New Zealand wants to update its tax rules to meet the demands of the gig economy. A new document includes an intriguing possibility: will authorities lower the GST threshold to include more gig economy workers?
New economy, new tax rules
New Zealand has released a discussion document on “The role of digital platforms in the taxation of the gig and sharing economy”.
The discussion document points out that the gig and sharing economy raises complex questions about income tax and information sharing.
The document also emphasises the need to apply GST fairly across the New Zealand economy and ensure a broad GST revenue base. According to the document, that could mean lowering the GST threshold. (To understand why the VAT/GST threshold is so important, see our guide to VAT compliance requirements.)
An easier way to meet your global VAT/GST obligations
The New Zealand proposal is still at the discussion phase. However, the gig economy and the central importance of e-commerce and digital services have clearly changed the way we do business. In response, global authorities are taking steps to update VAT/GST rules to meet the challenges of a digital economy.
The digital economy’s VAT rules are constantly changing. Your business needs a flexible VAT compliance solution, supported by VAT experts with a truly global perspective.
VAT IT’s powerful VAT compliance technology makes meeting your VAT obligations fast, simple and cost-effective. As the global VAT compliance and recovery specialist, VAT IT provides an end-to-end solution that helps you navigate even the most complex regulatory questions, while optimising compliance. Get in touch with VAT IT to see how we can help your business.