Long running daily Aardvark questions whether Adobe has misunderstood NZ’s new Netflix tax in this article: http://aardvark.co.nz/daily/2016/0902.shtml#continue

The author says:

“It would appear however, that Adobe seem to think that they ought not be charging GST if a company or individual is GST registered.”

My reading of the legislation suggest it’s Aardvark which has got it all wrong. Adobe is quite correct to conclude it does not have to charge the GST if the customer is a GST registered business. The Netflix tax (consistent with GST principles all over the world)┬áis a business to consumer tax not a business to business tax.

Iain

 

 

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