Originally Posted by
belgarion
From the article elZ posted above:
This is a global problem requiring a global solution that might involve each country taxing everything sold on the internet in the same way that they tax ordinary consumption. If Labour can suggest a practical way to levy GST on internet sales, retailers would be grateful.
Amazon made $46.5 million in sales to New Zealand in 2012 and paid $1.6 million in tax to this country. Google made the best part of $140 million from New Zealand advertisers that year and paid a paltry $165,000 tax.
"Aggressive avoidance", as this is called, deserves an aggressive response. It is a mission Labour should vigorously pursue in the national interest.
Having done a few global e-commerce sites for NZ companies and having to deal with the tax bollocks for the US states (each has their own set of "sales tax" rules) I really can't see the problem with forcing every offshore site to calculate and pay GST on purchases made from NZ. GST is after all a consumption tax and if its being .
If Labour can suggest a practical way to levy GST on internet sales, retailers would be grateful.