New Zealand: New Zealand GST Captures Cross-Border Supplies Of Insurance

Last Updated: 25 November 2016
Article by Ying Chen

The Goods and Services Tax (GST) is now applicable to non-resident insurers who provide cross-border insurance services to New Zealand-resident consumers.

Since 1 October 2016, the Goods and Services Tax (GST) has been applicable to non-resident insurers who provide cross-border insurance services to New Zealand-resident consumers. The changes were made to the Goods and Services Tax Act 1985 and enacted in the Taxation Act 2016. The new rules require non-resident insurers to register and return GST on their supplies if the supplies exceed, or are expected to exceed, NZ$60,000 in a 12 month period.

Cross-border insurance policies covering non GST-registered insureds

The tax rate of 15% applies if the insured is a non GST-registered consumer. The non-resident insurer is required to return the amount of tax on premiums charged to the insured. A deduction of the input tax from the output tax is then available to the non-resident insurer when a claim arises and an insurance payment is made to the insured.

Cross-border insurance policies covering GST-registered insureds

In this case, insurance premiums are not subject to GST. Therefore, no deduction is allowed to offset the input tax of the offshore insurer, should there be any input tax in the account of the insurer. Consequently, the non-resident insurer is not required to return GST on premiums charged to GST-registered insured. However, the non-resident insurer can elect to have an agreement with the GST-registered insured where the supply of a contract of insurance will be zero-rated. In another word, GST will apply at 0% on the insurance premiums. This will allow the non-resident insurer to claim back GST costs incurred in New Zealand in making these supplies, which could include claim costs and expenses incurred in repairing or replacing goods.


If the supplied service exceeds the GST threshold of NZ$60,000 in a 12-month period, the non-resident insurer is required to register for GST purposes. Non-resident insurers have been able to apply to be registered from 1 August 2016, and the registration came into force on 1 October 2016.

Filing GST returns

For the period from 1 October 2016 to 31 March 2017, non-resident insurers have a taxable period of six months, which is considered a transitional period. After 31 March 2017, these insurers will have mandatory quarterly taxable periods beginning on 1 April 2017.

A GST return must be filed by the 28th of the month following the end of the taxable period. The quarterly taxable periods end on 30 June, 30 September, 31 December and 31 March.

Exceptions and rules

  • Zero-rated insurance policies

Life insurance is subject to GST, but rated nil. Property insurance covering risk outside of New Zealand might be considered zero-rating services if the policy wording indicates that the risk is located outside of New Zealand. In addition, insurance policies covering international transportation are also zero-rated.

  • Non-double taxation rule

The non-double taxation rule prevents double taxation from arising on cross-border insurance supplies performed in New Zealand to a non-resident consumer (insured) in situations when the same supply is also subject to a consumption tax in another jurisdiction. The rule allows for a deduction against the non-resident insurer's liability for New Zealand GST to the extent that the same insurance has been taxed in another jurisdiction.


The effect of the extension of the GST rules to cross-border insurance businesses has been strongly felt by London insurers and brokers, who underwrite or operate direct cross-border insurance business in New Zealand, without involving a local cover holder or issuing office.

From the perspective of creating a tax schedule in IPT Quote – TMF Group's online tax calculation tool –the changes to the law mean that non-New Zealand insurers populated in the system need to be recognised to be registered to pay GST in the territory of New Zealand. New subclasses will be created to reflect the different scenarios where taxes are settled in different ways. Tax arrangement bespoke to users will be configured into IPTQ to facilitate users in their New Zealand businesses.

  • Please note, this new legislation does not only relate to insurance, but also relates to all non-resident businesses that supply remote services – including online services and digital downloads – to customers resident in New Zealand as contained in the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Events from this Firm
3 Oct 2019, Webinar, Rotterdam, Netherlands

To view this Webinar in full click here

17 Oct 2019, Webinar, Rotterdam, Netherlands

TMF Group, in partnership with Accounting Today, is hosting a webinar to promote our A&T report from the 2019 GBCI.

24 Oct 2019, Business Breakfast, London, UK

Join TMF Group and ACCA for breakfast and a briefing session dedicated to the latest VAT changes and how they affect the UK.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions