Peters welcomes GST decision
Racing Minister Winston Peters is welcoming the Commissioner of Revenue's decision to permit racehorses sold for export to remain in New Zealand for up to 24 months without attracting GST.
In general, goods sold for export are GST-exempt provided they are exported within 28 days, but the Commissioner has the discretion to extend the period if there are good reasons for keeping the goods in New Zealand.
The Commissioner's decision doubles the racing industry's current GST-exemption of 12 months.
"This is great news for the racing industry and good news for the economy," said Mr Peters, who strongly supported the racing industry's application for the increased period.
"The decision will mean that more and more yearlings sold to overseas buyers will remain in New Zealand for up to two years after they are sold.
"We have an internationally-recognised advantage when it comes to developing racehorses. We have the best natural conditions for them, and an abundance of skilled horsemen and women.
"The additional time here will allow New Zealand trainers to transform these young horses into two or three-year-old racehorses primed for successful careers overseas.
"The decision will benefit New Zealand's economy too.
"Even though horses sold for export cannot race under the Rules of Racing here without attracting GST, extra employment opportunities will be created as overseas owners decide to leave their New Zealand-bred horses in the country for their early development," Mr Peters said.
Note: IRD's next Tax Information Bulletin will contain further information on the new ruling.
- Racing Minister's office
Racing Minister Winston Peters is welcoming the Commissioner of Revenue's decision to permit racehorses sold for export to remain in New Zealand for up to 24 months without attracting GST.
In general, goods sold for export are GST-exempt provided they are exported within 28 days, but the Commissioner has the discretion to extend the period if there are good reasons for keeping the goods in New Zealand.
The Commissioner's decision doubles the racing industry's current GST-exemption of 12 months.
"This is great news for the racing industry and good news for the economy," said Mr Peters, who strongly supported the racing industry's application for the increased period.
"The decision will mean that more and more yearlings sold to overseas buyers will remain in New Zealand for up to two years after they are sold.
"We have an internationally-recognised advantage when it comes to developing racehorses. We have the best natural conditions for them, and an abundance of skilled horsemen and women.
"The additional time here will allow New Zealand trainers to transform these young horses into two or three-year-old racehorses primed for successful careers overseas.
"The decision will benefit New Zealand's economy too.
"Even though horses sold for export cannot race under the Rules of Racing here without attracting GST, extra employment opportunities will be created as overseas owners decide to leave their New Zealand-bred horses in the country for their early development," Mr Peters said.
Note: IRD's next Tax Information Bulletin will contain further information on the new ruling.
- Racing Minister's office
