News release

Budget 2015: A signal about GST on overseas online purchases

Budget 2015 signals that New Zealand is looking at following Australia's recent lead in taxing services purchased online from offshore sellers. Low-value goods purchased online will also be looked at.

"New Zealand can't ignore this issue any longer so it's encouraging to see Budget 2015 confirms this is a key focus area on the tax policy work programme - the digital economy has a profound impact on GST,” PwC Partner and GST specialist Eugen Trombitas says.

"Making up around 30% of the Government's tax take, GST is a tax on consumption and when this consumption is taking place in New Zealand, GST should be charged. New Zealand retailers and businesses have been insisting on a level playing field and there's a danger we could fall behind the international pace and best practice if nothing is done soon.

"Another key consideration is there needs to be a specific solution for goods and another specific solution for services," says Mr Trombitas.

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