Proposals for GST and offshore online purchases

PwC's views on the Government's discussion document seeking feedback on proposals for GST and offshore online purchases

Following on from the much anticipated Government's discussion document seeking feedback on proposals for the collection of GST on online purchases of services and intangibles this morning, we are pleased to share our views with you with our special edition of GST Direct (see attached).

PwC welcomes the discussion document: our GST Expert and Partner Eugen Trombitas says, "the discussion document is designed to allow the current New Zealand GST model to deal with the digital economy and offshore online purchases of both services and goods.

"In relation to services, New Zealand is expected to follow the OECD guidelines and international trends to tax the foreign seller of online services to New Zealand customers.

"In relation to imported goods, more work is required on options to collect the duty/GST in the most efficient way, Officials will report to Ministers by October and another consultation paper is likely to follow.

"Foreign sellers will need to take note of the new proposals, and local businesses will have an improved playing field, while consumers will still have choice but offshore sellers may revisit their pricing.

"The discussion document is an excellent piece of work and will take the New Zealand GST system forward," concludes Mr Trombitas.

© Scoop Media