Chartered Accountants & Tax Specialist
General update by IBBZ Accounting on latest tax news, business growth and technology tips.
In the article Making Tax Simpler “Better Administration of PAYE and GST”, the Government have introduced new proposals to improve the tax systems in New Zealand. Such changes relates to PAYE and GST.
The most significant improvement they want to make is to “use modern digital technology to provide faster, more accurate and convenient interactions with Inland Revenue”. This means that they want to integrate PAYE and GST filling process into accounting software.Continue reading
Online GST changes and its impact on taxpayers.
According to the Revenue Minister, Todd McClay, the Government is looking at a way to charge GST on cross-border services, intangibles and goods with the focus on collecting GST from overseas suppliers of online products such as e-books, music and videos and GST on low-value imported goods. At present, there is no GST charged on overseas online- service provider and low-value of imported goods.
The purpose of this tax is to create a fairer competition for domestic suppliers and increase revenue for the government. Globalisation means the big world becomes smaller, as you can do business, buy and sell anything with people around the world. The number of New Zealanders buy goods and services from overseas have increased substantially over the last few years. Mr McClay claims that the GST foregone on overseas purchased is around $180 million a year and it is growing at around 10 percent each year. Moreover, the new rule is also fairness. Currently, overseas supplier is benefiting as there is no GST charged on their goods and services, so they can charge a lower price compared with New Zealand suppliers who have to include GST in the sale price.