Story image

Online GST changes a mixed bag for Kiwis, says InternetNZ

17 Nov 15

Yesterday’s announcements on GST for digital goods is a mixed bag for New Zealand internet users, according to InternetNZ’s chief executive Jordan Carter, who says the changes announced by Revenue Minister Todd McClay will Kiwis paying GST on many of their transactions online.

Carter says InternetNZ does not have a view on the policy to introduce GST for online transactions, however it does “believe that if this is done, it must be done in a manner that does not stifle online commerce and that is reasonably workable”. Carter says InternetNZ included this advice in a submission on these proposals earlier this year.

Carter says one of the big challenges is how retailers are expected to know that a customer is from New Zealand. Internet Protocol (IP) address information is one manner that a retailer may try to use.

"We strongly advised the Government that using IP addresses as a means for implementing these measures is technically and logically flawed," he explains.

"It's like determining where someone lives based on their city - and sometimes even less accurate than that."

However, Carter says InternetNZ is pleased that the Government has decided on an appropriate threshold for overseas internet-based retailers before GST collection is required.

"We look forward to the Select Committee process to help improve these proposals and ensure they do not have a chilling effect on New Zealanders’ ability to shop online,” he adds.

Soul Machines' virtual humans go mainstream
An Auckland AI firm renowned for its work creating ‘digital humans’ is now unleashing its creativity to the wider market.
Hands-on review: The Logitech R500 laser presentation remote
With a clever ergonomic design, you’ll never have to glance at the device, unless you deliberately look to use the built-in laser pointer to emphasise your presentation.
GCSB welcomes Inspector-General's report on intelligence warrants
Intelligence warrants can include surveillance, private communications interception, searches of physical places and things, and the seizure of communications, information and things.
Lightning Lab accelerator delves into tourism
“It’s great to see the tourism sector taking a proactive and collaborative approach to innovation."
Apax Partners wins bidding war for Trade Me buyout
“We’re confident Trade Me would have a successful standalone future," says Trade Me chairman David Kirk
Verifi takes spot in Deloitte Asia Pacific Fast 500
"An increasing amount of companies captured by New Zealand’s Anti-Money laundering legislation are realising that an electronic identity verification solution can streamline their customer onboarding."
Homegrown stress relief app to be launched next year
Researchers at the University of Auckland and an Auckland-based creative agency are working together to create a ‘world first’ app that they believe will help with stress relief.
How blockchain will impact NZ’s economy
Distributed ledgers and blockchain are anticipated to provide a positive uplift to New Zealand’s economy.