As more businesses provide remote services to New Zealand, particularly from overseas, it's essential for both businesses and consumers to understand how Goods and Services Tax (GST) applies in these situations. This is especially true for digital services such as video conferencing platforms like Zoom or software subscriptions.
When is GST Charged?
Overseas businesses providing remote services to New Zealand are generally required to collect GST only when supplying these services directly to resident consumers. This means that if the service is being supplied to a business (Business to Business, or B2B), GST is not applied.
In other words, GST does not apply to transactions between businesses, but it does apply when the service is provided to an individual consumer residing in New Zealand.
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