue Department (IRD) has issued a new document, outlining potential changes, which would help enhance and simplify tax invoice requirements, along with freeing digital coins from the effective range of numerous GST provisions.
The document revealed that the crypto assets market in New Zealand is a rapidly developing one, and is positive that the majority of stakeholders will have a pro-attitude towards the amendments, or come up with their own idea of wider tax and regulatory reforms.
The current tax system of New Zealand purportedly looks to make sure that tax-related regulations will not form any obstacles that challenge the growth of crypto locally.
Moreover, the paper also proposed exemption for crypto, from both the GST laws and the financial arrangements rules, while other services dealing with crypto – nominally exchange services and mining – will remain compliant to the current GST and income tax rules. A tax will be applied on unspecified gains and losses.
“The proposed GST changes would only apply to supplies of crypto-assets. Other services related to crypto-assets, that are not in themselves supplies of crypto-assets such as mining, providing crypto-asset exchange services or providing advice, general business services or computer services will continue to be subject to the existing GST rules.” Crypto-enabled supplies of goods and services will still be under the effective range of the GST.