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Support expected for new 'Netflix tax'

Author
Alex Mason,
Publish Date
Tue, 17 Nov 2015, 5:39AM
(Getty Images)
(Getty Images)

Support expected for new 'Netflix tax'

Author
Alex Mason,
Publish Date
Tue, 17 Nov 2015, 5:39AM

The big players of the digital world will soon need to pay GST to sell their online services in New Zealand.

A bill tabled into Parliament draft law will see global e-tailers impose GST on services such as music, movie and game downloads from next October.

It's been nicknamed the Netflix tax.

Allan Bullot is a tax partner at Deloitte.

He said this will only require non-resident suppliers, who supply more than $60,000 worth of services into New Zealand per year, to register for GST.

"This change is all about getting the big boys and girls of digital services to register for GST in New Zealand," Bullott said.

"It's not about picking up the small, very specialised suppliers."

Bullot is predicting global e-tailers will tow the line on the new draft law, and believes it will be enforced by the court of public opinion.

"All of the very large digital suppliers in the world want to be able to stand up in front of senate inquiries, parliamentary inquiries around the world, and say 'we comply with the tax laws in all the jurisdictions that we do business in'."

He said those big players don't want New Zealand to be an exception.

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