The New Zealand tax office has invited submissions on changes to the rules on zero-rating services provided to foreign, non-resident recipients.
Currently, as in Europe, the supply is zero rated for GST purposes based on the 1985 GST Act. However this creates problems for suppliers to individuals on long-term services or if the customer subsequently becomes a tax resident. The new consultation documents proposes to give new flexibilities where customers visit New Zealand or if customers subsequently move to New Zealand, the GST zero-rating is not reversed.
Opinions on the new proposals are invited prior to July 2013.
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 this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.