The latest New Zealand low value imported goods changes are another of many occurring globally in the e-commerce indirect taxes area. On December 5, 2018 the New Zealand government introduced into Parliament the Taxation Bill that is a landmark development proposing new rules that will require offshore sellers, from October 1, 2019, to register and account for Goods and Services Tax (‘‘GST’’) at 15 percent on supplies of low value imported goods (‘‘LVIGs’’) if sales to New Zealand private consumers in a 12-month period exceed NZ$60,000 ($41,380). The $60,000 threshold is the same GST registration threshold that applies to domestic businesses and offshore suppliers of cross-border remote services.
For detailed information please see the below link or the attached article from Eugen Trombitas, PwC NZ Partner and PwC Global E-commerce indirect taxes leader, published in Bloomberg International Tax News.
NZ GST article
Following years of changes in the indirect tax area, now also from direct tax side comes an EU proposal that will bring significant changes in the taxation of online businesses. Both the draft directive concerning long-term solution and the interim solution could bring radical changes for companies with a “significant digital presence”.
Please see PwC Newsletter for further detail
PwC Newsalert EUDTG
1 July 2017, supplies of things other than goods or real property made to an ‘Australian consumer’ will be connected with Australia and subject to GST. The Australian provisions are broader than some other jurisdictions and essentially anything other than goods or real property are caught, and if an entity’s GST turnover exceeds the registration turnover threshold of AUD 75,000, it would be required to register for GST in Australia. Non-resident suppliers will be able to access a limited and simplified GST registration, although they can also register under the full registration procedure.
Where supplies of inbound intangibles are made through an Electronic Distribution Platform (EDP), the GST liability on these supplies would shift to the operator of the EDP (i.e. generally, online marketplaces that act as intermediaries). The Australian Taxation Office (ATO) has released a draft Law Companion Guideline (LCG 2017/D4) dealing with the EDP provisions.
In addition, under proposals still before Parliament (the Treasury Laws Amendment (Goods and Services Tax (GST) Low Value Goods) Bill 2017), low-value goods (AUD 1,000 and under) supplied by overseas retailers to Australian consumers would become taxable supplies beginning 1 July 2017. The Bill was referred to the Senate Economics Legislation Committee which recommended that the implementation of the measures be delayed to 1 July 2018. The Bill is listed to be debated in Parliament in June 2017.
Please see the attached newsletter for further details.
As indicated at our recent B2C 2015 work group event in Brussels PwC recently conducted a “2015 Impact and Readiness Survey” for which we invited businesses from across all sectors (telecom, broadcasting and eservice providers) and all geographical regions.We launched this survey with the aim of gathering data on the impact of the EU 2015 VAT changes on affected businesses. The survey also testes how ready businesses feel to be able to deal with the imminent changes.
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On 21 June 2013, the European Council reached political agreement on implementing rules for taxing B2C telecommunications, broadcasting and electronically supplied services from 1 January 2015.
In this article, Sophie Claessens and Ine Lejeune give an overview of the new implementing provisions and what additional guidance can be expected from the Explanatory Notes that are currently being drafted by the European Commission.
Publisher/Publication: IBFD, International VAT Monitor, 2014 (Volume 25), No. 1; first published online on 16 January 2014.
The start of 2015 will bring the biggest single change to the EU VAT regime that telecom operators, broadcasters and others that provide eservices have seen in decades.
The legislation is expected to have a profound impact on e-services providers, particularly on their pricing and commercial strategy. As providers of these services take steps to adapt to the new legislation, the result will be either a sharp increase in the prices charged to many consumers or a cut in suppliers’ profit margins – neither of which is a desirable outcome.
In practice, companies based in the EU will be affected the most, as the rules change mostly for those suppliers. The changes will also affect non-EU suppliers. The legislation is expected to have a profound impact on eservices providers, particularly on their pricing and commercial strategy
Stephen Dale, Martin Blanche and Johnathan Davies provide an overview on the changes the new EU VAT rules will bring to telecom operators, broadcasters and other providers of eservices from 1 January 2015. Their article “EU: small change, big impact” (originally published in Tax planning international – Indirect taxes: Volume 11, Number 10, October 2013) focuses on possible outcomes for eservice providers.
For those of you who have missed our webcast of 22 August 2013 on the 2015 EU VAT changes to electronically supplied services: you can access its recording here.
We are pleased to present our new 2015 module on GlobalVATOnline (GVO), which has been launched ahead of the EU VAT change on 1 January 2015 when B2C supplies of telecommunications, broadcasting and electronic services made by EU based companies will change from being taxed where the supplier belongs to being taxed according to the VAT rates applicable where the customer is located or is normally resident.
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In April 2013 we have organized a workshop for our clients where we have presented the current and future ecommerce legislation in Switzerland, Europe and worldwide, discussed tax related trends among ecommerce businesses and tax authorities and presented our vies of the future cross-border tax and business implications for ecommerce. We have spent quite some time discussing how the ecommerce tax compliance will need to be modernized and automatized in order to meet the requirements of the ecommerce businesses of tomorrow and presented our vision on how to meet this goal of automated, scalable, seamless and affordable tax compliance service offering.
As a follow-up to the workshop we have prepared and publicized an article in the May 2013 edition of Tax Planning International: Indirect Taxes. For your convenience you can download its copy here.
For those of you who have missed our US webcast of 14 March 2013 on the 2015 EU VAT changes to electronically supplied services: you can access its recording here.
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