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  Reply # 1429283 16-Nov-2015 22:58
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So, amazon prime and hulu are now illegal?





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  Reply # 1429284 16-Nov-2015 23:00
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No one said anything about these services being illegal. Only that you have to pay GST on electronics goods. Nothing changes on physical goods.

RTFA.






 
 
 
 


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  Reply # 1429377 17-Nov-2015 08:44
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JimmyH:
wellygary: Use a VPN to dodge copyright= OK
Use a VPN to dodge GST= up to $25,000 fine

Hmm, yes officer I did it to avoid copyright .........


Sigh.... it isn't about "avoiding copyright" or piracy. It's about parallel importing product that you have paid a legitimate reseller for, and bypassing pathetic NZ offerings with their high prices and limited range. No different to buying a book or a DVD off Amazon. Nothing is getting stolen. You are still paying for the product.


That's as I understood it listening to a tax consultant this morning.  Geo ublock was Ok to get  content not available here   but not OK to bypass GST..




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  Reply # 1429379 17-Nov-2015 08:46
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old3eyes:
JimmyH:
wellygary: Use a VPN to dodge copyright= OK
Use a VPN to dodge GST= up to $25,000 fine

Hmm, yes officer I did it to avoid copyright .........


Sigh.... it isn't about "avoiding copyright" or piracy. It's about parallel importing product that you have paid a legitimate reseller for, and bypassing pathetic NZ offerings with their high prices and limited range. No different to buying a book or a DVD off Amazon. Nothing is getting stolen. You are still paying for the product.


That's as I understood it listening to a tax consultant this morning.  Geo ublock was Ok to get  content not available here   but not OK to bypass GST..


But how are we as consumers expected to tell the IRD, "no sir - I'm not avoiding GST, I'm geo blocking".  I can see that argument going down like a bucket of cold sick




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  Reply # 1429384 17-Nov-2015 08:55
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davidcole:

But how are we as consumers expected to tell the IRD, "no sir - I'm not avoiding GST, I'm geo blocking".  I can see that argument going down like a bucket of cold sick


I certainly wouldn't want to be the test case for that!

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  Reply # 1429387 17-Nov-2015 08:56
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wsnz:
davidcole:

But how are we as consumers expected to tell the IRD, "no sir - I'm not avoiding GST, I'm geo blocking".  I can see that argument going down like a bucket of cold sick


I certainly wouldn't want to be the test case for that!


exactly.  For netflix though, even on the grandfathered plan, it's close enough now to switch to NZ billing.  So at least that one is fairly easy to avoid.....but I guess it'll be $13 + GST as I doubt netflix will absorb the price increase.





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  Reply # 1429416 17-Nov-2015 09:38
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Yeah, I'll probably just cancel my US Netflix and get an NZ one so I can pay the GST and avoid any potential hassle. Although the fact I signed up for it before Netflix was available in NZ should be reasonable evidence that it was for content not GST avoidance. 






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  Reply # 1429418 17-Nov-2015 09:41
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It may solve itself as I note that Netflix is down for last few hours




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  Reply # 1429419 17-Nov-2015 09:43
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ronw: It may solve itself as I note that Netflix is down for last few hours


Bloody NZ government breaking the bank at netflix by suggesting they charge gst.  THEY CAN'T AFFORD THAT!!




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  Reply # 1429420 17-Nov-2015 09:43
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If you do switch to NZ payment and still use GeoUnblock or similar will you still be able to access USA site?

littleheaven: Yeah, I'll probably just cancel my US Netflix and get an NZ one so I can pay the GST and avoid any potential hassle. Although the fact I signed up for it before Netflix was available in NZ should be reasonable evidence that it was for content not GST avoidance. 






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  Reply # 1429424 17-Nov-2015 09:47
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  Reply # 1429479 17-Nov-2015 10:42
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Really think this is much ado about nothing. Yes the larger retailers will start charging GST. Do we like it, no, but we will get over it (or around it, giggle!)
But this is what happens with everyone starts to use something, it pops up as a sound byte at a ministerial breakfast and it becomes legislation.

The interesting bit is the enforcement and proving you did something specifically to bypass gst. The cost to the government (aka all of us) of going through that with a particular person will not be worth it unless they are doing it on a massive scale. Unless of course the idea is that if the website you bought it from does not have a gst option you are instantly guilty in IRDs eyes?

Hah, I can see that flying..

Like a lot of laws with a "please do this or we will fine you (insert insane sum of money here)" clause, I think this will turn out to be don't ask don't tell.

Meanwhile the Ministers who championed this assault on the fortress of technology demons will be given bravery medals, and a raise.

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  Reply # 1429555 17-Nov-2015 12:08
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What happens if I buy an electronic good from someone who doesn't have relationship with IRD ?
Am I expected to make voluntary payments (how) or not use the service ?

A.


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  Reply # 1429595 17-Nov-2015 12:42
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This is how I read the change;

As Netflix now have an NZ operation, targeted and sold in NZ they will be expected to collect GST and pay NZ the GST they take.

As a consumer, if I continue to buy Netflix from the USA or UK, the NZ government could take that as tax avoidance and prosecute me.  Whether they will or not is a different discussion.  I think it is more likely that they will go after Netflix for not stopping me.

We should be asking the question whether this is the thin end of the wedge.  If they are successful in making Amazon take GST for "accounts" held in NZ for electronic purchases (I'm presuming they are only talking about downloads) then it will only be a matter of time before the make the same requirement for physical goods.  From the perspective of Amazon, the compliance cost will be huge (experience from the cost of the GST change in NZ) and they will likely look for other ways to stay "legal".  For example YouShop/NZPost will likely become a collection agency for NZ GST where it is shown that GST has not been taken at point of sale.

If Amazon actually say no to the NZ government, what are the legal powers that could be enforced?




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  Reply # 1429683 17-Nov-2015 14:39
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littleheaven: Yeah, I'll probably just cancel my US Netflix and get an NZ one so I can pay the GST and avoid any potential hassle. Although the fact I signed up for it before Netflix was available in NZ should be reasonable evidence that it was for content not GST avoidance. 


How comparable is the content in Netflix NZ to Netflix USA?  I took a look at Netflix NZ content listing, and it looked pretty limited.

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