New Zealand has published further guidance and draft legislation on its new rules which will require non-established suppliers of digital services to register and account for GST locally.
Whilst the legislation still needs to be approved, it looks like the key points will include:
- A threshold of NZ $60,000 (currently around £25,000) will be in place;
- The need to register will only apply when B2C supplies are made;
- The scope of services covered by the new rule will include digital downloads (i.e. music and videos) and also “remote” services, such as legal and accounting services; and
- The new rules are intended to have effect from 1 October 2016.
New Zealand is also looking at the introduction of new rules for non-established suppliers of goods. This would involve those suppliers also having to register and account for GST like their digital supplier counterparts. However, work on these rules is not as progressed as that for digital and so further updates are waited upon to get certainty on what might change.