Government will start adding GST to mobile roaming charges.

Forums › Travel (planes, train, cruise) › Government will start adding GST to mobile roaming charges.

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Smpl Mnmlst
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#2242422 21-May-2019 15:32

Rikkitic:
Steamroller politics. Flatten every real and perceived GST loophole, however minuscule the return, and maybe the retail sector will finally stop whinging.

Yep - and it would be interesting to see how much revenue it will actually collect versus the cost of collection and enforcement.

Sometimes I just sit and think. Other times I just sit.

KrazyKid

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#2242426 21-May-2019 15:44

Surely enforcement is the easiest thing in the world. There are only 3 main networks plus a handful on virtual players (skinny, warehouse)

I assume I already pay GST on overseas toll calls - and surely they are very similar, A good or service purchased from a NZ provider that allows me to export my voice.

jamesrt

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#2242427 21-May-2019 15:45

eracode: Yep - and it would be interesting to see how much revenue it will actually collect versus the cost of collection and enforcement.

You want the politicians to actually perform due diligence on their decision making?

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#2242434 21-May-2019 15:52

I am certain if they could find a way to tax free stuff or food you grow yourself they would

Here is a crazy notion, lets give peace a chance.

sbiddle

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#2242440 21-May-2019 15:58

KrazyKid:

Surely enforcement is the easiest thing in the world. There are only 3 main networks plus a handful on virtual players (skinny, warehouse)

I assume I already pay GST on overseas toll calls - and surely they are very similar, A good or service purchased from a NZ provider that allows me to export my voice.

You pay GST on a call to overseas from NZ because it's a NZ consumed service or product.

Maybe we could all start being pedantic and asking for a GST refund for calls, SMS messages and data used airside at an international airport in NZ which is technically a customs controlled area and GST should not apply.

Roaming has always been zero rated because the product/service has been consumed outside NZ.

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#2242458 21-May-2019 16:38

I always use a local country SIM when travelling specifically to avoid the exhorbitant roaming charges that I'd otherwise incur. I sign into my Google account and all my contacts are instantly available to me. Those that need to know get an SMS advising of my temporary number - everyone else can wait until I get home.

This is tax extension is something that's being driven by IRD. While it's being supported by Labour, if National were in power it'd be supported by them too, so trying to turn this into a "boo, Labour sucks" style conversation is a little moronic - apply the sentiment to all politicians.

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afe66

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#2242524 21-May-2019 17:38

Meh,
I always assumed I was paying gst on it anyway.

The billing arangement is through my nz account, so gst would be added anyway.

Someone above suggested that return airtickets dont have gst on them either which surprised me ?

Is that true?

A.

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#2242543 21-May-2019 18:09

afe66: Meh,
I always assumed I was paying gst on it anyway.

The billing arangement is through my nz account, so gst would be added anyway.

Someone above suggested that return airtickets dont have gst on them either which surprised me ?

Is that true?

A.

The roaming charge are GST exempt on your bill.

International airfares do not and never have been eligible for GST since the product/service is not consumed within NZ.

afe66

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#2242574 21-May-2019 18:17

Interesting about the international fares. When does the not being consumed in nz start though? When we leave our economic zone or once we clear customs and enter tha land of duty free ?

My impression otherwise is still one that this seems a mountain out of a mole hill. So I'll pay 15% on $5 per day roaming.

sbiddle

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#2242575 21-May-2019 18:20

afe66: Interesting about the international fares.

My impression otherwise is still one that this seems a mountain out of a mole hill. So I'll pay 15% on $5 per day roaming.

It's the precedent.

If roaming is charged GST why is it not charged on airfares? Why isn't travel insurance? Neither of these products currently incur GST and I don't see how they're any different.

old3eyes

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#2242579 21-May-2019 18:35

sbiddle:
afe66: Meh,
I always assumed I was paying gst on it anyway.

The billing arangement is through my nz account, so gst would be added anyway.

Someone above suggested that return airtickets dont have gst on them either which surprised me ?

Is that true?

A.

The roaming charge are GST exempt on your bill.

International airfares do not and never have been eligible for GST since the product/service is not consumed within NZ.

On post pay yes but prepay you pay GST on roaming when you Topup the account.

Regards,

Old3eyes

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richms

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#2242609 21-May-2019 19:48

old3eyes:

On post pay yes but prepay you pay GST on roaming when you Topup the account.

You dont pay GST on topups. That oversight was fixed a looooooooong time ago. That is why if you use prepay for a GST registered business you have to request an invoice for services used.

No vouchers or prepaid items have GST on them as they are neither good or service. They are stored value.

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old3eyes

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#2243123 22-May-2019 13:46

richms:

old3eyes:

On post pay yes but prepay you pay GST on roaming when you Topup the account.

You dont pay GST on topups. That oversight was fixed a looooooooong time ago. That is why if you use prepay for a GST registered business you have to request an invoice for services used.

No vouchers or prepaid items have GST on them as they are neither good or service. They are stored value.

I beg to differ. Here is my last Topup receipt from Skinny and it clearly shows $2.61 GST content of the topup.

Regards,

Old3eyes

Behodar

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#2243131 22-May-2019 14:10

Good eye! I roamed recently so I've emailed Skinny, explained the problem, and asked for a refund of the GST. Let's get the popcorn out...

richms

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#2243325 22-May-2019 19:58

old3eyes:

I beg to differ. Here is my last Topup receipt from Skinny and it clearly shows $2.61 GST content of the topup.

That's weird. They shouldnt be doing that since its chargable when consumed. Last time I had to get a topup in store which was about a year ago, the reciept had the correct GST for only the rest of the groceries. That was a 2degrees one tho. Havent had to buy one since then or on the other networks to compare.

Richard rich.ms

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