rmt38:

 

freitasm:

 

And so it begins. SKype (Microsoft, ironically) sent out this today:

 

 

New Zealand GST changes

 

In order to meet recent changes to New Zealand tax requirements, Skype will be required to include the Goods and Services Tax (GST) for customers in New Zealand.

 

 

 

I got this as well.  I don't feel good about it.  That's not to say I am against GST being charged, what makes me feel uncomfortable about it is that I suspect they are not also paying tax on their earnings on NZ business?  It seems to me like one should go hand in hand with the other.

 

If they are collecting GST from kiwis, then the government will get that money. Unless they are offsetting it against GST incurring supplies, which they are buying from NZ suppliers. But how many of these types of companies are buying supplies from NZ companies, not too many I suspect. But GST is really a tax on the consumer buying the service, not on the company itself. But whether the comapnies will get it right is another question. I once puchased some quicktime software from Apple, and was charged Australian GST. I asked why they had done this and asked for it to be refunded. They did do this eventually after a lot of hassle But I wondered if I hadn't asked for it to be refunded, whether they would have kept it, because they shouldn't have charged an Australian tax on a NZ conusmer.