Zero-rating of tooling costs to non-residents
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Zero-rating of tooling costs to non-residents
Form Number: IR 589 / Form Code: IR 589
About This Guide
This factsheet explains the change allowing the zero-rating of tooling costs to non-residents.
What is the change?
New Zealand manufacturers can zero-rate the supply of tools if the tools are:
• used in New Zealand solely to manufacture goods that will be exported, and
• supplied to a non-GST registered non-resident.
The type of tools includes jigs, patterns, templates, dies, punches and similar machine tools.
The tools don’t have to be exported with the goods to be zero-rated, but can’t be used to manufacture goods that will be supplied in New Zealand
This change takes effect from 1 April 2014.
