Iain Blakeley

Barrister - Tax Expert - Business Adviser - Director, Professional, Practical, Fast, Affordable

E-commerce

Bit of a GST fizzer…..

We were eagerly awaiting an announcement in yesterday's Budget 2015 speech on digital services but.... nothing. How many more countries need to take the lead on this before NZ acts?

Australia jumps ahead of NZ in taxing digital commerce

The Australian Government has released draft legislation proposing to apply GST to downloads and streaming of digital content and other services supplied from offshore to Australian consumers. This will affect media such as games, movies, e-books and music downloaded...

GST heat goes on internet sales

Debate is turning into action over taxing internet sales. The Australian Treasurer told media at the Council on Federal Financial Relations Meeting in Canberra on 9 April his Government will require overseas companies selling intangibles into Australia to register and...

Governments using lotteries to collect tax

Tax collectors in the EU are looking more closely at the use of lotteries to tackle VAT evasion. This paper, just published, discusses how existing lottery schemes work and reveals there could be upside for governments. It concludes more empirical evidence is needed...

12 GST thoughts of Christmas

12 GST thoughts of Christmas: 1. There's no GST on gifts (so Santa is probably not GST registered). 2. GST registered businesses can claim back the GST on gifts they buy for staff, suppliers and customers. 3. If you buy someone a gift voucher for Christmas it's quite...

NZ businesses are getting it wrong

I'm seeing increasing evidence of misunderstanding over how the zero rating rules apply. From 1 April 2014 non-resident businesses can register for GST in NZ under a new system which allows them to claim GST refunds on business related costs. Historically a business...

NZ GST legislation inadequate

The NZ GST Act inadequately deals with online supplies of services and should be fixed immediately.I'm referring to how the Act treats those selling products online such as e-books, movies, professional advice, teaching materials, photographs and lots of...

VAT and online sales

This is a very good item on the wider business implications of proposed changes in Europe to the VAT treatment of online digital media sales. http://performance.ey.com/2014/02/20/vat-change-online-sales-just-tax-concern/ Cheers Iain

Global VAT alignment edges closer

At the Global Forum on VAT in Tokyo last week 86 countries signed up to the first agreed framework for applying VAT to internationally traded services and intangibles. The new guidelines set out core VAT principles to be applied when taxing services and intangibles,...

GST and online shopping – is there a cure?

The NZ Government has delayed the Customs / IRD report on GST and online trading to allow the issue to be considered as part of the wider review of how global corporates are taxed. I think the merger of the issues was unavoidable. They are closely linked and the...

12 GST thoughts of Christmas

12 GST thoughts of Christmas: 1. There's no GST on gifts (so Santa is probably not GST registered). 2. GST registered businesses can claim back the GST on gifts they buy for staff, suppliers and customers. 3. If you buy someone a gift voucher for Christmas it's quite...

At least it’s a start

There's a lot of chatter about South Africa's proposed law requiring foreign businesses to charge VAT on sales of digital products to South African residents. If passed the law will cover things like music, videos, software and games sold on line. At the moment, like...

Online trading – again

Once again the issue of internet purchases coming in to NZ GST free is hitting the news. See here In my view this needs to be addressed. The size of the problem will only increase. Having any kind of exemption like this distorts our GST system and favours some at the...

Good news for non resident businesses

Non resident businesses looking to establish supply chains into New Zealand have to go through hoops to register for GST here and recover the GST on their NZ expenses. Often it means they're at a disadvantage when compared to businesses established in New Zealand....

All Black Rugby World Cup jerseys

The furore over being able to buy the new AB jerseys overseas for less than they are sold locally once again calls into question how well our tax legislation is dealing with internet commerce. The pricing of the jerseys overseas would seem to allow them to be imported...

Refunds

A lot of refunds are changing hands at the moment. All sorts of arrangements are being cancelled because of mother nature and today we read Contact and Telecom have discovered billing errors which will require refunds being paid to customers. A word of caution: if you...