GST law for online services passed
The Taxation Bill imposing GST on digital products and other remote services sold online by offshore sellers to New Zealand consumers has passed its final reading in Parliament today.
“This puts New Zealand in line with international best practice and one step ahead of Australia, where the GST tax will only be implemented from 1 July 2017,” says Eugen Trombitas, PwC Partner.
“The GST law change is significant because it will address the current tax leakage on services purchased from offshore sellers, and will ensure that our GST legislation is current and relevant in today’s digital marketplace.”
The new law will require offshore sellers of remote services to private New Zealand customers to register and pay GST from 1 October 2016. With less than five months before the new rules start, businesses should already have undertaken an assessment to determine whether they will need to comply with the new rules and register.
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