Content Creators and sellers targeted by Inland Revenue – new payment service providers obligations
New Zealand’s Inland Revenue is shortly to be granted enhanced data collection rights – quarterly transaction data from payment providers in an effort to track and accurately assess Goods and Services Tax. This is a step-up from the current on-demand only powers. The EU’s 2024 payment provider data reforms will follow a similar model.
The information will come in prescribed formats analysing payments to online e-commerce sellers, including:
- Seller details
- Inland Revenue number
- Bank account number
- Telephone number
- Date of birth
The IR will not be provided with customers details in the interests of privacy.
The new measures are aimed at providing the IR with better information on identifying non-compliance, but also helpful guidance for online merchants as to when they should GST register.
The proposal completed a consultation period in August 2021.
Payment service providers offer merchants and shops with accepting electronic payments by a variety of payment methods including credit card, bank-based payments such as direct debit, bank transfer, and real-time bank transfer based on online banking.