The discussion document is available at www.taxpolicy.ird.govt.nz.
The changes are aimed at reducing the extent to which GST impacts on the ability of non-resident businesses to consume goods and services in New Zealand.
The options include extending the current zero-rating of goods and services supplied to non-residents; an enhanced GST registration system for non-residents to make it easier for them to claim input tax; or a direct GST refund system.
The Government’s preferred option is an enhanced registration system, for compliance and administrative cost reasons. We agree, but there are number of design features that require further consideration.
The attached taxmail discusses this option in greater detail.
If you have any questions on the above, please speak to your usual KPMG advisor or contact: