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New Zealand

New Zealand

Explore the requirements and rules that apply to electronically supplied services in New Zealand.

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Supplies of e-services to consumers (B2C)

Is a non-resident supplier of e-services to consumers located in this country obliged to register and/or account for local VAT/GST on such supplies in this country?

Yes

If there is no current requirement, is there any anticipated change to that position?

The requirement is already in place.

Is an invoice compliant with the VAT/GST law in the customer's country required?

No

Supplies of e-services to businesses (B2B)

Is a non-resident supplier of e-services to business customers located in this country obliged to register and/or account for local VAT/GST on such supplies in this country?

No, B2B supplies of remote services are exempt as long as the supplier obtains confirmation of the customer's business status.

If there is no current requirement, is there any anticipated change to that position?

Not required, but a non-resident supplier can opt in to register and charge GST.

If there is not a requirement for the non-resident supplier to register for VAT/GST, are the services subject to VAT/GST withholding by the customer?

No

Where there is a current or future requirement for non-resident suppliers to register and/or account for local VAT/GST or a customer VAT withholding requirement:

When did/will that requirement come into effect?

1 October 2016

What is the applicable annual turnover threshold (in local currency) for that requirement to apply?

60,000 New Zealand dollars (NZD)

Is simplified or standard registration required?

Simplified

Does the requirement apply to all e-services?

Yes, all electronic services are included, but the requirements are broader than that – they include all “remote services”. The definition of a "remote service" in New Zealand refers to a service where there is no necessary connection between the location of the supplier and the location of the recipient at the time of service. Where a service can be provided via electronic means, it would indicate that there is no necessary connection between the locations of the supplier and the recipient. As such, prima facie, those services come within the scope of the remote services rule in New Zealand, but non-electronic remote services e.g. legal advice do also.

Contacts

For further information please contact:

Peter Scott
Partner
T +64 9 367 5852
E pcscott@kpmg.co.nz

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