Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


GST Changes For Electronic Commerce Proposed

The Government is proposing changes to ensure GST does not unfairly disadvantage New Zealand service industries.

The proposals are contained in a discussion document on GST and imported services, released today.

"The discussion document looks at GST and imported services in light of the many changes that have taken place since the tax was introduced, 15 years ago," Revenue Minister Michael Cullen said.

"We are making increasing use of electronic commerce and importing more services than we did in 1986, a trend that is likely to continue.

"Under current law, services purchased from New Zealand companies attract GST, but those purchased from other countries do not. This amounts to a concession for imported services that will increasingly work to the detriment of New Zealand service industries.

"The proposed policy seeks to ensure that the GST system adjusts to the electronic commerce environment and does not unfairly disadvantage New Zealand interests.

"Those most likely to be affected if the policy is adopted are suppliers of financial services, for whom there will be some increase in costs. However, the Government is committed to working with banks and other financial institutions to ease the transition, and consultation with the sector will continue," Dr Cullen said.

The main proposals are:
- Businesses importing services that would normally attract GST in New Zealand will have to pay GST on them if used for activities that do not involve charging GST.
- Management fees and cost allocations charged to a New Zealand subsidiary or branch of an overseas company must be apportioned to ensure the appropriate level of GST is charged.
- Imported digitised products, such as software supplied over the Internet, will be treated as supplies of services for GST purposes.
- Telecommunication services will be regarded as having been supplied in New Zealand if a New Zealand customer initiates the services. Non-resident telecommunications suppliers may have to register here.

Revenue Under-Secretary John Wright said the discussion document presented a robust analysis on a complex and increasingly important area of the GST base.

GST and imported services, is available on the web site of the Policy Advice Division of Inland Revenue at www.taxpolicy.ird.govt.nz and the Treasury web site at www.treasury.govt.nz/tax.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>


Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>


More Justice & Corrections

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news