New Zealand considers revising GST on non-resident services
The New Zealand tax office has invited submissions on changes to the rules on zero-rating services provided to foreign, non-resident recipients.
Currently, as in Europe, the supply is zero rated for GST purposes based on the 1985 GST Act. However this creates problems for suppliers to individuals on long-term services or if the customer subsequently becomes a tax resident. The new consultation documents proposes to give new flexibilities where customers visit New Zealand or if customers subsequently move to New Zealand, the GST zero-rating is not reversed.
Opinions on the new proposals are invited prior to July 2013.