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

309 posts

Ultimate Geek
+1 received by user: 32

Topic # 196122 20-May-2016 09:50
Send private message

We use Xero, and before I reach out to our accountant (as can be a delay), thought I would see if anyone here can clarify.


Got a client who lives in Aus, with Aus address, but I provide an IT service to them based in NZ (e.g. hosted on hardware in NZ), should I be charging this client GST, or would GST be zero-rated? (as their billing address is outside NZ). Or would all NZ based services be liable for GST?


A second client I do work for is more clear cut, as I provide an exported 'service' to them (e.g. develop code), and they use this service in AU, meaning GST is zero-rated, according to IRD site.


But I couldn't quite find the direct answer for the first client, based on IRD site.



Create new topic
443 posts

Ultimate Geek
+1 received by user: 102

  Reply # 1555997 20-May-2016 10:01
Send private message

I am no expert , but would asssume if they goods or servives are used in NZ they pay the GST here , our everyone would just get an overseas address to be billed to

21015 posts

Uber Geek
+1 received by user: 4155


  Reply # 1556007 20-May-2016 10:10
Send private message

I  dont pay VAT on my seedbox because I have a non EU billing address, but I expect that the "netflix tax" carryon will have something to say about it soon so accountant would be the best bet



Try Wrike: fast, easy, and efficient project collaboration software

309 posts

Ultimate Geek
+1 received by user: 32

  Reply # 1556017 20-May-2016 10:18
Send private message



I am no expert , but would asssume if they goods or servives are used in NZ they pay the GST here , our everyone would just get an overseas address to be billed to





This is what I expected. Will see if the accountant backs this up.

11171 posts

Uber Geek
+1 received by user: 3539


  Reply # 1556068 20-May-2016 10:57
Send private message

I had the reverse - paid fees to attend a trade event in Australia, billed by the Australian part of Tourism New Zealand in NZ dollars but had to pay Australian GST which we could not reclaim....

Hmm, what to write...
971 posts

Ultimate Geek
+1 received by user: 484

Lifetime subscriber

  Reply # 1556188 20-May-2016 12:33
Send private message

This is the reason you should never let your staff book their New Zealand accommodation through an offshore wont be able to claim the GST.. because they don't charge it


3904 posts

Uber Geek
+1 received by user: 649


  Reply # 1556513 20-May-2016 19:50
Send private message

I had to get some professional advice on this many years ago when I worked for a large domain registration and hosting company with an office in NZ.


If I recall correctly the tax advisor told me that the services would generally be deemed to have been 'consumed' within NZ jurisdiction and therefore GST was payable. Some customers disputed this and I was subsequently advised that we could apply to get a binding ruling from IRD to get the GST exempted for overseas based customers, however we didn't pursue this as it wasn't worth the cost or hassle.

2949 posts

Uber Geek
+1 received by user: 438


  Reply # 1556955 21-May-2016 19:37
Send private message

Depends what the service is. If it's SaaS, the answer is clear: GST is not applicable. If you're providing hosting services, it probably gets hairy.




"Software and other similar digital products imported over the internet are treated as services as the definition of "goods" in the GST Act explicitly excludes products that are "transmitted by a non resident to a resident by means of wire, cable, radio, optical or other electromagnetic system or by means of a similar technical system""


So it's definitely a service. And when the service is actually used overseas, GST isn't payable.







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:

News »

Umbrellar becomes Microsoft Cloud Solution Provider
Posted 22-May-2018 15:43

Three New Zealand projects shortlisted in IDC Asia Pacific Smart Cities Awards
Posted 22-May-2018 15:14

UpStarters - the New Zealand tech and innovation story
Posted 21-May-2018 09:55

Lightbox updates platform with new streaming options
Posted 17-May-2018 13:09

Norton Core router launches with high-performance, IoT security in New Zealand
Posted 16-May-2018 02:00

D-Link ANZ launches new 4G LTE Dual SIM M2M VPN Router
Posted 15-May-2018 19:30

New Panasonic LUMIX FT7 ideal for outdoor: waterproof, dustproof
Posted 15-May-2018 19:17

Ryanair Goes All-In on AWS
Posted 15-May-2018 19:14

Te Papa and EQC Minecraft Mod shakes up earthquake education
Posted 15-May-2018 19:12

Framing Facebook: It’s not about technology
Posted 14-May-2018 16:02

Vocus works with NZ Police and telcos to stop scam calls
Posted 12-May-2018 11:12

Vista Group signs Aeon Entertainment, largest cinema chain in Japan
Posted 11-May-2018 21:41

New Privacy Trust Mark certifies privacy and customer control
Posted 10-May-2018 14:16

New app FIXR connects vehicle owners to top Mechanics at best prices
Posted 10-May-2018 14:13

Nutanix Beam gives enterprises control of the cloud
Posted 10-May-2018 14:09

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.