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A motel operator received bookings from inter-company, at what point of time GST will be paid to the IRD? No invoice has been issued or payment received. However, an accrual of sale has been made. 

It is a question regarding to the time of supply. Normally the time of supply is deemed to take place at the earlier of the time an invoice is issued by the supplier or the recipient or the time any payment is received by the supplier (GSTA s9 (1)).

When it comes to a supply between associated persons, and there are no payment being made, the supply is deemed to take place when the service is performed (s9 (2)(a)(iii)).

Therefore, in this case, the GST payable arised when the room was provided to the operator. 

 

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