On May 1, 2018, the New Zealand government announced a consultation to require foreign retailers carrying on electronic commerce to levy a sales tax on products worth $360 or less.
Maryse Janelle, Tax Specialist and Partner at Raymond Chabot Grant Thornton, discussed this project in relation to a similar announcement by the Quebec government in its recent budget.
Discussing the governments’ possibility of recovering the taxes to be collected by foreign entities, Ms. Janelle explained about these projects that: “They entail certain challenges for recovering these amounts when businesses choose not to comply. However, it’s certain that where the European Community and G20 are concerned, the trend is to increase the transfer of information. The focus is on electronic transactions. I am therefore led to believe that eventually there will be more possibilities for the jurisdictions to recover those amounts.”
17 May 2018 | Written by :