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Digital products & remote services purchased from offshore sellers

The New Zealand government is passing legislation next month to enable the collection of GST from offshore providers of digital products and services to New Zealand customers.

  • Are you an offshore business supplying digital content (such as movies, music, games, downloads,apps, e-books) or remote services (such as software, gambling, webinars, web design, e-publishing) to New Zealand customers?
  • Do you provide more traditional online services (such as IT, consultancy, legal advisory or insurance)?
  • Do you provide an electronic platform for a principal offshore supplier of digital products and services?

If any of the above apply, you should be well advanced with your planning for potential New

Zealand GST obligations under the “digital” rules changes that will apply from 1 October 2016.  PWC have prepared a useful timeline to help businesses prepare.

Other jurisdictions are also changing legislation that could effect New Zealand tech firms. Australia is introducing similar GST changes in relation to offshore suppliers of digital products and services to Australian customers from July 2017. So if you’re selling into Australia you will also need to prepare.

New Zealand businesses selling digital products or services to private consumers in the EU, Japan, South Korea or South Africa might already be liable for paying GST based on their current laws.

As tax laws evolve to try to cope with this new digital world the impacts on your business could be significant.

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