NZ could follow Australia's lead on GST charge

Author
Newstalk ZB Staff,
Publish Date
Tue, 1 May 2018, 7:58AM
The government is set to announce a new GST increase on online purchases. (Photo / Getty)

NZ could follow Australia's lead on GST charge

Author
Newstalk ZB Staff,
Publish Date
Tue, 1 May 2018, 7:58AM

New Zealand could echo Australia when it comes to the roll-out of GST on online purchases.

The Government is set to introduce GST on online purchases from overseas retailers, under the value of about $400.

Deloitte GST specialist Allan Bullot says Australia's tax department has been holding roadshows in New Zealand, ahead of its roll-out of online GST.

He told Mike Hosking New Zealand's Inland Revenue department should doing the same in Australia.

"They've got really good numbers on how many people they expect to register from looking at credit card payments, talking to couriers, all of those sorts of things."

READ MORE:
Exclusive: More tax to be added to online purchases
Retailers excited by GST changes
Ardern: GST increase will bring Govt more money

About 150 New Zealand businesses are expected to register for Australian GST.

ZB Political Editor Barry Soper told Mike Hosking the Government has already pinned down the detail, and is ready to put things in place.

"There's been agreements, certainly with Amazon, so the tax will be collected and consumers will end up paying it."

The change will affect businesses that sell more than $60,000 a year into New Zealand.

Bullot told Mike Hosking most will pay up.

"Will they all comply? Probably not, but a significant number of the larger players certainly will."

LISTEN TO BARRY SOPER AND ALLAN BULLOT TALK WITH MIKE HOSKING ABOVE