Online GST changes a mixed bag for NZ Internet users

[news release] InternetNZ has analysed today’s announcement regarding Goods and Services Tax (GST) treatment for online purchases, and found it to be a mixed bag for New Zealand’s Internet users.”These measures will see New Zealanders paying GST on many of their transactions online,” says Jordan Carter, InternetNZ’s Chief Executive.InternetNZ does not have a view on the policy to introduce GST for online transactions. It does believe that if this is done, it must be done in a manner that does not stifle online commerce and that is reasonably workable. InternetNZ included this advice in a submission on these proposals earlier this year.One of the big challenges is how retailers are expected to know that a customer is from New Zealand. Internet Protocol (IP) address information is one manner that a retailer may try to use.”We strongly advised the Government that using IP addresses as a means for implementing these measures is technically and logically flawed,” says Carter.”It’s like determining where someone lives based on their city – and sometimes even less accurate than that.”However, InternetNZ is pleased that the Government has decided on an appropriate threshold for overseas Internet-based retailers before GST collection is required.”We look forward to the Select Committee process to help improve these proposals and ensure they do not have a chilling effect on New Zealanders’ ability to shop online.”

Below is a link to our submission on online GST:
GST: Cross-border services, intangibles and goods

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