New Zealand Won’t Rush into Online GST
May 13, 2015 New Zealand Taxation
New Zealand will wait to see if Australia can effectively implement a GST on intangible online goods before evaluating the feasibility such a measure for New Zealand.
The Finance Minister Bill English has stated that the government will not rush into copying the updates the GST recently announced in Australia.
Australia now plans to amend its regulations regarding GST to ensure that large international online businesses pay GST for good and services sold to Australians.
The new regulations are especially aimed at addressing the issue of the sale of intangible goods, such as online movies, streaming services, games, and digital books, which are currently not subject to GST if sold by an overseas seller.
Bill English indicated that the government would first see how Australia implements the tax, and how effective the measure is, before considering similar steps in New Zealand.
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