New Zealand’s Inland Revenue Department introduced its 15% Goods and Services Tax on digital or electronic services provided by non-residents to consumers from 1 October 2016. There is a GST registration threshold of NZD 60,000 per annum, and there is no requirement to appoint a Fiscal Representative. There is a simplified non-resident registration process, without the right to reclaim New Zealand input GST. Electronic marketplaces facilitating the service will instead be responsible for the GST. B2B transactions are subject to the reverse charge.
New Zealand imposed GST on imported e-commerce goods sold be non-residents if their value does not exceed NZD 1,000 from 1 December 2019. But a foreign seller or facilitating electronic marketplace need only register if they pass the local threshold of NZD 60,000 sales per annum. This is similar in structure to the EU e-commerce VAT package of 1 July 2021. Australia has also introduced a low-value goods e-commerce sales VAT regime
This follows the EU 2015 e-services VAT reforms, and has since been replicated by Norway, Australia, Japan and many others since. New Zealand made foreign providers of goods to its consumer liable to the same GST regime from 1 December 2019. Check our global VAT and GST on digital services tracker to see which other countries have introduced indirect taxes on electronic services to consumers.
Electronic marketplace liabilities
Electronic platforms, marketplaces and similar intermediaries may be held responsible for charging and collecting GST on behalf of their third-party sellers. They become the deemed supplier, and must register for New Zealand GST. Note: this is an option, and the supplier may opt to retain taxing rights and obligations.
Payment service providers are excluded from the definition of electronic platforms. Also those providing a carriage service (such as those operated by internet service providers and telecommunication companies)
What digital services are liable to New Zealand GST?
Online remote services subject to GST include:
- digital content such as e-books, movies, TV shows, music and online newspaper subscriptions
- games, apps, software and software maintenance
- online gambling services
- website design or web publishing services
- legal, accounting, insurance or consultancy services.
Registering for GST on remote services
New Zealand applies a GST registration threshold of NZD 60,000 per annum. This is based on the previous year or if the trader expects to pass it in the current year. Non-residents must include their provision of remote services and goods in calculating the threshold. It is possible to voluntarily register. New Zealand offers a simplified registration process for foreign digital services or e-commerce goods. This may be done online, via email or post.
Once registered, a non-resident does not have to produce GST invoices. Sales to taxable persons (B2B) are treated under the reverse charge when the purchaser becomes responsible for reporting the GST through their return.
Filings are monthly, unless turnover is below NZD24 million in which case it is quarterly.
Evidence to prove GST liability
Non-resident providers must track the location of purchase / consumption of their goods to determine if it is a non-taxable consumer based in New Zealand. They may rely on the following examples of residency:
- IP address of computer, mobile or other device
- Billing or credit card address
- Dialling code of land or mobile number provided
- any other commercially relevant information.
Asia Pacific VAT on digital services
|Comments (click for details)||Rate||Date||Threshold||Comments|
|Australia||10%||Jul 2017||AUD $75,000|
|Armenia||20%||Jan 2022||AMD 115million|
|Bangladesh||5% - 15%||Jul 2019||–||B2B and B2C|
|Bhutan||7%||Jul 2021||Nu 5million|
|Cambodia||10%||Mar 2022||KHR 250m|
|China||6%-13%||N/a||Nil||Withholding VAT; B2B and B2C|
|Indonesia||11%||Aug 2020||IDR600m or 12k customers|
|Japan||10%||Oct 2015||JPY 10 million|
|Laos||7%||Feb 2022||LAK 400m|
|Nepal||13%||Jul 2022||Rupees 2m||Also 2% DST|
|New Zealand||15%||Oct 2016||NZD 60,000|
|Pakistan||2%||Sep 2021||Nil||Marketplace Withholding VAT|
|Philippines||12%||Jul 2023 ?||P 3million|
|Singapore||7%||Jan 2020||S$ 100,000|
|South Korea||10%||Jul 2015||Nil|
|Taiwan||5%||May 2017||NTD 480,000|
|Thailand||7%||Sep 2021||1.8m Baht|