VATLive > Blog > GST > New Zealand 15% GST foreign e-commerce 2016 - Avalara

New Zealand 15% GST foreign e-commerce 2016

  • Aug 27, 2015 | Richard Asquith

New Zealand 15% GST foreign e-commerce 2016

Following the announcement that Australia is to levy GST of overseas e-commerce, New Zealand has issued a discussion paper on the same issue. It is looking at introducing its 15% New Zealand GST on non-resident sellers providing goods to local consumers. At present, there is no GST due, which puts both resident online and traditional retailers at a price disadvantage.

A new GST regime could be introduced at the start of 2016

The document, GST Cross Border Services Intangibles and Goods, covers both goods and electronic services sold to locals. By bringing in e-services, electronic marketplaces, such as Apple iTunes and Google Play, may be required to charge the GST. There would be a registration threshold for such sellers, and the provisional level being discussed is NZ$ 400 per delivery.

New Zealand is keen to look at a simplified registration process for such providers of goods or services, along the lines of the EU’s MOSS regime.

Customers would be required to provide a valid IRD number (tax number) if they are in fact businesses and wish to use the reverse charge mechanism.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.