iTunes NZ, GST & Tax

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AnfieldBoy

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Topic # 151022 11-Aug-2014 13:24

Hi, just doing a assignment for uni.

Does anyone have any information on whether or not iTunesNZ pays GST & tax in NZ?

It certainly gathers GST, but considering the iTunes NZ store is based in Sydney do they actually pay GST to the NZ govt? And do they pay corporate tax?

Maybe not a tech question, but certainly a tech subject.

Interested to hear peoples opinions on this.
A/B

wellygary

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Reply # 1106480 11-Aug-2014 14:15

You can't collect GST without passing it on,

Apple have a resigistered subsiduary in NZ that the finances pass through

Their most recent financials are here, ( they must file them as they are a company with majority overseas owned ( in this case OZ)

http://www.business.govt.nz/companies/app/service/services/documents/20DFFFA2AF2565B1F0D1EB349F427621

AnfieldBoy

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Reply # 1106489 11-Aug-2014 14:35

Thank you, I wonder if that statement also includes iTunes NZ or just Apple hardware.

steve98

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Reply # 1106570 11-Aug-2014 15:49

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From what I recall, the NZ itunes is run as an Australian company and no GST is collected or passed on. You'll notice their receipts for apps / music etc do not say "GST Invoice", do not include a GST number and do not break down what component of the total is GST and there is just a vague statement along the lines of "Apple charges GST where applicable" etc.

richms

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Reply # 1106625 11-Aug-2014 17:26

No GST when I last had to try to deal with accounts at work about a purchase.

Richard rich.ms

mattwnz

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Reply # 1106639 11-Aug-2014 17:43

steve98: From what I recall, the NZ itunes is run as an Australian company and no GST is collected or passed on. You'll notice their receipts for apps / music etc do not say "GST Invoice", do not include a GST number and do not break down what component of the total is GST and there is just a vague statement along the lines of "Apple charges GST where applicable" etc.

I had an issue several years ago where I purchased quicktime, and it was invoiced from Apple Austalia, even though it was purhcased via their their NZ site. They infact charged me GST becuase I had a NZ address, but the GST was 10%, which was Australias gst figure at the time. So when filling in my GST return, it didn't add up. Maybe they though NZ was part of Australia. I enquired about this, and after a huge amount of hassle, they eventually refunded me the GST, as it never should have been charged in the first place. Maybe the itunes store is different, but I presume the apple online store for things such as laptops, charges NZ GST, otherwise businesses would have problems claiming back the GST on purchases. Otherwise the GST would be charged at the border.

Behodar

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Reply # 1106649 11-Aug-2014 18:20

mattwnz: I had an issue several years ago where I purchased quicktime, and it was invoiced from Apple Austalia, even though it was purhcased via their their NZ site.

Hah, I remember going through that whole rigmarole, although in the end I gave up. I've subsequently had some freebies from Apple so I came out ahead in the end :)

mattwnz

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Reply # 1106664 11-Aug-2014 18:50

Behodar:
mattwnz: I had an issue several years ago where I purchased quicktime, and it was invoiced from Apple Austalia, even though it was purhcased via their their NZ site.

Hah, I remember going through that whole rigmarole, although in the end I gave up. I've subsequently had some freebies from Apple so I came out ahead in the end :)

Yes, dealing with Australian operated companies when you are contacting them from NZ can be a PITA. They don't seem to have the same high level of customer service of many NZ companies.

AnfieldBoy

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Reply # 1106716 11-Aug-2014 20:45

Thank you for your replys.

Looks like they have a trading company for sales of hardware which is registered in NZ, collects GST and pays GST.

However there is no sign of GST on iTunes music, movies & apps which leads me to think they are not paying GST. and not paying NRWT. the payment is possibly funnelled to Australia or to Singapore, either way anyone wanting to take on iTunes locally will have a hard time matching them for price.

Lots of NZ dollars going overseas again.