Close
 

New Government promises to make foreign websites register for GST

  • News
  • November 16, 2017
  • Sarah Dunn
New Government promises to make foreign websites register for GST

The de minimis loophole which means offshore retailers have avoided paying GST on goods under $400 purchased online will “absolutely” be closed, Revenue Minister Stuart Nash has said.

In an interview with Newstalk ZB, Nash said the National-led Government had not gone far enough when it introduced the “Netflix tax” to gather GST on services and electronic purchases. He acknowledged that the lack of a blanket GST tax gave foreign retailers selling into New Zealand an unfair advantage.

“It gives a 15 per cent competitive advantage to [retailers] overseas,” Nash told Newstalk ZB. “While our retailers had to deal with GST, overseas people didn't. It's the right thing to do."

Nash did not provide any detail on how or when the changes he discussed would be put into place. Finance Minister Grant Robertson later backpedalled on Nash's announcement, telling the NZ Herald that closing the loophole was part of Labour's policy but the Government was still working out how to implement such changes.

He said the Government was only looking at the issue and no decisions had been made.

"I think what the Minister of Revenue was saying was that there's still quite a lot of work to do on it. This is clearly an area where there is an element of unfairness in our tax system and we want to investigate that," Robertson told the NZ Herald.

Retail NZ has been advocating for these changes for years under its #eFairnessNZ campaign. Its general manager for public affairs, Greg Harford, welcomed Nash’s comments.

"For many years, New Zealand retailers have been disadvantaged by the fact that they have to pay tax in New Zealand while foreign websites don't, even though they compete in the New Zealand market.  This is the first time that a Revenue Minister has committed to fixing this issue, and we want to congratulate Mr Nash on his leadership,” Harford says.

"While the timeline has yet to be finalised, we are really pleased that Minister Nash is taking the issue seriously, and we urge him to implement a GST registration requirement from 1 July 2018, in line with the Australian Government.

The Australian Government has legislated to require foreign websites – including those from New Zealand - to register for Australian GST from 1 July 2018.

"GST is a key component of Government revenue streams, and a GST registration requirement will net the Government around $5.8 billion over the next 10 years,” Harford says. “Closing the current tax loophole will also mean that New Zealand businesses are no longer disadvantaged by Government tax policy.”

Harford says the issue of GST on purchases from foreign ecommerce retailers is becoming more pressing as online shopping grows in popularity, and as Amazon prepares to launch in Australia. It’s “just not right” that Kiwi businesses supporting the New Zealand economy and keeping communities vibrant are taxed while overseas corporations are now, he says.

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 
News

Stock it like it's hot

The ecosystem behind stocking systems is becoming more and more complex. Jai Breitnauer explores.

 
 
 
 

A story of yearning, drama and a dryer from The Warehouse

  • Opinion
  • June 14, 2018
  • Aden Bushell
A story of yearning, drama and a dryer from The Warehouse

KFC may have put out a range of erotic novels in 2017, but for sheer sensuality and enthusiasm, The Warehouse's recent Facebook response to a woman desperately seeking a dryer may have the Colonel beaten. Isentia's client services director, Aden Bushell explains what the Red Sheds did right in this scenario.

Read more
 
topics
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
The future is bright
We spoke with four retailers in their twenties ...
Spotlight on signage
At first glance, the humble in-store sign might ...
How to open a store
Sarah Dunn considers what it would take to ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
All things to all people
Kiwi retailers share their omnichannel strategies.
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Sisterhood
Women in retail help one another. We spoke ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 

What a stack

  • In association with eStar
  • June 14, 2018
  • Andrew Buxton
What a stack

eStar CEO, Andrew Buxton, defines retail system building blocks and the importance of getting them right.

Read more
 
 

Karen Walker turns her Newmarket store into a charity shop

  • Design
  • June 13, 2018
  • Sarah Dunn
Karen Walker turns her Newmarket store into a charity shop

A mini pop-up located in Karen Walker’s ‘Playpark’ Newmarket store will offer not premium fashion, but a selection of vintage hand-knitted garments from the Dove Hospice charity shop. All money raised from sales of the handknits will go to Dove Hospice.

Read more
 
 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita@tangiblemedia.co.nz or call 022 639 3004

View Media Kit

}