Goods & Service Tax (GST) 3 October 2026
Businesses Reclaim GST, Individuals Can't
Businesses can reclaim the Goods and Services Tax (GST) because they act as intermediaries that collect the tax from customers and remit it to the government, allowing them to claim input‑tax credits. Individuals, who simply pay GST on purchases and are not registered to collect it, have no mechanism to recover the tax, making it a net cost for consumers.
Businesses can claim back GST because the tax is a pass‑through cost, not an expense. Deloitte GST specialist Alan Bullot explains that businesses collect GST from customers and remit it to the government, so they are entitled to a credit. Individuals, however, pay GST on purchases and cannot recover it because they are not registered to collect the tax.
- GST is a consumption tax on goods and services.
- Companies act as intermediaries, collecting and forwarding the tax.
- Only registered entities can claim input‑tax credits.
For the full explanation, see the RNZ article.
Need help understanding this update?
Connect with our domain experts instantly via WhatsApp for customized legal guidance.