Deemed supplies GST NZ: when the law treats a sale as happening
Deemed, in a tax statute, means the law treats something as a supply even when no customer paid a normal invoice. New Zealand GST deemed supplies sit mainly in GST Act 1985 section 5. They are not an Australian deemed interstate supply, not UAE VAT, and not a Resource Management Act deemed permitted activity.
The deemed definition that matters for a GST return is simple. Parliament writes that an event is treated as a supply of goods or services. You then value it and, if it is a taxable supply, you return output tax. GST Act 1985 section 5(1) says supply includes all forms of supply. Later subsections add the fictions: remaining assets when you cancel GST, some grants, some layby cancellations, and other listed events.
People also search deemed settlor, deemed director NZ, deemed dividend IRD, deemed depreciation NZ, deemed permitted activity RMA, and clause 9.6. Those phrases use the same lawyer word. They are different statutes. Mixing them is how a tradie overpays GST on a council boundary notice, or underpays GST on a van kept after cancelling registration. This page is an overview, not tax advice. Figures are working papers from Inland Revenue, the GST Act 1985, the Customs and Excise Act 2018, the Resource Management Act 1991, and the Companies Act 1993.
The trap in the word deemed
Deemed material meaning, in NZ drafting, is “treat X as Y”. It does not mean you actually sold stock over the counter. GST Act 1985 section 5(3): when a person ceases to be a registered person, any goods and services then forming part of the assets of a taxable activity are deemed to be supplied immediately before that person ceases to be registered. Inland Revenue’s final GST return page: return GST on assets you keep, using current open market value and (open market value x 3) ÷ 23 for assets bought on or after 1 October 1986. Category: Advanced GST Rules.
What is the deemed definition in GST, and what is only a lookalike?
What is a GST deemed supply: GST Act 1985 section 5 lists events that are treated as supplies. The everyday one is cancelling GST while you still hold business assets. Inland Revenue, your final GST return: complete debit adjustments if you are keeping any assets the business owns for private use or to use in another business. Use current open market value, as if you were selling it today. Assets bought before 1 October 1986 use the lower of cost and open market value. Assets bought on or after 1 October 1986: (open market value x 3) ÷ 23. Return that GST no matter which accounting basis you use. Worked 15% and 3÷23 maths: GST calculator. The how-to sits on cancelling GST registration.
IR375: if you elect to treat land, a dwelling, or a vehicle as a non taxable supply because the principal purpose is not making taxable supplies, you do not pay GST on a later sale or on the deemed supply when you cancel GST registration. Detail: electing non taxable treatment. Private drawings of stock during the year are usually change in use adjustments, not the exit deemed supply: GST on private use, samples, and giveaways.
| Search phrase | Owner of the rule | Is it a GST deemed supply? |
|---|---|---|
| Assets kept when you cancel GST | GST Act 1985 s 5(3), Inland Revenue final GST return, IR546 | Yes. Deemed supply of remaining assets. |
| Deemed fringe benefit | GST Act 1985 s 21I, Inland Revenue GST for FBT returns | Yes, treated as a GST supply. GST is paid in the FBT return, not the GST return. |
| Deemed export supplies / deemed export supplies under GST | GST Act 1985 s 11(1)(b) and (e), Customs and Excise Act 2018, Inland Revenue zero-rated supplies | Zero-rating of goods deemed entered for export. Not a cancellation deemed sale. |
| Deemed dividend IRD | Income Tax Act 2007 subpart CD, IS 21/05 | No. Income tax on a transfer of company value caused by shareholding. |
| Deemed settlor | Income Tax Act 2007 ss HC 27 and HC 28, IS 24/01 | No. Who is treated as a settlor of a trust for income tax. |
| Deemed director NZ | Companies Act 1993 s 126 | No. Who counts as a director, including people the board is accustomed to follow. |
| Deemed depreciation NZ | Inland Revenue claiming depreciation, IR265, Income Tax Act depreciation rules | No. Income tax write down of assets. If you are GST registered you depreciate the GST exclusive price. |
| Deemed permitted activity RMA / deemed permitted boundary | Resource Management Act 1991 s 87BA, Form 9A, Ministry for the Environment | No. Planning permission, not output tax. Clause 9.6 is not a GST Act clause. |
| Deemed interstate supply | Australian GST grouping of states, not Inland Revenue | No. New Zealand does not use interstate GST. |
Deemed fringe benefit GST, and where you file it
A deemed fringe benefit, for GST, is GST Act 1985 section 21I(1): if a registered person has or is deemed to have provided a fringe benefit under the FBT rules of the Income Tax Act 2007, that is treated as a supply of goods and services in the course or furtherance of the taxable activity. Inland Revenue GST for FBT returns (1 April 2026): GST is calculated in your FBT return. Value x 3 ÷ 23 = GST to pay for FBT. That GST is not included in your GST return. You do not pay GST on fringe benefits that are exempt or zero-rated supplies, including low-interest loans, other financial services, international travel, and contributions to employee superannuation and life insurance policies. If an employee pays towards the benefit, Inland Revenue: include that payment in your GST return. FBT maths: FBT calculator.
Pull highlight: Inland Revenue IR546: Charlie retired, kept the taxi, market value $17,250, included 3/23 ($2,250) as a debit adjustment for assets kept after cancelling registration. If you skip the adjustment, you stay liable for GST on a later sale even after you are no longer GST registered.
Deemed export supplies under GST
Deemed export supplies under GST are zero-rating rules, not a fake sale of leftover stock. GST Act 1985 section 11(1)(b): a supply of goods is charged at 0% where the goods have been deemed to be entered for export under the Customs and Excise Act 2018 and the goods have been exported by the supplier. Section 11(1)(e) covers goods that will be deemed entered for export and will be exported as part of, or as a condition of, the supply, subject to section 11(4). Inland Revenue zero-rated supplies (22 June 2026): goods you export, or are going to export in your name, can qualify. Items valued at less than $1,000 that do not need an export entry still need proof you exported them. If you have entered goods for export they must be exported within 28 days of the time of supply, unless Inland Revenue agrees an extension. Aircraft and boats exported under their own power can be zero-rated if exported within 60 days of the recipient taking possession, with full documentation. Walkthrough: exporting goods from NZ.
Deemed permitted activity RMA, clause 9.6, and other non GST “deemed” searches
A deemed permitted activity RMA path is Resource Management Act 1991 section 87BA. Searches for deemed permitted, or deemed permitted activities in the plural, almost always mean this planning path, not a GST return. A deemed permitted boundary activity can be treated as a permitted activity where neighbours on infringed boundaries give written approval, you supply the description and scaled plan, and the consent authority notifies you in writing. The consent authority must take the statutory step within 10 working days of receiving the information it needs. The prescribed form is Form 9A, Application for deemed permitted boundary activity. Ministry for the Environment’s applicant note uses the same deemed permitted boundary language. That notice is planning law. It is not a GST invoice and it is not section 5. Searches for clause 9.6 did not match a GST Act clause or an RMA section of that number. If clause 9.6 sits in a private contract or a district plan, read that document. Do not treat it as Inland Revenue law.
Deemed dividend IRD: IS 21/05, Income Tax Act 2007 subpart CD. A dividend is a transfer of company value caused by a shareholding, often called a deemed dividend when it is a non-cash transfer. That is income tax. GST still follows whether there was a taxable supply of goods or services. Deemed settlor: IS 24/01 and Income Tax Act 2007 sections HC 27 and HC 28, who is treated as a settlor of a trust. Deemed director NZ: Companies Act 1993 section 126, including a person whose directions the board is accustomed to follow. Deemed depreciation NZ: Inland Revenue claiming depreciation. You must claim depreciation on capital assets kept longer than a year. If you are GST registered you claim depreciation on the price of the asset less the GST charged. From the 2025 income year the depreciation rate for non-residential buildings is 0%. None of those rules create a GST deemed supply by themselves.
Screen production per diems, Inland Revenue: DET 25/03 can treat the lesser of $100 or the per diem as expenditure incurred (a deemed deduction) for income tax when you work away from the town where you normally live. If you are GST registered, that $100 is the GST exclusive amount. You still charge GST on the per diems and include them as taxable supplies. Keep taxable supply information for GST even when the income tax deemed deduction applies.
Foreign VAT articles are not myIR
LinkedIn, UAE, Irish Revenue “deemed supplier”, EU platform VAT, and AWS marketplace VAT pages describe other countries’ VAT. A deemed interstate supply is Australian. New Zealand GST is 15% on taxable supplies under GST Act 1985 section 8, with 0% where section 11 requires it. Do not enter UAE 5% VAT, Irish deemed supplier, or ATO interstate labels in a New Zealand GST return.
Inland Revenue IR546 numbers
Open market value $17,250. GST on assets kept: ($17,250 × 3) ÷ 23 = $2,250. File that as a debit adjustment in the final GST return.
Use case: Dunedin plumber cancels GST
Situation: Hypothetical sole trader stops the taxable activity and keeps the work van and leftover fittings. GST: section 5(3) treats those assets as supplied immediately before cancellation. Inland Revenue: current open market value, then (open market value x 3) ÷ 23 if bought on or after 1 October 1986. Action: Get a realistic today price, file the final GST return in myIR, do not skip the debit adjustment.
Use case: Wellington Ltd, staff car
Situation: Hypothetical GST registered employer provides a car that is a fringe benefit. GST: section 21I treats that as a supply. Inland Revenue: GST is Value x 3 ÷ 23 in the FBT return, not the GST return. Action: File FBT in myIR. If staff pay towards the car, put that payment on the GST return as well.
FAQs
What is the deemed definition for a GST supply?
In GST Act 1985 section 5, deemed means the statute treats an event as a supply even if you did not issue a normal sale invoice. The main everyday example is section 5(3): when you cease to be a registered person, goods and services that still form part of the assets of the taxable activity are deemed to be supplied immediately before you cease to be registered.
Are deemed export supplies under GST the same as a deemed sale on cancellation?
No. Deemed export supplies under GST sit in section 11 of the GST Act 1985. Goods can be zero-rated at 0% where they have been deemed to be entered for export under the Customs and Excise Act 2018 and exported. Inland Revenue: goods entered for export must leave within 28 days of the time of supply unless Inland Revenue agrees an extension. That is not the section 5(3) deemed supply of assets you keep when you cancel GST.
Is a deemed interstate supply or UAE VAT deemed supply a New Zealand GST rule?
No. A deemed interstate supply is an Australian GST idea. UAE VAT deemed supply articles describe Federal Decree-Law rules, not the GST Act 1985. New Zealand GST deemed supplies are the events listed in section 5, fringe benefits treated as supplies under section 21I, and related valuation rules. Do not copy UAE 5% VAT or Australian interstate steps into myIR.
Is a deemed permitted activity under the RMA a GST deemed supply?
No. A deemed permitted activity, including a deemed permitted boundary activity, is Resource Management Act 1991 section 87BA. The application form is Form 9A. Clause 9.6 is not a GST Act clause. A council notice that a boundary activity is permitted does not create output tax. GST still follows the GST Act if you later sell the building as part of a taxable activity.
Read Inland Revenue your final GST return, GST for FBT returns, zero-rated supplies, GST Act 1985 section 5 and section 11, Resource Management Act 1991 section 87BA, and Companies Act 1993 section 126. Publisher path: About Us and Contact Us.
Last verified 6 September 2026 against Inland Revenue final GST return (24 April 2026), GST for FBT returns (1 April 2026), zero-rated supplies (22 June 2026), claiming depreciation (29 May 2025), IR375, IR546, screen production per diems, GST Act 1985 sections 5, 11 and 21I, Customs and Excise Act 2018 (as cited in s 11), Resource Management Act 1991 section 87BA, Form 9A, Companies Act 1993 section 126, IS 21/05, and IS 24/01. Ads may fund this free site. Not Inland Revenue. Not tax advice. Figures are working papers, not an Inland Revenue assessment.