The Amazon Tax... again (1 May, 2018)

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The Amazon Tax... again (1 May, 2018)

Postby aardvark_admin » Tue May 01, 2018 10:03 am

This column is archived at: https://aardvark.co.nz/daily/2018/0501.shtml

Are they really serious?

Do the government really not understand that simply requiring Amazon to add GST to its NZ sales will be but a drop in the ocean and place the myriad of other non-compliant offshore etailers at a significant price advantage when compared to the US giant?

How will our government force compliance on the raft of Sino-etailers who will say "thanks but no thanks" to Wellington's kind offer to make them unpaid tax-collectors on its behalf?

And what will the net return of this exercise be if, as appears to be the plan, all those imports which do not already have GST levied on them at source are then held until GST is paid? The warehousing, the cost of raising invoices, the cost of handling payments -- these things will almost certainly be a far greater cost than the revenues returned.

Are our politicians and their advisors really that stupid? (Rhetorical I know).
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Re: The Amazon Tax... again (1 May, 2018)

Postby goosemoose » Tue May 01, 2018 11:00 am

Great. Now I won't feel so bad about purchasing from overseas as GST is going to be paid. Yeah right!

In fact now that the retailers have got their way I will now, with a clear conscious, be able to purchase more from overseas. It's all a level playing field now that GST is being collected. Apparently. I also will be able to claim back some of this GST as some of my purchases are work related. IRD will be able to provide the GST numbers of these overseas retail giants so I can do this won't they?

Glad to see that Tilly Lloyd was a vocal supporter of this, as books was one of the things I did buy locally. I won't have to now. After all I am now paying my taxes.

Anyway won't this all be a bit moot when the TPP or whatever its called these days comes in. Can't have local taxes robbing global corporates can we. Anyway don't the neoliberals, economists, business leaders tell us the price of things is down to the free market and trade reforms etc etc. Oh, except when it effects them.
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Re: The Amazon Tax... again (1 May, 2018)

Postby latewings » Tue May 01, 2018 12:24 pm

http://www.radionz.co.nz/news/political/356351/govt-expects-75-percent-compliance-on-foreign-gst-it-cannot-police

So they know it's a waste of time. It's going to descend into mayhem as Customs will start holding up parcels at the border requesting proof GST has been levied on the item. What' happens then if the items are second hand from a private seller on ebay? Try telling some dim witted Customs drone GST does not apply.

I can only imagine that warehouse they'll need will be clogged with abandoned items very quickly.
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Re: The Amazon Tax... again (1 May, 2018)

Postby Perry » Tue May 01, 2018 1:06 pm

goosemoose wrote: IRD will be able to provide the GST numbers of these overseas retail giants so I can do this won't they?

I don't think it works that way.

The IRD will want you to provide a Tax Invoice as proof.

Then they'll send a drone Outer Mongolia to collect the GST that you paid to some online merchant domiciled in Ulan Bator.

And it they don't pay?

Image

I wouldn't be surprised if we see this sort of thing as just another snowball added to the gathering and / or impending avalanche of a global, one-world gummint.
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Re: The Amazon Tax... again (1 May, 2018)

Postby phill » Tue May 01, 2018 1:40 pm

the question i have to ask is whether they actually know how most sini e tailers work

ok dx and banggood are both major one store online sellers
but the biggest 2 ( in turn over ) are aliexpress and dhgate ... neither sell anything
both are money handlers ( escrow type )
they take a transaction cost from the 'shops ' that advertise on their sites ... they buy nothing ... they sell nothing ... they pack and post nothing ... they just handle money .. like a bank does .. try getting money from a bank for transferring it around
each has thousands of small stores on their sites so even if a transaction was for a thousand dollars each shop would be unlikely to go over the minimum yearly to register for gst collection .. indeed most are hobby stores setup as a small business people do after work and most would not come close to the total required with their total worldwide sales let alone just the nz ones ( where is that place ?? )

so it becomes voluntary for me to pay
do i cut a cheque for each shop i buy from .. thats 10 or so a week .. each totalling 15 cents - 1 dollar .. i can bundle up a months worth .. or even 3 months worth .. all carefully calculated .. and send them all off in one envelope
.. then buy another cheque book .. happiness will aid me ..
how much is the taxpayer going to fund my ~ $ 60 payment per 3 months max and 120 odd cheques to handle ... has to be a minimum handling of 3 hours total from opening the envelope to the final dot on the paperwork
it may just pay the workers time .. but come no where near the office space .. computer use .. benefits ... and employment overheads required to run it
( ,,,,,,,, ....... A E I O U use em sparingly theres probably not enough )
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Re: The Amazon Tax... again (1 May, 2018)

Postby JonL » Tue May 01, 2018 2:58 pm

The dunderheaded Aussie gov. is doing the same thing from July - GST on all overseas sales. Thank you very muck Gerry Harvey and the other clueless business leaders who blame the changing world of retailing and the drop in their incomes on people "stealing money from the gov. by not paying GST and putting them at a disadvantage.
Surprisingly, I buy a certain line of new items from NZ. Even with postage, and the Aus 10% GST added, it'll still be 15-20% cheaper than buying locally!
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Re: The Amazon Tax... again (1 May, 2018)

Postby phill » Wed May 02, 2018 12:37 pm

( ,,,,,,,, ....... A E I O U use em sparingly theres probably not enough )
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Re: The Amazon Tax... again (1 May, 2018)

Postby aardvark_admin » Wed May 02, 2018 12:50 pm

From the story linked by Phill (above)

He said the large companies' reputations would rely on their compliance.

"They do not like to be seen to be reneging on their tax obligations anywhere round the world so they do comply,"


Oh yeah, that's working for the government as it tries to tax profits from the the likes of Apple, Facebook. Vodafone, Starbucks and Google who engage in a number of legal but unethical moves to shift those profits out of NZ and thus avoid tax.

Wooden-heads rule!
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Bluff & BS?

Postby Perry » Wed May 02, 2018 1:47 pm

Here you have it?
However, tax specialist Mark Keating said this strikes me more as the government had to do something, and at least this is something so the government can claim they're at least trying to do something.
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Re: The Amazon Tax... again (1 May, 2018)

Postby Malcolm » Wed May 02, 2018 2:32 pm

Yes, feels very much like trying to throw a bone to the retail sector. Probably to offset something else in the budget.
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