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New Zealand levies GST on foreign digital services 2016

  • VAT
  • 18 November 2015 | Richard Asquith

New Zealand levies GST on foreign digital services 2016

New Zealand is to bring non-resident providers of B2C digital services into the 15% Goods and Services Tax (GST) net from 1 October 2016.

E-services included within the new tax includes: downloads of music, video and games; the online purchase of software; e-books and subscriptions to membership sites etc.

Foreign providers of digital services will be required to register with the New Zealand Inland Revenue, and complete quarterly GST filings online. GST registered providers will have to provide VAT invoices to their customers.

The reverse charge on B2B transactions will be applied, meaning there is no requirement charge GST on any such transactions.

Global VAT on digital services

Australia is planning to include foreign e-service providers within its 10% GST net from 1 July 2017. The European Union has done so for many years, and changed the VAT rate rules in 2015 to charging where the customer is based as part of the MOSS VAT reform. South Korea, Japan and South Africa also require foreign digital services providers to levy their consumptions taxes.


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 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.