New Zealand: Implications of Australia’s proposed GST for remote services

New Zealand: Australia’s proposed GST, remote services

Australia has introduced legislation to implement its version of the goods and services tax (GST) remote services rule. Under the proposal, effective 1 July 2017, sales of digital content and other services to Australian consumers by non-resident suppliers—including New Zealand businesses—would be subject to Australian GST. The Australian proposal mirrors New Zealand’s rules that will be effective 1 October 2016.

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Australia and New Zealand would join other countries—including South Korea and Japan—that are proposing or have implemented similar rules. The EU and South Africa already have such rules in place for digital services. GST on imported goods is also on the horizon. 

KPMG observation

Affected New Zealand businesses will want to have GST systems in place to comply with increasingly global requirements. Also, do not assume that New Zealand and foreign GST requirements will be aligned. There could be important differences. Extending existing GST compliance processes may not be an easy solution. 

 

Read a February 2016 report [PDF 676 KB] prepared by the KPMG member firm in New Zealand: Australian GST changes will impact Kiwi businesses

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