New Zealand GST could soon be charged on ebooks

[GeoffR]

Originally Posted by AnotherCat

So I can assume that as you think it is ok for companies to pay tax in countries in which they are not domiciled ("voluntarily" for reasons we can only assume, but will be related to coercion) you make a point of voluntarily paying tax that you do not have too ?

I'm not suggesting anyone should pay tax they do not have to. At the moment New Zealand law says that foreign companies do not have to collect GST. That law could be changed so that foreign companies did have to collect GST. Whether they would comply with the law, we would find out once the law was changed. It would cost very little to change the law, so if the govt. wants to prevent tax revenues dropping as people switch to buying online from foreign companies, a law change seems like an obvious thing to try.

[MikeB1972]

Originally Posted by AnotherCat

For digital products it seems to me that they must be planning to send a frigate to threaten every country who does not create legislation forcing all their own internet digital products suppliers to comply with NZ's tax legislation. Wherein lies a problem in that NZ has only got 2 frigates and so only 2 countries can be threatened and those will have to be countries with no navy at all.

Hang on, you've got huge Orc armies, send them.

[Graham]

Originally Posted by MikeB1972

Hang on, you've got huge Orc armies, send them.

"We have a problem, Sauron. Imported rings are cheaper. In fact, there's a short chap from the Shire on his way with a shipment."

Graham

[AnotherCat]

Originally Posted by GeoffR

I'm not suggesting anyone should pay tax they do not have to. At the moment New Zealand law says that foreign companies do not have to collect GST. That law could be changed so that foreign companies did have to collect GST. Whether they would comply with the law, we would find out once the law was changed. It would cost very little to change the law, so if the govt. wants to prevent tax revenues dropping as people switch to buying online from foreign companies, a law change seems like an obvious thing to try.

That sounds wonderful but is actually either very naïve or despotic. You also do not see the fallacy in your "That law could be changed so that foreign companies did have to collect GST".

I do agree that if revenues are dropping through the internet reducing the effectiveness of GST then the Government should be looking at other ways of collection of revenue from its own citizens or by reducing its expenditure, not from the foolish concept of writing "law" pretending that one has jurisdiction over the citizens of other countries.

That is enough from me as you are really just taking a "We are the 99%" ideological, but illogical, approach to the matter.

[AnotherCat]

Originally Posted by MikeB1972

Hang on, you've got huge Orc armies, send them.

I don't think we will need them all though. Seeing that it is received wisdom that we can now just write legislation that makes requirements of the citizens in other countries, we are just going to make it illegal for the armed forces of other countries to resist us.

Of course they may not take any notice but what is the harm of our having such legislation in case some are silly enough to comply even though the "law" has no effect. Of course little Pacific nations who get aid from NZ will be easily coerced by their fear of our Orkish despotic malevolence into complying in case such aid will be discontinued if they don't.

[ebookguy]

Originally Posted by AnotherCat

I don't think we will need them all though. Seeing that it is received wisdom that we can now just write legislation that makes requirements of the citizens in other countries, we are just going to make it illegal for the armed forces of other countries to resist us.

Of course they may not take any notice but what is the harm of our having such legislation in case some are silly enough to comply even though the "law" has no effect. Of course little Pacific nations who get aid from NZ will be easily coerced by their fear of our Orkish despotic malevolence into complying in case such aid will be discontinued if they don't.

If anyone is interested in ebook taxes issues from Europe the USA or elsewhere please do take a look at and hopefully sign my petition all welcome as it is an international petition http://www.tinyurl.com/readingtax

[GeoffR]

New Zealand GST on ebooks from October 2016. From the NZ Herald report:

The Government will start charging GST on overseas online purchases such as music and e-books from October next year.

Revenue Minister Todd McClay introduced legislation to make the move today.

It will require overseas suppliers who sell to New Zealand to register and return GST if their sales to New Zealand residents exceed $60,000 in a year.

Edit: The original govt. announcement: http://www.beehive.govt.nz/release/g...-playing-field

[pdurrant]

That seems a very reasonable bill. Having a minimum sale value means that it doesn't catch tiny suppliers in an admin headache their sales couldn't support.

[HarryT]

This is pretty much identical to the way VAT works in the EU.

[pdurrant]

Originally Posted by HarryT

This is pretty much identical to the way VAT works in the EU.

Except for the minimum sales value. There is no minimum for cross-border sales of electronic services.

[HarryT]

True.

[Fbone]

What would be the GST on ebooks?

[sherman]

Originally Posted by Fbone

What would be the GST on ebooks?

I imagine 15%, like everything else.

[Fbone]

Thanks. I wonder if Kobo's sales are more than NZ$60,000.

[AnotherCat]

Originally Posted by Fbone

Thanks. I wonder if Kobo's sales are more than NZ$60,000.

I would expect easily so.

However, Kobo could legally just decide not to pay it, after all they are not subject to NZ's legislation (unless they relocate to NZ). Foreign suppliers paying NZ GST to the NZ Government is entirely voluntary and many will not bother or even know about it.