I think it's also to try to push people to Creative Cloud; it's actually slightly cheaper here than in the US.

Adobe's site explicitly says "No GST payable" (which makes sense, being that it's run from overseas and isn't even charged in NZD). If that's not true, then I sense false advertising!

Benoire:

 

In some cases, the price difference is to do with how much the market can bare, e.g. in Russia there is generally considered to be large amounts of pirating so the companies charge less to ensure people are incentivised to purchase legal versions; also works with how much people earn...In some countries, software is priced at a point that makes it affordable for people... Which is why some games are bought using VPNs to Russian and brazil for example as they're cheaper due to overall salaries.

 

Or, to put it another way, the make adequate profits in Russia and Brazil, and even bigger profits in countries where people are cowed into accepting the DMCA and so on, and where there's a larger middle class.

frankv:

 

Or, to put it another way, the make adequate profits in Russia and Brazil, and even bigger profits in countries where people are cowed into accepting the DMCA and so on, and where there's a larger middle class.

 

 

No, that may sometimes be the case for some games from the bigger publishers, but it's not the rule.  You have to realise that gaming companies don't pay dividends, I know - I have shares in a profitable private one.  What is earned goes back into future games.  Game designers I've talked to continually worked under the constraints of what can be done within the deadline, and even then it slips.  All profits are a bonus.  There are no "we bilked the New Zealanders royally" parties with chocolate fountains and champagne sud dance offs.  They charge what people will buy at, and the money goes to a good cause (if you like what they make).

If there were come magic event where we all paid the lowest and the money wasn't there, you'd see lower quality games and less of the ones you'd like.

rmt38:

frankv:

Or, to put it another way, the make adequate profits in Russia and Brazil, and even bigger profits in countries where people are cowed into accepting the DMCA and so on, and where there's a larger middle class.

 

No, that may sometimes be the case for some games from the bigger publishers, but it's not the rule.  You have to realise that gaming companies don't pay dividends, I know - I have shares in a profitable private one.  What is earned goes back into future games.  Game designers I've talked to continually worked under the constraints of what can be done within the deadline, and even then it slips.  All profits are a bonus.  There are no "we bilked the New Zealanders royally" parties with chocolate fountains and champagne sud dance offs.  They charge what people will buy at, and the money goes to a good cause (if you like what they make).

If there were come magic event where we all paid the lowest and the money wasn't there, you'd see lower quality games and less of the ones you'd like.

 

The problem I have with Adobe Creative Cloud is that the price has effectively doubled within 3 years.

In September 2013, Adobe said it would be cheaper to pay a monthly subscription than pay $1000s to upgrade to each new release.  I used to hold off releases so I only upgraded every 2-3 years, but at AUD$30/mo (NZD$33/mo) it seemed reasonable.

Since then there have been various price hikes, increases in 6 countries only to "offset fluctuations in foreign exchange rate", and now NZ GST.  It now (from 1 Oct) costs AUD$50 + NZ GST ~= NZD$70/mo.

You can no longer buy a licence in perpetuity, so the monthly sub is the only option now.

I tried complaining to Adobe but so far have just got answers cut and pasted from their website.

jayjer8:

 

The problem I have with Adobe Creative Cloud is that the price has effectively doubled within 3 years.

 

In September 2013, Adobe said it would be cheaper to pay a monthly subscription than pay $1000s to upgrade to each new release.  I used to hold off releases so I only upgraded every 2-3 years, but at AUD$30/mo (NZD$33/mo) it seemed reasonable.

 

Since then there have been various price hikes, increases in 6 countries only to "offset fluctuations in foreign exchange rate", and now NZ GST.  It now (from 1 Oct) costs AUD$50 + NZ GST ~= NZD$70/mo.

 

You can no longer buy a licence in perpetuity, so the monthly sub is the only option now.

 

I tried complaining to Adobe but so far have just got answers cut and pasted from their website.

 

The same subscription in the US is $49 USD plus applicable sales tax. I wouldn't be complaining about that if I were you.

I would, of course, complain that they process payments using an offshore processor resulting in a ~3% offshore transaction surcharge, then GST slugged on top.

wsnz:

 

The reason why most imported services haven't traditionally attracted GST, is because when GST was introduced in 1986 (almost exactly one year after the flux capacitor was first tested in a production environment) the low volume of imported services meant that compliance & administrative costs would have exceed revenue generated.  The Labour government of the time made a conscious decision not to pursue enforcement of taxation on such services.

 

Contrasted with the situation today, Governments world-wide are missing out on what they see as valuable taxation revenue streams as cross border service transactions continue to increase at a rapid pace. Of course the Government narrative often applies a euphemism that it is not about revenue generation, but rather stemming future revenue losses.

 

There's also the issue of fairness to service providers which are based in NZ. Of course there are always going to be differences due to differing (non GST) tax treatments, regulations & standards that must be complied with, labour costs etc between different countries but there's no reason a broad based consumption tax that is VAT/GST shouldn't be charged on services which are "consumed" locally when it can be done effectively. (We get the same issue for non service imports but there there's the additional complication of the high administrative cost that others have mentioned and of course also issues like differing shipping costs etc.)

And this is one area where "stemming future revenue losses" does come up. Ultimately as we've seen all over, companies even ones you may think of as NZ ones may very well set up structures enabling them to avoid having to collect GST if it makes financial sense and the law allows it.

And yeah, just because I recognise the current system is flawed and unfair and am willing to pay the extra tax when it's fixed doesn't mean I like paying tax. I just want a system that isn't quite as broken as the current one. Both to avoid future tax increases and also getting back to the earlier point, it doesn't make sense to keep a system which unfairly penalises NZ service providers when it's starting to have a big effect and a better system can be implemented at relatively low cost/risk.

Just got this email from Google, looks like they wont be charging GST..

 

Hello, Google for Work will not be assessing Goods and Services Tax on your account beginning October 1. Since the announcement of the new GST rules on remote services which comes into effect October 1, Google has been working closely with the local tax authorities to ensure it complies with the requirements of the GST law and charges GST on Google products required to be charged under the law.

 

After receiving confirmation from the local tax authorities, Google is not required to charge New Zealand GST on Google for Work products. Please disregard any previous email you may have received informing you of the application of the Goods and Services Tax on Google for Work products. Google can’t advise you on tax matters, so please contact your tax adviser for any questions regarding this change.

 

The Google Payments Team

 

Just got the same email as Nas

Just got an e-mail from Netflix, GST being added effective 30 October, $18.49 for Netflix now

DjShadow:

 

Just got an e-mail from Netflix, GST being added effective 30 October, $18.49 for Netflix now

 

Yup, I didn't get an email, but the website has updated

DjShadow:

 

Just got an e-mail from Netflix, GST being added effective 30 October, $18.49 for Netflix now

 

That's the opposite  to what this says Netflix not raising prices with GST change, but others are