Verified for 2026 Tax Year

GST Niche Rules

Vouchers, gift cards, layby sales, and Unincorporated Joint Ventures. Navigating the tricky edge cases of New Zealand tax law.

Most business transactions fall neatly into standard GST rules. However, certain unique transaction types—like selling the promise of a future good (vouchers) or holding goods until full payment (laybys)—have their own specific timing rules that catch many accountants out.

1. Vouchers & Gift Cards

The rule of thumb: When you sell a standard face-value voucher, you do NOT return GST. You return the GST when the voucher is redeemed.

Example Scenario

December: Customer buys a $100 voucher as a Xmas gift. (No GST payable yet).
February: Recipient uses the voucher to buy shoes. (Vendor pays $13.04 GST in February return).

Expiry: If the voucher simply expires unredeemed, you generally don't pay GST on the profit (unless the voucher specified a specific good rather than a dollar value).

2. Layby Sales

Unlike standard sales (which trigger GST on the invoice date or first payment), Layby sales trigger GST when the final payment is made and the goods are officially transferred.

Cancellations

If the customer cancels the layby and you refund their installments, you keep the cancellation fee. This cancellation fee is treated as a taxable supply, and you must pay 15% GST on it.

3. Unincorporated Joint Ventures (UJVs)

A UJV occurs when two or more parties come together for a specific, temporary project (e.g., property development) but explicitly do not form a company or a formal partnership.

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Separate Registration: Often, the UJV itself is NOT registered for GST.
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The Manager: One party (The Manager) often registers on behalf of the venture and claims all inputs/outputs for the project.

Key Benefit of UJVs

It allows parties with different tax statuses (e.g., a GST-Registered Property Developer and a Non-Registered Landowner) to work together on a subdivision without forcing the Landowner to register and taint their personal property.

Frequently Asked Questions

Do I charge GST when selling a gift card?

Generally, no. When you sell a face-value voucher or gift card, you do not return GST on the sale. You return the GST only later, when the voucher is actually redeemed for goods or services.

When is GST due on a layby sale?

For layby sales, GST is triggered when the final payment is made and ownership of the goods is transferred to the customer. However, if the layby is cancelled, you must pay GST on any cancellation fee you keep.

What is an Unincorporated Joint Venture (UJV)?

A UJV is when two parties collaborate for a specific project without forming a company or partnership. Often, one party acts as the Manager and registers for GST to claim inputs and outputs on behalf of the venture.

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