The NZ ‘Netflix Tax’ starts in October 2016.
Here is my submission from Sept 2015.
Submission on GST Cross-Border Services, Intangibles and Goods
I am not an accountant, economist or employed in the financial sector. The following is a result of dealing with purchasing eBooks online for the last 5-6 years.
EURO VAT EXEMPTIONS
The report omits to mention that the European version of digital tax exempts suppliers using manual processes. The rules apply to “automated digital services” – that’s anything downloadable or used online, unless it’s custom-made. This mechanism would exclude small, specialized services from the tax regime. Our system should be consistent with the European system.
That the proposal only applies to “automated digital services”.
The euro tax has no minimum exemption, tax is collected from the first dollar earned from digital services. Adoption of this by New Zealand is likely to have the unintended consequence of digital suppliers in other countries (especially the USA) using the geographical indicators to block services to New Zealand. Small operators may not have the expertise or inclination to offer services to NZ and simply block commerce to New Zealanders.
That a minimum threshold of at least 10,000 NZD be adopted to ensure small operators do not abandon services to NZ.
New Zealand could be moved to Europe, in the Atlantic just west of Portugal and Morocco. In the right place, Cooks Strait could act as a toll-gate on shipping from the Mediterranean. Wellington would be a popular stop-off for sailors and Aucklanders could holiday in Spain and France. Unfortunately it may prove too warm for people of Scottish heritage who could migrate to Antartica. But more importantly, we would be nowhere near Australia.
If Geo-forming the planet to move NZ is too difficult, we could join the Euro MOSS as a virtual partner. It their system is so great, then another country of 4.5 million shouldn’t be a problem.