Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search


Govt expects '75% compliance' on foreign GST it can't police

Watch - The government has officially announced that foreign companies will be asked to pay GST on goods sold online to New Zealanders from October next year.

Small Business and Revenue Minister Stuart Nash and Customs Minister Meka Whaitiri spoke at Unity Books in Wellington.

Watch the announcement:

GST was applied to digital services from offshore such as Netflix in 2016.

Mr Nash said the move announced today, which would take force on 1 October 2019, would extend it to goods sold online from offshore as well.

However, the tax will essentially be voluntary, with Small Business minister Stuart Nash saying there was no way for the government to effectively police it.

He said the government was expecting "about 75 percent compliance".

Ms Whaitiri said the move would change how GST was collected, so that instead of applying at the border it would apply at the moment of sale.

"And in turn, buyers of these goods will no longer pay Customs tariffs or border security and biosecurity fees. This will simplify compliance and administration costs at the border," she said.

The system would not change for goods over $400, however.

Prime Minister Jacinda Ardern signalled the move on Morning Report today, saying the government would be announcing "fairer" GST rules.

Finance Minister Grant Robertson in November had to rein in expectations the tax change would be imposed early on, after Mr Nash initially said the government would be making the move.

It comes ahead of the Labour government's first Budget to be announced on 17 May.

Australia had also been planning to collect tax on low-value online goods from last July, but delayed implementation to July this year as it struggled to work out the practicalities. Switzerland is set to introduce one on 1 January next year, and the EU is looking at a similar system.

In the UK and Canada, the equivalent of New Zealand's $400 limit is much lower.

© Scoop Media

Top Scoops Headlines


Joseph Cederwall: On Why the News Crisis Gives Us Hope

Scoop has exciting plans ahead for 2018 and beyond. The news media industry is coming to a critical juncture point. The increasing dominance of the digital platform monopoly giants and new developments such as Artificial Intelligence are contributing to disrupt the industry, render old ad-based models unviable and reshape the way we consume news. However, in all this crisis we see opportunity to create a new, more resilient and more decentralised future for independent news media... More>>


Scoop Turns 19: Once More Unto The Breach!

Alastair Thompson writes: While the fairer intellectual disciplines Science, the Arts and Academia continue to be generously funded by Government, philanthropists and billionaires alike, Journalism of the routine kind - which has for three centuries provided the information infrastructure upon which a pluralist democracy is based - is fast disappearing in a fog of fake news. So then, this is Scoop’s call to arms... More>>


Untruth-In-Packaging: Gordon Campbell On The Media’s Problem With The Trump Circus

After shredding America’s relationships with its traditional G-7 allies, US President Donald Trump is about to sit down to pursue a ‘no nukes for lifting economic sanctions’ deal with North Korea – ie the same trade-off that Barack Obama signed with Iran, and which Trump has just torn up More>>


Gordon Campbell: On Why We Should Be Anxious About Artificial Intelligence

Frankly, the prospect of possibly losing half the existing forms of paid employment to AI does make me feel extremely anxious, given the indifference shown by central government to the downstream social damage caused by the reform process last time around... More>>


Binoy Kampmark: Tom Wolfe The Parajournalist

As New Journalism’s primary advocate, Tom Wolfe headed the field with such experimental forces as Norman Mailer, Truman Capote and Hunter S. Thompson, all dedicated to enriching supposedly factual accounts with excessive flourishes that hurried out the beige in favour of the kaleidoscopic. More>>

  • PublicAddress
  • Pundit
  • Kiwiblog