GST on Foreign Supplies

Imposing Goods and Services Tax (GST) on the digital economy has been a hot topic this year as New Zealand retailers push for equal GST treatment betweenn local and foreign suppliers.

At present, foreign providers of cross-border services and intangibles (including music, e-books, videos and software purchased from offshore websites) do not have to pay Goods and Services Tax on sales to New Zealand based consumers. This puts local-based providers at a substantial disadvantage because they have to charge GST, which will, at a minimum, increase their prices by 15% when compared to foreign competitors.

For more information on Goods and Services Tax on foreign supplies go to our Latest News page or refer page 1 of the pdf version n click here or contact us.