New Zealand Inland Revenue has launched a public consultation on a draft Interpretation Guideline, “GST - Types of unincorporated bodies,” to clarify how tax rules apply to partnerships, joint ventures, and trustees of a trust.
New Zealand’s Inland Revenue launched a public consultation on 6 May 2026, regarding a new GST guideline for unincorporated bodies. The guide helps taxpayers identify which GST rules apply to their specific organisational structure.
Some GST rules apply specifically to unincorporated bodies and not to co-ownership or cost-sharing arrangements. Other specific rules apply only to joint ventures. This interpretation guideline discusses the nature of various types of unincorporated bodies, with the aim of assisting taxpayers to determine which GST rules apply to their arrangement.
In particular, this interpretation guideline discusses the nature of: partnerships; joint ventures; trustees of a trust; and unincorporated bodies that are not partnerships, joint ventures or trustees of a trust, such as clubs and syndicates.
The analysis also discusses situations where co-ownership or cost-sharing arrangements will not give rise to an unincorporated body.
Goods and services tax (GST) is charged on the supply (but not including an exempt supply) in New Zealand of goods and services by a registered person in the course or furtherance of a taxable activity carried on by that person (s 8). A person is required to become a registered person where they carry on a taxable activity and make supplies over the registration threshold (see s 51).
For GST purposes, an unincorporated body is treated as a separate “person”. An “unincorporated body” is defined as an unincorporated body of persons, which includes a partnership, a joint venture and the trustees of a trust (s 2). The definition is inclusive, meaning that a body that does not fit within the description of a partnership, a joint venture or the trustees of a trust could still be an unincorporated body for the purposes of the definition (Case U19 (1999) 19 NZTC 9,186). However, simple cost-sharing or co-ownership arrangements will not necessarily be unincorporated bodies.
Under s 57, where an unincorporated body is carrying on a taxable activity: the registered person must be the body and not the members of that body; any supply of goods and services made in the course of carrying on the body’s taxable activity is deemed to be supplied by the body and not by any member of the body; and any supply of goods and services to, or acquisition of goods by, any member of the body acting in the capacity as a member of the body and in the course of carrying on the body’s taxable activity is deemed to be supplied to or acquired by the body and not the member.
Where the unincorporated body is a joint venture that is not a partnership, the members of the joint venture can either register the joint venture as an unincorporated body (an ordinary joint venture), in which case s 57 will apply, or they can elect to become a flow-through joint venture (s 57B). If the joint venture is a flow-through joint venture, s 57 will not apply and the members must account for their share of the joint venture supplies and acquisitions individually.
This interpretation guideline discusses the nature of unincorporated bodies in the following categories: partnerships, joint ventures, trusts and other unincorporated bodies. The aim of this item is to assist taxpayers to determine which of the above GST rules apply to their arrangement. It then discusses some factors that should be considered when deciding the nature of an arrangement.
In all cases, the taxpayer will need to show the type of relationship they have entered into in support of their tax position.
The consultation is set to conclude on 17 June 2026.
