Goods & Service Tax (GST) 3 October 2026
Why Businesses Reclaim GST While Individuals Can't
GST is collected by businesses on sales and can be reclaimed as an input credit when they remit it to the government. Individuals pay GST on purchases but lack a credit system, because the tax framework is designed for commercial entities that charge and offset GST.
Businesses collect GST on sales and remit it to the government, then claim it back as an input credit. Individuals pay GST on purchases but have no credit mechanism, because the tax system is built for commercial entities that charge and offset GST.
- Businesses: collect → remit → claim credit
- Individuals: pay GST → no refund route
For a full explanation see the RNZ interview with GST specialist Alan Bullot here.
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