Tax & GST
New Zealand Inland Revenue Department on Time Trade. Response from the IRD dated 24 September 2009
- The Commissioner of Inland Revenue considers Time Trade a form of barter.
- Time Credits give rise to a valuable consideration for work performed.
- Anyone using Time Credits as part of any business activity must pay tax and GST on such transactions…based on the currrent market value of the work carried out.
- If transactions occur outside of a person’s business activity they will not be liable to income tax or GST
“Therefore for those persons who do not undertake a business activity or those persons who undertake activities outside of their ordinary business activity would NOT be liable to account for such transactions”
IRD Time Trade Scenario – example of tax treatment
A plumber who is registered for GST undertakes some gardening work for another person and receives a credit for the hours volunteered would not have to account for this transaction.
However, if the plumber provides time to repair a leaking tap, then any time credit arising for this transaction would need to be converted in to a cash equivalent and be liable for income tax and GST and need to be incorporated in the appropriate tax returns.
See also
Letter to the IRD Seeking clarification on the tax treatment of Time Trade












