New Zealand could introduce ‘Netflix’ GST tax from next year

[RZeroX]

GST will be slapped on Netflix subscriptions, iTunes downloads, Steam games and Amazon e-books within a year.

Revenue Minister Todd McClay said consumers would have to pay GST when they bought digital products and services from overseas firms from October 1.

Netflix' Sydney-based spokesman Luke McClelland would not comment on whether the United States television company might absorb all or any of the 15 per cent charge, or would pass GST on to Kiwi consumers in full by adding it to its $12.99 to $15.99 monthly charge.

Apple, another company which will be impacted, has been approached for comment.

McClay first announced that the Government planned to impose the so-called "Netflix tax" in August.

 

 

Any foreign company that sells more than $60,000 of digital services to New Zealanders each year will be required to register with Inland Revenue and collect the GST on its behalf. The Government had consulted on instead imposing a lower $10,000 annual threshold which would have impacted more foreign firms.

Deloitte tax partner Allan Bullot said it was good the Government was "being more realistic than other countries by not having a ridiculously low threshold that we are never going to enforce".

But he said the October 1 deadline would be a tight one for businesses to meet.

McClay said that if Kiwi consumers used "a virtual private network" (VPN) to make it appear they lived outside the country with goal of avoiding GST, they would be liable for a fine of up to $25,000.

But that would not apply if they were using such "anti-geo-blocking" services for the purpose of accessing content, such as television shows, that they could not access in New Zealand.

While McClay said it would be up to Inland Revenue to implement the rules, Bullot believed that would mean people would not be liable for fines if they were, for example, using VPNs to circumvent blocks on the United States version of Netflix, which is not supposed to be available in New Zealand for copyright reasons.

 

Source: http://www.stuff.co.nz/business/74076061/gst-to-go-on-digital-goods-from-october

[Aytex]

New Zealand and chill?

[paprikman]

Lol I thought nobody live in New Zealand.

[SImoHayha]

Jesus christ man the government needs to piss off.  What next a " Breathing Tax "  !?

[El_indian]

Lol I thought nobody live in New Zealand.

 

population of ~4mill, buddy. 

[Belgarathian]

Jesus christ man the government needs to piss off.  What next a " Breathing Tax "  !?

 

It's a great way of getting money from tourism.

[Alurit]

I don't know how new zealand works, if they don't have VAT on top of it, than sure, but if they do than sod off

[Rebyul]

Jesus christ... I dont even use Netflix, but I hate this

[AresKrieger]

Good job NZ government encourage piracy, stupid politicians.

[dalekphalm]

I find most people's opinions in this thread laughable at best.

 

I do hate it when News Outlets and/or politicians brand these kinds of things as "Netflix Tax". Because it's not. It's the regular sales tax, simply applied to online Streaming Services like Netflix.

 

AFAIK, New Zealand does not use the VAT system. They use a system similar to Canada, with a tax that is applied on-top of the retail purchase price of stuff. The tax is called GST - Goods and Services Tax.

 

You pay the same tax already if you buy a chair, or if you sign up for dance lessons.

 

This is good. Netflix is so cheap that you paying the additional 15% (or whatever the NZ tax is), will be hardly noticeable.

 

Add in a good VPN Service to get you worldwide Netflix access, and it's most certainly worth the cost.

[zacRupnow]

Fuck the New Zealand government.

[Daegun]

Oh no. What an awful group of people the New Zealand government are by closing a loophole in a tax on businesses.

Why get angry and pissed at the government? If prices on something go up, it's because the company selling that product/service has decided to pass it on to the consumer, not the government.

Come on guys, at least have reasoning behind your 'fuck the government' stance.

[CTR640]

Jesus christ man the government needs to piss off.  What next a " Breathing Tax "  !?

Yes, there will be a Breathing Tax. And after that, there will be a "Shit Tax" You have to pay taxes if you wanna take a dump otherwise

you'll be fined a bottle up your butthole. And after that tax, there will be Pee Tax? Not paying the tax? That little dongle will be chopped off and feed to dogs. And the worst tax: Fuck Tax. No more fucking so no more ho's.

 

Ah New Zealand, the most beloved shithole of the planet.

[Belgarathian]

I don't know how new zealand works, if they don't have VAT on top of it, than sure, but if they do than sod off

 

We don't have VAT. We have income tax + GST. There are obviously quotas and import tarrifs for some industries, and from some countries as well but on the whole we have a ton of FTAs so I'm not sure how many there actually are. 

 

 

AresKrieger, on 18 Nov 2015 - 03:01 AM, said:

Good job NZ government encourage piracy, stupid politicians.

 

If Netflix doesn't absorb the 15% GST, then it will boost the $12.99 plan to $14.99 per month (or another 6.5c per day). Hardly encouraging pirates. If you are going to increase your piracy over 6.5c a day, you're already a pirate and don't have a Netflix sub. 

[dalekphalm]

We don't have VAT. We have income tax + GST. There are obviously quotas and import tarrifs for some industries, and from some countries as well but on the whole we have a ton of FTAs so I'm not sure how many there actually are. 

 

 

If Netflix doesn't absorb the 15% GST, then it will boost the $12.99 plan to $14.99 per month (or another 6.5c per day). Hardly encouraging pirates. If you are going to increase your piracy over 6.5c a day, you're already a pirate and don't have a Netflix sub. 

Netflix could absorb the GST - but why would they? Basically no business ever absorbs the GST - it's a sales tax that consumers are supposed to directly pay on every purchase of goods or services.

 

GST is supposed to be paid by the consumer. Netflix prices won't change, but you'll just have to rightfully so pay the normal tax you pay on everything else on it now.

 

Edit: I apologize if I seem harsh towards you. I understand that you aren't explicitly opposed to this taxation (Also, it'll be $14.94, not $14.99 - the tax will be charged on-top of the monthly price - Netflix won't round the prices). This post is more for the "anti government" misguided fools that are bitching about a rightful tax and a government closing an obvious tax loophole.

 

 

Oh no. What an awful group of people the New Zealand government are by closing a loophole in a tax on businesses.

Why get angry and pissed at the government? If prices on something go up, it's because the company selling that product/service has decided to pass it on to the consumer, not the government.

Come on guys, at least have reasoning behind your 'fuck the government' stance.

This guy knows what's going on.

[The_Strict_Nein]

I mean, thinking as Netflix is it not worth just cutting out of New Zealand and letting the people of New Zealand petition their government in outrage?

[TechGod]

Yes, there will be a Breathing Tax. And after that, there will be a "Shit Tax" You have to pay taxes if you wanna take a dump otherwise

you'll be fined a bottle up your butthole. And after that tax, there will be Pee Tax? Not paying the tax? That little dongle will be chopped off and feed to dogs. And the worst tax: Fuck Tax. No more fucking so no more ho's.

Ah New Zealand, the most beloved shithole of the planet.

What the hell

[dalekphalm]

Are they saying they get $60,000 from NZ?

 

I mean, thinking as Netflix is it not worth just cutting out of New Zealand and letting the people of New Zealand petition their government in outrage?

Considering that $60,000 a year is only 384 subscribers, I'm pretty damn confident that Netflix makes A LOT MORE than $60,000/year from NZ. A subscription is (apparently) $12.99/month. That's $155.88 a year from each subscriber.

 

People shouldn't be outraged. People should pay their taxes.

[The_Strict_Nein]

Considering that $60,000 a year is only 384 subscribers, I'm pretty damn confident that Netflix makes A LOT MORE than $60,000/year from NZ. A subscription is (apparently) $12.99/month. That's $155.88 a year from each subscriber.

 

People shouldn't be outraged. People should pay their taxes.

 

I misread it, sorry.

[Belgarathian]

Netflix could absorb the GST - but why would they? Basically no business ever absorbs the GST - it's a sales tax that consumers are supposed to directly pay on every purchase of goods or services.

 

GST is supposed to be paid by the consumer. Netflix prices won't change, but you'll just have to rightfully so pay the normal tax you pay on everything else on it now.

 

Edit: I apologize if I seem harsh towards you. I understand that you aren't explicitly opposed to this taxation (Also, it'll be $14.94, not $14.99 - the tax will be charged on-top of the monthly price - Netflix won't round the prices). This post is more for the "anti government" misguided fools that are bitching about a rightful tax and a government closing an obvious tax loophole.

 

 

This guy knows what's going on.

 

I know it's supposed to be paid by the consumer, but from a business perspective if the increase in cost by 15% causes a reduction in subscriptions of greater than 15%, then they're better off absorbing the GST costs. If the 15% increase, only reduces their customer base by less than 15%, they will pass on the costs. Yes a 15% hike in price would be $14.94, but I'll bet you a free coffee via paypal that they make the plan $14.99.

[Guest]

I don't know how new zealand works, if they don't have VAT on top of it, than sure, but if they do than sod off

VAT is GST

[Belgarathian]

VAT is GST

 

To my knowledge it's not.... I was under the impression that VAT was only applied to products imported from outside the EU. 

 

-edit- VAT is GST, but in the EU there are exemptions. 

[Guest]

To my knowledge it's not.... I was under the impression that VAT was only applied to products imported from outside the EU. 

Ah - didn't know that was a thing

[Belgarathian]

Ah - didn't know that was a thing

 

You were right, I did a bit of digging and VAT = GST but there are exemptions which lead to my misunderstanding. 

[Darell3]

It's like NZ copying Australia's government, Australia introduced these kinds of online tax that is going to take place and oh look, NZ joined the bandwagon ffs NZ.