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Goods and Services Tax Act 1985

Imposition of tax

8B: Remote services: determining residence of recipients

You could also call this:

"How online sellers decide if you live in New Zealand to charge GST"

Illustration for Goods and Services Tax Act 1985

When you buy things online, the supplier needs to know if you live in New Zealand. This is so they can work out if they need to charge you GST. The supplier looks at things like your billing address and the internet address of the device you use.

If two of these things say you live in New Zealand, the supplier will treat you as a New Zealand resident. They look at things like your bank details, the address of your landline phone, and other information that is relevant to the purchase. The supplier might also use other methods to work out where you live, like the mobile country code of your phone.

In some cases, the supplier might have information that says you live in New Zealand and also information that says you live somewhere else. In this case, they have to choose the information that is more reliable. The Commissioner can also help the supplier work out where you live, or agree on a different method to use.

The Commissioner considers things like what is being supplied and how much information the supplier has about you. They might look at whether the supply is a one-off or if you are buying things from the supplier regularly. The Commissioner can also look at the information the supplier has about your residence.

There are also special rules that apply in certain situations, like when you are buying remote services and you are registered for GST. In these cases, the supplier has to follow specific rules to work out if they need to charge you GST, as outlined in section 8(3)(c) and sections 11A(1)(j), 60C, and 60D.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6977053.

Topics:
Money and consumer rights > TaxesBusiness > Fair trading
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"How non-resident sellers check if you're a registered business when selling you something"

Part 2Imposition of tax

8BRemote services: determining residence of recipients

  1. Subsection (2) applies to determine—

  2. whether a supply is made in New Zealand under section 8(3)(c); or
    1. for the purposes of sections 10(14B), 11A(1)(j), 60(1AB), 60C, and 60D, when remote services are supplied to a person resident in New Zealand; or
      1. for the purposes of section 11A(1)(k) to (m), when remote services are supplied to a person who is outside New Zealand at the time the services are performed.

        1. A supplier must treat the recipient of the supply as a person resident in New Zealand if 2 of the following items are non-contradictory and support the conclusion that the person is resident in New Zealand:

        2. the person’s billing address:
          1. the internet protocol address of the device used by the person or another geolocation method:
            1. the person’s bank details, including the account the person uses for payment or the billing address held by the bank:
              1. the mobile country code of the international mobile subscriber identity stored on the subscriber identity module card used by the person:
                1. the location of the person’s fixed land line through which the service is supplied to them:
                  1. other commercially relevant information.

                    1. For the purposes of subsection (2),—

                    2. if, in addition to having 2 non-contradictory items from the list in subsection (2) supporting residence in New Zealand, a supplier also has at least 2 non-contradictory items that support residence in a country other than New Zealand, the supplier must choose the evidence that is more reliable to determine a recipient’s residence:
                      1. the Commissioner may prescribe the use of another method to determine a recipient’s residence, or may agree with the supplier on the use of another method, if a supplier is unable to establish a recipient’s residence by 2 non-contradictory items from the list in subsection (2).

                        1. In prescribing or agreeing to the use of an alternative method under subsection (3)(b), the Commissioner may take into account the following:

                        2. the nature of the supply, including, for example,—
                          1. whether the supply is made in a low-value high-volume digital context:
                            1. whether the supply is a single instance or a supply made as part of a continuing relationship between the recipient and the supplier:
                            2. the availability to the supplier of information about the recipient’s residence.

                              1. Section 8BB(1B) applies to determine the treatment of a supply to a registered person of remote services described in section 8(3)(c) when section 8(4D) applies, and for the purposes of sections 11A(1)(j), 60C, and 60D.

                              2. Repealed

                              3. Repealed

                              4. Repealed
                              Notes
                              • Section 8B: inserted, on , by section 55 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
                              • Section 8B heading: amended, on , by section 11(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                              • Section 8B(1): replaced, on , by section 127(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
                              • Section 8B(5): amended, on , by section 127(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
                              • Section 8B(5): amended (with effect on 1 October 2016), on , by section 349(2)(a) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                              • Section 8B(5): amended (with effect on 1 October 2016), on , by section 349(2)(b) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                              • Section 8B(6): repealed, on , by section 11(4) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                              • Section 8B(7): repealed, on , by section 11(4) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                              • Section 8B(8): repealed, on , by section 11(4) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).