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

 

Gordon Campbell: On The Brexit Vote Aftermath

So, what happens next? Normally when a major policy like this gets so crushingly rejected – by 230 votes, when Theresa May had reportedly been hoping for a defeat by “only” 70- 100 votes – the PM would resign and/or a fresh election called. More>>


Gordon Campbell: On Our History Of Selling Out The Kurds

For the past 100 years, the West has sold out the Kurds over and over again. So much so that it came as a surprise yesterday when US National Security advisor John Bolton appeared to walk back the latest act of betrayal... More>>

ALSO:

Gordon Campbell: On The Reactionary Politics Of Fear

What do you call a situation where the state tries to create panic among its own people for party political gain? As practiced by Theresa May and her faction of the Conservative Party, this has become a well-honed form of state terrorism… More>>

Viva Scoop 3.0! Rounding Up 2018 And Looking Ahead

2018 has been quite a year for Scoop. We are so thrilled to have successfully met the funding target for the first stage of the ‘Scoop 3.0’ plan raising $36,000. This means we can now proceed with the planning phase for the delivery of this bold vision for a community-owned, participatory, independent newsroom... More>>

ALSO: