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Posted August 17, 2015 23:57 · last edited August 17, 2015 23:58

Was reading about the new bill regarding GST on imported goods and thought this was very interesting, especially for those circumnavigating geoblocks:

The paper, released by Revenue Minister Todd McClay on Tuesday morning, spells out details of the Government's plan to start collecting GST on the likes of Netflix and Spotify subscriptions, iTunes downloads and e-books.

Similar taxes, which are colloquially known as "Netflix taxes", have been introduced by South Africa, Norway, South Korea and Switzerland, and are in the pipeline in Australia and Japan. 

The tax would be collected automatically but consumers who managed to avoid paying GST on imported services, for example, by tricking suppliers into thinking they lived outside the country, could be fined up to $25,000

http://www.stuff.co.nz/business/industries/71212349/nzs-netflix-tax-will-raise-40m-a-year-as-gst-charged-on-digital-downloads

Not sure how it could be policed... and if the intent of tricking suppliers into thinking they are not in NZ for content purposes not tax avoidance warrants a fine so large. (or fine at all)

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Bullion edited August 17, 2015 23:58

Was reading about the new bill regarding GST on imported goods and thought this was very interesting, especially for those circumnavigating geoblocks:

The paper, released by Revenue Minister Todd McClay on Tuesday morning, spells out details of the Government's plan to start collecting GST on the likes of Netflix and Spotify subscriptions, iTunes downloads and e-books.

Similar taxes, which are colloquially known as "Netflix taxes", have been introduced by South Africa, Norway, South Korea and Switzerland, and are in the pipeline in Australia and Japan. 


The tax would be collected automatically but consumers who managed to avoid paying GST on imported services, for example, by tricking suppliers into thinking they lived outside the country, could be fined up to $25,000

http://www.stuff.co.nz/business/industries/71212349/nzs-netflix-tax-will-raise-40m-a-year-as-gst-charged-on-digital-downloads

Not sure how it could be policed... and if the intent of tricking suppliers into thinking they are not in NZ for content purposes not tax avoidance warrants a fine so large.