The Inland Revenue Department advises that effective from 1st October 2016, non-resident businesses that supply remote services (including online services) to customers resident in New Zealand will be required to register for NZ GST and charge GST on those services.
Remote services can 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; and
- Legal, accounting, insurance or consultancy services.
The IRD say GST-registered New Zealand businesses won’t be charged GST on remote services they purchase from non-resident suppliers if the supply is part of their GST-registered business activities, and before or at the time of purchase they tell the supplier they are GST–registered and give the supplier their New Zealand GST registration number or business number.
Click here for further information supplied on the IRD website.
Please contact us if you have any questions regarding your GST obligations or other tax issues.