Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.




4717 posts

Uber Geek
+1 received by user: 2201

Trusted
Subscriber

Topic # 204646 11-Oct-2016 10:42
One person supports this post
Send private message

Just got the email from Dropbox notifying that they'll be charging GST from next month. Good thing too; otherwise how would all those no. 8 fencing wire Kiwi companies compete on a level playing field with Dropbox?





iPad Air + iPhone SE + 2degrees 4tw!

These comments are my own and do not represent the opinions of 2degrees.


View this topic in a long page with up to 500 replies per page Create new topic
 1 | 2
5287 posts

Uber Geek
+1 received by user: 2144


  Reply # 1649059 11-Oct-2016 11:46
Send private message

Fantastic.  I'm happy to pay GST on my online services.





Mike



4717 posts

Uber Geek
+1 received by user: 2201

Trusted
Subscriber

  Reply # 1649066 11-Oct-2016 11:52
2 people support this post
Send private message

MikeAqua:

 

Fantastic.  I'm happy to pay GST on my online services.

 

 

 

 

I don't necessarily mind either. I just despise the disingenuous 'It's to provide a level playing field' argument. It's not: the government has simply seen a missed revenue opportunity and has decided to take it. If it was about a level playing field they would only apply it where there was a local company to be disadvantaged.





iPad Air + iPhone SE + 2degrees 4tw!

These comments are my own and do not represent the opinions of 2degrees.


 
 
 
 


5287 posts

Uber Geek
+1 received by user: 2144


  Reply # 1649105 11-Oct-2016 12:13
Send private message

I agree 'level playing field' is inaccurate. There are many other differences in regulation that affect competitiveness.

 

But it seems efficient to just tax in a blanket fashion rather than focus on individual industries where there is currently a NZ based competitor.  If nothing else you have removed one competitive barrier to a NZ business establishing.





Mike

14446 posts

Uber Geek
+1 received by user: 1896


  Reply # 1649111 11-Oct-2016 12:17
Send private message

It it wisely referred to as the lightbox or Netflix tax tax as they lobbied hard to get it brought in due to Netflix not charging GST. so it only applies to online services. But the fact is that many nz companies have been competing for years against overseas companies for business.

622 posts

Ultimate Geek
+1 received by user: 12


  Reply # 1649148 11-Oct-2016 13:27
One person supports this post
Send private message

it shouldnt be a surprise.. it was leaked in the PPTP trade agreement but the voters didnt believe it did they :)

 

 

 

I dont get this level playing field either.. the middle men have ridiculous mark ups.. just buy online from aliexpress vs same product in NZ.. 100 to 1000s percent increase

 

 

 

its just more tax that affects the lower income people

 

 

 

sure tax is fine but maybe they need to make sure the livable wage is met.. like $19/hour or that expert

 

stating $25/hour is what all need to be stating on (Nigel L. show on tv recently)


14446 posts

Uber Geek
+1 received by user: 1896


  Reply # 1649157 11-Oct-2016 13:36
Send private message

kiwigeek1:

 

it shouldnt be a surprise.. it was leaked in the PPTP trade agreement but the voters didnt believe it did they :)

 

 

 

I dont get this level playing field either.. the middle men have ridiculous mark ups.. just buy online from aliexpress vs same product in NZ.. 100 to 1000s percent increase

 

 

 

its just more tax that affects the lower income people

 

 

 

sure tax is fine but maybe they need to make sure the livable wage is met.. like $19/hour or that expert

 

stating $25/hour is what all need to be stating on (Nigel L. show on tv recently)

 

 

 

 

People can live on a lot less, the problem is that people buy convenience. Rather than growing their own food, and making stuff, instead of buying premade stuff. Also people get people in to do jobs these days, instead of DIYing it. I think people are just lazy.


622 posts

Ultimate Geek
+1 received by user: 12


  Reply # 1649160 11-Oct-2016 13:41
Send private message

yep disposal age and lazy.. I agree..  but if you tax people gst it hits everyone not just the high earners

 

its added on things you need.. and if you grow a garden you know its lots of work and wont feed you

 

all year.. if you watch survival shows.. like life free or die you can see every day is working to get food

 

on table.. hence why society was made.. to take the burden away

 

sure you can save a little with own garden and tomatoes can taste way nicer right of the plant too :)

 

 


6434 posts

Uber Geek
+1 received by user: 1571


  Reply # 1649163 11-Oct-2016 13:44
One person supports this post
Send private message

The absence of kiwi companies competing with drop box is not evidence that a 'level playing field is not needed"

 

 

 

There have been quite a few kiwi companies doing cloud storage in various guises.   

 

So it's just as credible to argue that the fact the kiwi alternatives couldn't achieve scale is evidence that the 'level playing field' is needed.

 

 

 

In other words, it's not evidence one way or the other.

 

 

 

 

 

(and adding GSt doesn't completely level the playing field - there are still plenty of other advantages overseas businesses have vs kiwi based companies.  It should be called "making the playing field a little bit less skewed"

 

 


12133 posts

Uber Geek
+1 received by user: 3947

Trusted
Lifetime subscriber

  Reply # 1649450 11-Oct-2016 20:38
Send private message

This particular interpretation is very odd

 

 

 

"Are Dropbox Business customers also charged GST?

 

No. This tax only applies to individual customers in New Zealand (as opposed to businesses). For Dropbox, this means that only customers with Dropbox Pro subscriptions will see GST. It does not apply to subscriptions on a Dropbox Business plan."

 

 

 

So what happens if you are a business, using the Pro plan?






14446 posts

Uber Geek
+1 received by user: 1896


  Reply # 1649485 11-Oct-2016 21:28
Send private message

Geektastic:

 

This particular interpretation is very odd

 

 

 

"Are Dropbox Business customers also charged GST?

 

No. This tax only applies to individual customers in New Zealand (as opposed to businesses). For Dropbox, this means that only customers with Dropbox Pro subscriptions will see GST. It does not apply to subscriptions on a Dropbox Business plan."

 

 

 

So what happens if you are a business, using the Pro plan?

 

 

 

 

That is very odd. I am wondering if Dropbox are correct on this. Businesses also have to pay GST, just like Personal customers. The difference is that businesses can claim back the GST from the IRD. SO I wonder if Dropbox's accountants have misinterpreted NZ GST rules, as they should still have to pay that GST to the government from NZ businesses, in order for te IRD to provide the refund to businesses..


1630 posts

Uber Geek
+1 received by user: 277

Subscriber

  Reply # 1649492 11-Oct-2016 21:41
Send private message

 

 

Amazon AWS are doing the same.  You put your business GST number on your account and they will not charge GST.  Also to claim back GST the invoice must include a GST number, I suspect the invoices dont and will not, hence claiming is impossible, and the reason they wont charge you it in the first place.


12133 posts

Uber Geek
+1 received by user: 3947

Trusted
Lifetime subscriber

  Reply # 1649520 11-Oct-2016 23:10
One person supports this post
Send private message

Frankly I am amazed that they did not all just tell the government to poke it.

 

Even a professor at Auckland University was quoted as saying the government had not a hope in hell of actually enforcing this sort of tax.






12133 posts

Uber Geek
+1 received by user: 3947

Trusted
Lifetime subscriber

  Reply # 1649522 11-Oct-2016 23:10
Send private message

itxtme:

 

 

 

Amazon AWS are doing the same.  You put your business GST number on your account and they will not charge GST.  Also to claim back GST the invoice must include a GST number, I suspect the invoices dont and will not, hence claiming is impossible, and the reason they wont charge you it in the first place.

 

 

 

 

Yes I have done it with Adobe and someone else (forget who).

 

However, Dropbox do not appear to be offering that option.






14446 posts

Uber Geek
+1 received by user: 1896


  Reply # 1649524 11-Oct-2016 23:20
Send private message

So is the price to business customers the amount it would be if GST wasn't added. eg Will businesses be paying less than regular Consumers?

 

 I also would think that these overseas companies would need a GST number in order to pay that money to the IRD. I wonder if it has anything to do with their invoicing not being able to satisfy the IRDs GST invoicing requirements. I know first hand that Paypals invoices that it generates don't meet the IRD requirements, as they don't have the word 'Tax' invoice, on them, which is one of the requirements.


12133 posts

Uber Geek
+1 received by user: 3947

Trusted
Lifetime subscriber

  Reply # 1649948 12-Oct-2016 20:36
Send private message

This is Dropbox's response:

 

 

 

Dropbox is legally obligated to pay tax on some customer transactions. As of October 2016, New Zealand is requiring Foreign Digital Service Providers to apply a 15% goods and services tax (GST) on e-services to New Zealand customers.

 

As a Foreign Digital Service Provider, Dropbox is legally obligated to pay tax on customer transactions in that country.

 

Unfortunately, we are unable to exclude GST from your payment. However, you may use your invoice to claim tax back from your tax authorities where applicable.

 

You will see the tax as a line item on your billing invoices and receipts.
You can see the GST charge by viewing your transaction history:

 

 

 

Please note that there will be two links - one for your receipt and one for your invoice. If you'd like to see an invoice or receipt for a specific transaction, click on the respective links for that payment entry.






 1 | 2
View this topic in a long page with up to 500 replies per page Create new topic



Twitter »

Follow us to receive Twitter updates when new discussions are posted in our forums:



Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:



Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:



Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.



Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.