VAT partial

New Zealand specifics

A tax payer apportions GST on the purchase of goods and services and claim for deduction of input tax for taxable supplies depending on the extent that it is used for or are available for use. A taxpayer should estimate the intended taxable use of the goods and services to determine the extent of goods or services used for making taxable supplies. An estimate of the intended used is made by choosing a determination method that provides a fair and reasonable result.

If actual taxable use of an asset is different from its intended taxable use, adjustments may be required.

If the total value of exempt supplies is not greater than the lower of NZD90, 000 or 5% of Revenue from all taxable and exempt supplies for the period beginning at least 12 months from acquisition and ending on the person's balance date, apportionment of input tax is not required.

How Infor meets this requirement

Only a portion of the VAT that is charged on the purchase invoice is reclaimable. Create a tax table with two tax codes: One tax code to configure the portion that is reclaimable and another one for VAT that is non-reclaimable. The percentage for each of the tax codes must also be defined.

See the Tax User Guide.