NBR Radio Special: Will online GST break the internet?
Click the NBR Radio box for on-demand special feature audio: Internet NZ's Jordan Carter and Deloitte's Allan Bullot discuss new online GST rules
Dealing with GST online “without breaking the internet” is the key task for the government, says Internet NZ chief executive Jordan Carter.
The long-awaited legislation to extend GST to online consumer services was finally unveiled by Revenue Minister Todd McClay this week and Mr Carter says the industry is “not overjoyed” by it but it is seen as inevitable as more commerce moves online.
The New Zealand approach has also managed to avoid most of the obvious pitfalls, says Deloitte tax partner Allan Bullot – in particular by setting a $60,000 threshold for applying the tax.
However, he points out small developers who use aggregators such as iTunes will still have GST included, as the $60,000 threshold applies to “electronic marketplaces” and not individual providers.
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