Section DB 2 — Income Tax Act 2007: Goods and services tax

DB 2 Goods and services tax No deduction (1) A registered person is denied a deduction for the following: (a) input tax on a supply of goods or services to them: (b) goods and services tax (GST) payable by them to the Commissioner. Deduction (2) A registered person is allowed a deduction for deductible output tax but only to the extent to which— (a) they are allowed a deduction for expenditure that they incur in acquiring or producing the goods or services; or (b) they are allowed a deduction for an amount of depreciation loss for the goods or services. Exclusion (3) Subsection (2) does not apply to an adjustment made in relation to a capital asset. Depreciable property (4) The provisions that apply when an amount of depreciation loss is quantified by reference to the cost of an item of depreciable property to a person are in section EE 54 (Cost: GST). Link with subpart DA (5) The link between this section and subpart DA (General rules) is as follows: (a) subsection (1) overrides the general permission: (b) subsection (2) supplements the general permission; the general limitations still apply. Defined in this Act: amount , Commissioner , deductible output tax, deduction , depreciable property , depreciation loss , general limitation , general permission , goods , GST , GST payable , income , input tax , output tax , pay , registered person , services , supplement Compare: 2004 No 35 s DB 2 Section DB 2(2): amended, on 1 April 2011 (applying to taxable supplies made on or after 1 April 2011), by section 37(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section DB 2(2): amended (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008-09 and later income years), by section 37(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section DB 2(2): amended (with effect on 1 April 2008), on 7 December 2009, by section 10 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63). Section DB 2(3): substituted, on 1 April 2011 (applying to taxable supplies made on or after 1 April 2011), by section 37(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section DB 2 list of defined terms deductible output tax : inserted, on 21 December 2010, by section 37(4)(a) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section DB 2 list of defined terms taxable supply : repealed, on 21 December 2010, by section 37(4)(b) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).