'Netflix Tax' To Take Effect From October

Publish Date
Thursday, 12 May 2016, 6:43PM

You're going to have to fork out a little extra for e-books, music, movies and television if you're getting it online, as the so-called "Netflix tax" is set to take effect from October.

Physical goods bought online already incur a GST charge, but the new tax will affect things like e-books, music and video downloads, and streaming services like Netflix.

As it is, the Government is missing out on $180 million a year by not collecting GST on online purchases, including $40 million from shopping on iTunes, Netflix, Spotify and other online services.

Deloitte tax specialist Allan Bullot has said the law is unlikely to have a major effect on New Zealand consumers.

"For the men and women on the street, they might be paying a little bit more but it won't really affect them," he said.

NZ Herald

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