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Old 11-17-2015, 03:39 AM   #31
HarryT
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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.
Multinational companies like Kobo are used to dealing with national tax systems. I'm sure that they will comply with the law. They already have systems in place to charge VAT to customers in the EU, so as far as their store is concerned it's probably little more than adding NZ to the list of countries where customers are charged sales tax.

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Old 11-17-2015, 01:07 PM   #32
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It seems like the NZ consumer will not have to pay GST if the company they buy from is not required to collect it? If that is the case then there will be an advantage for smaller sellers who fall below the $60,000 threshold.

E.g. if I buy an ebook from a small retailer, such as Baen perhaps, then the ebook could be GST-free, but if I buy exactly the same ebook from Kobo or Amazon then it will attract an added 15% GST.
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Old 11-17-2015, 01:59 PM   #33
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How would a retailer know if they, in the future, will have NZ$60,000 in sales for the year?

Is the first 60k GST free then it's added when they reach the threshold?
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Old 11-17-2015, 02:52 PM   #34
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Multinational companies like Kobo are used to dealing with national tax systems. I'm sure that they will comply with the law. They already have systems in place to charge VAT to customers in the EU, so as far as their store is concerned it's probably little more than adding NZ to the list of countries where customers are charged sales tax.
Of course, that is obvious to all, as will other large international suppliers foreign to NZ.

My point, apparently missed by you as being so, is that the choice to pay is voluntary and many will not.

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How would a retailer know if they, in the future, will have NZ$60,000 in sales for the year?

Is the first 60k GST free then it's added when they reach the threshold?
One can assume that it will work the same as for domestic suppliers where one is (essentially) required to register for GST when sales exceed the NZD60,000. Simpler return compliance requirements than for domestic suppliers are likely for foreign suppliers.
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Old 11-17-2015, 03:28 PM   #35
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Of course, that is obvious to all, as will other large international suppliers foreign to NZ.

My point, apparently missed by you as being so, is that the choice to pay is voluntary and many will not.
No, I didn't miss your point at all. You said that it would be legal for Kobo not to pay it, and I said that I am sure that they will pay it, "voluntary" or otherwise.
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Old 11-17-2015, 03:30 PM   #36
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No, I didn't miss your point at all. You said that it would be legal for Kobo not to pay it, and I said that I am sure that they will pay it, "voluntary" or otherwise.
Oh dear.
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Old 11-17-2015, 05:40 PM   #37
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If Kobo doesn't add the GST, then their books will be 15% less than Amazon.
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Old 11-18-2015, 02:37 AM   #38
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If Kobo doesn't add the GST, then their books will be 15% less than Amazon.
No, they'll be 13% less (100 is 13% less than 115).
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Old 11-18-2015, 02:59 AM   #39
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No, they'll be 13% less (100 is 13% less than 115).
I want my 2%!
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Old 11-18-2015, 12:26 PM   #40
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Thanks, Harry

Perhaps, the retailers will absorb some of the GST.
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