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GST registration recommended by Australian study

  • News
  • November 10, 2017
  • The Register team
GST registration recommended by Australian study

A study released by the Australian Productivity Commission reinforces the fact that the New Zealand Government should move immediately to make foreign websites register for GST if they’re selling to Kiwi shoppers, says Retail NZ.

GST and duty is not paid on most goods worth less than $400 that are bought by Kiwis from foreign retailers. Retail NZ has strongly advocated for the introduction of GST on these goods under its #eFairnessNZ campaign for the last several years.

"The Australian Government has legislated to require foreign websites to register for Australian GST from 1 July 2018, but asked the Australian Productivity Commission to consider any other options," Retail NZ's general manager for public affairs, Greg Harford, said today. "The Australian Productivity Commission's report, released today, concludes that registering offshore suppliers is the most feasible option for resolving the eFairness loophole and make foreign e-tailers pay their fair share of GST. The report further concluded that most major foreign suppliers will comply with registration requirements.”

Harford says the Australian findings make it even more urgent for the new Labour-led Government to follow Australia’s lead.

“The current loophole in tax policy means that foreign retailers have an automatic price advantage of at least 15 per cent when selling to New Zealanders - which also means that our Government is missing out on around $235 million a year in tax revenues that could otherwise be used to pay for Government services,” says Harford.

Retail NZ estimates that this loophole will cost New Zealand’s government around $5.8 billion over the next 10 years.  

Harford says data from Marketview shows that that nearly 94 per cent of all online shopping by New Zealanders is bought from a small handful of global companies, of which Amazon, Asos and iherb.com are representative.

“These firms need to start paying their way, and it's increasingly urgent for the New Zealand Government to institute a requirement for foreign firms to register for GST,” he says. “The Government has already required foreign websites to do so when they are selling digital services to New Zealanders, but its failure to address the issue of physical goods creates a disadvantage for New Zealand retailers, who have to charge at least 15 per cent more than foreign websites.

Harford describes the fact that from July 1, New Zealand retailers selling online to Australian consumers will need to pay Australian GST while Australian firms can do the opposite for free as “the ultimate irony”.

Retail NZ is renewing its call for New Zealand Government action to close the eFairness loophole, and is optimistic that the new Government will focus on the issue".

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Enhancing the experience: A growing demand

  • Design
  • November 22, 2017
  • Courtney Devereux
Enhancing the experience: A growing demand

Some commentators think food and integrated hospitality offerings will save brick and mortar retail from obsolescence in the age of ecommerce. But does catering to the consumer’s every need result in sales, or are shoppers moving on without making a purchase? In the Enhancing the experience series Courtney Devereux looks into why these two different sectors are working together.

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Styleshoots launches for retailers this week

  • In Association with LookDepot
  • November 22, 2017
Styleshoots launches for retailers this week

Consumers respond well to high quality product images – yet they respond even better to a more immersive, multimedia shopping experience with video content, says LookDepot managing director Andy Mackie.

Read more
 
 
 
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Kiwi retailers cash in on Singles’ Day

  • News
  • November 21, 2017
  • Sarah Dunn
Kiwi retailers cash in on Singles’ Day

The Chinese holiday Singles’ Day, popularised by Alibaba as the ’11.11 Global Shopping Festival’, is now the biggest sale event in the world. Alibaba reports that US$25.3 billion of gross merchandise volume was settled during the 24 hours of Singles’ Day this year. Not all of that went to Chinese retailers, however – a handful of Kiwis made the most of the opportunity.

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Updated: Noel Leeming launches a dedicated after-purchase services division

  • Technology
  • November 20, 2017
  • Sarah Dunn
Updated: Noel Leeming launches a dedicated after-purchase services division

The Warehouse Group’s electronics retailer Noel Leeming has been looking at expanding its focus on services this year. Now, it’s launched a dedicated after-purchase services division: MyTechSolution. The change also means that customers will be charged for access to Noel Leeming's helpdesk if the request goes beyond a "quick fix".

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Cameras aren’t just for security anymore

  • In Association with Axis Communications / Sektor
  • November 20, 2017
Cameras aren’t just for security anymore

In-store video cameras revolutionised loss prevention when they first became available to retailers, but as camera technology continues to evolve, they can now provide a plethora of data that supports better business decisions.

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