Goods & Services Tax

National softening public up for a new tax: GST on Internet purchases

Whichever way you twist this, it is something you’ll have to pay that you’re not paying now.  

Changes to online GST could be in the works with a discussion document set to be released and Prime Minister John Key is in favour of it.

Revenue Minister Todd McClay put the idea before Cabinet today, and Mr Key said while no decision had been reached yet, the document would discuss adding GST to online services such as iTunes and for importing goods.

Currently, Kiwis buying things online don’t have to pay GST on purchases under $400, which is the second-highest in the OECD.

It isn’t included on imported digital products such as music and films.

The Australian government, which has a threshold of AU$1000 for imported goods, is looking at reducing it to AU$20 or possibly lower. It has already introduced a 10 percent digital services GST which was announced in this year’s Budget.   Read more »