A change made to tax rules will provide businesses with faster access to GST refunds from February next year, says Revenue Minister Michael Woodhouse.
The Tax Administration (Direct Credit of GST Refunds) Order 2016 will make it compulsory for Inland Revenue to provide GST refunds by direct credit to a taxpayer’s identified account, resulting in much faster GST refunds.
“Under the current process, a cheque from Inland Revenue takes an average of 10 days until the funds become available to the taxpayer. Direct credit means the funds will be available to the taxpayer in just two days,” Mr Woodhouse says.
“This change is the result of extensive public consultation in November 2015, which sought feedback on how digital technology might be used to provide more streamlined PAYE and GST processes for taxpayers.
“It is just one of a number of changes that will be introduced next year as part of Inland Revenue’s modernisation programme to make it easier and faster for New Zealanders to manage their tax affairs.”
From 7 February 2017 GST refunds will only be made by cheque if Inland Revenue does not have a customer’s bank details or if there are extenuating circumstances, such as hardship.