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IS 22/02
Issued
14 Apr 2022

GST and finance leases

This interpretation statement explains how to classify finance leases for the purposes of the time of supply and value of supply rules. It also explains how to account for GST on finance leases when applying any special time and value of supply rules.

Council Directive 2006/112/EC of 28 November 2006 on the Common System of Value Added Tax, art 14(2)(b)
Credit Contracts Act 1981 (repealed), s 3 (“credit contract”)
Credit Contracts and Consumer Finance Act 2003, ss 5 (“cash price”), 6 (“credit”), 7 (“credit contract”)
Goods and Services Tax Act 1985, ss 2(1) (“hire purchase agreement”), 3(1)(f), 9, 10(2), (5), (5A) (“cash price”, “credit contract”), (5B) and (5C), 14(1)(a), 19E to 19Q, 24, 25(1)(aa) and (b), 60
Hire Purchase Act 1971(repealed)
Income Tax Act 2007, s YA 1 (“hire purchase agreement”)
Value Added Tax Act 1994 (UK), cl 1 of sch 4

Adaras Developments Ltd v Marcona Corp [1975] 1 NZLR 324 (HC)
Alexander v Tse [1988] 1 NZLR 318 (CA)
Aubit Industries Ltd (in rec and in liq) v Cable Price Corp Ltd (1994) 5 NZBLC 103,395 (CA)
Case C-164/16 HMRC v Mercedes-Benz Financial Services UK Ltd ECLI:EU:C:2017:734 (CJEU)
Collector of Customs v Chemark Services Pty Ltd (1993) 114 ALR 531 (FCA)
Customs & Excise Commissioners v General Motors Acceptance Corp (UK) plc [2004] EWHC 192 (Ch)
General Motors Acceptance Corp (UK) plc v Customs and Excise Commissioners (2003) VT 17990
Helby v Matthews [1895] AC 471 (HL)
Jane v Ben Hall Properties Ltd [1979] 2 NZLR 68 (CA)
Lee v Butler [1893] 2 QB 318 (CA)
Marac Finance Ltd v Virtue [1981] 1 NZLR 586 (CA)
Marac Life Assurance Ltd v CIR (1986) 8 NZTC 5,086 (CA)
Murray v Scott [1976] 1 NZLR 643 (SC)
National Westminster Finance NZ Ltd v South Pacific Rent-a-Car Ltd [1985] 1 NZLR 646 (HC)
National Westminster Finance NZ Ltd v South Pacific Rent-a-Car Ltd [1985] 1 NZLR 655 (CA)
Provident Life Assurance Co Ltd v Official Assignee [1963] NZLR 961 (CA)
Rodney Crawford Hogarth t/a Hogarth Associates v Customs and Excise Commissioners (1994) VT 13259
Securitibank Ltd (No 2), Re [1978] 2 NZLR 136 (CA)
Woodroffe v Box (1954) 92 CLR 245 (HCA)