Parliament

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.

Ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Bridges’ ‘Meth Crooks’ Leadership Failure

Back in June, Bridges publicly accepted that Housing NZ had got it wrong, and that the National government had acted upon bad advice.

Now, you’d think this admission would create a broad bi-partisan basis for compensation to those families who had been unfairly evicted, at considerable cost and emotional distress. Some people had lost their possessions in trying to meet the expense of the upheaval.

Not everyone felt so compassionate. More>>

 

Multimedia & Transcript: Acting PM's Press Conference

Winston Peters, Acting Prime Minister while Jacinda Ardern is in New York for the UN Leaders' Week, held a short press conference Monday after chairing this week's cabinet meeting. More>>

General Assembly: Ardern Rejects Trump Call For War On Drugs

New Zealand will not be signing the United States' document calling for global action on the war on drugs, Prime Minister Jacinda Ardern says. Ms Ardern is in New York for the United Nations General Assembly this week, along with about 140 other world leaders. More>>

ALSO:

Pay Equity: Cabinet Funds Deal For Oranga Tamariki Social Workers

The Minister said that an agreement in principle has been reached between Oranga Tamariki and the PSA on a settlement worth $114.6m over five years. More>>

ALSO:

Hunting v Pest Control: Tahr Control Needed To Protect Alpine Habitats

A cull of introduced Himalayan tahr browsing conservation land in Kā Tiritiri o Te Moana/ the Southern Alps is needed to protect special alpine plants and their habitats, Conservation Minister, Eugenie Sage said. More>>

ALSO:

Protest At Sea: Judge Discharges Greenpeace Activists

The judge today discharged Norman and Howell without conviction, saying the cumulative consequences of a conviction would be out of proportion to what was “low level” offending off the Wairarapa coast in April 2017. More>>

ALSO:

No Reshuffle: Meka Whaitiri Removed As A Minister

Meka Whaitiri will be removed as a Minister with immediate effect... The decision was made after receiving a report into an incident that occurred on 27 August in Gisborne, involving Meka Whaitiri and one of her staff. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels