The Amazon tax (20 Nov, 2017)

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Re: The Amazon tax (20 Nov, 2017)

Postby aardvark_admin » Tue Nov 21, 2017 6:45 am

roygbiv wrote:So what if Mr Wong charges GST . . . . and keeps it. How can IRD recoup this, what power can they exert on an outfit in China. Can they force the banks or card companies to divert the GST component of such a transaction before it reaches Mr Wong, that is the only way that it can be applied and used. But that involves another party - the banks, and what is in it for them ?

This is an interesting situation... surely, if the IRD expects AliExpress to act as unpaid tax collectors on their behalf then what's wrong with expecting banks to do the same?

Or do banks somehow have some "special status" in the eyes of politicians -- because of the enormous power they have over the average Kiwi with his mortgage, credit card and other commitments?

One unfortunate (for the government) side-effect of getting the banks to just chuck GST on all overseas transactions is that it would encourage people to use alternative payment methods (such as bitcoin). There's also the problem that people on holiday overseas would find themselves paying GST on goods and services that were never provided in NZ and that's not the way that GST works.
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Re: The Amazon tax (20 Nov, 2017)

Postby Stevesub » Tue Nov 21, 2017 8:07 am

Exactly Bruce, when we live in OZ, we use our NZ credit and debit cards to live on because NZ is where most of our money is earned. We do not want to pay GST in both NZ and OZ while we are living there.
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