CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. NZ Introduces 'Netflix' Tax On Electronic Services

NZ Introduces 'Netflix' Tax On Electronic Services

by Mike Godfrey, Tax-News.com, Washington

05 October 2016


Cross-border purchases by New Zealand residents of certain electronically supplied services became subject to goods and services tax (GST) on October 1, 2016.

Non-resident businesses may need to register for New Zealand GST and charge GST on their supplies to New Zealand resident customers if they supply online gaming, gambling, video streaming, or music streaming services.

The changes were contained in the Taxation (Residential Land Withholding Tax, GST on Online Services and Student Loans) Bill, which was passed in Parliament on May 10, 2016.

At that time, Revenue Minister Michael Woodhouse said: "Collecting GST from the growing volume of online sales across borders has been an issue of growing concern for some time, so the passing of this legislation marks a very important first step. Currently New Zealand providers are at an unfair disadvantage because they must apply GST to their services, whereas overseas providers do not. This creates an unfair playing field which this legislation will eliminate."

TAGS: compliance | tax | business | value added tax (VAT) | VAT cross-border transactions | gross domestic product (GDP) | goods and services tax (GST) | Belize | offshore | New Zealand | standards | services | VAT goods & services classification | VAT compliance matters | Banking | BEPS

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »