Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Bill

  • enacted
66 New sections 60C and 60D inserted (Electronic marketplaces)

After section 60B, insert:

60C Electronic marketplaces

(1)

Subsection (2) applies when—

(a)

a supply of remote services is made through an electronic marketplace; and

(b)

the marketplace is operated by a non-resident person; and

(c)

the supply is made to a person resident in New Zealand.

(2)

The operator of the marketplace is treated as making the supply in the course or furtherance of a taxable activity. But this subsection does not apply if—

(a)

the documentation provided to the recipient identifies the supply as made by the underlying supplier and not the marketplace; and

(b)

the underlying supplier and the operator of the marketplace have agreed in a document signed by them that the supplier is liable for the payment of tax; and

(c)

the electronic marketplace does not—

(i)

authorise the charge to the recipient; or

(ii)

authorise the delivery of the supply to the recipient; or

(iii)

set the terms and conditions under which the supply is made.

(3)

If, in relation to a single supply of remote services, more than 1 operator of an electronic marketplace is liable for tax on the supply, the first operator that authorises a charge or receives consideration for the supply is treated as making the supply. If no operator exists that meets this requirement, the first operator that authorises delivery of the supply is treated as making the supply.

(4)

This section overrides section 60(1).

60D Approved marketplaces

(1)

This section applies when

(a)

a supply of remote services is made through a marketplace other than an electronic marketplace; and

(b)

the marketplace is operated by a non-resident person; and

(c)

the supply is made to a person resident in New Zealand.

(2)

On application by the operator of the marketplace, the Commissioner may agree to treat the operator, and not the underlying supplier, as making the supply in the course or furtherance of a taxable activity.

(3)

In the exercise of the discretion referred to in subsection (2), the Commissioner may take into account the following:

(a)

whether the marketplace is best placed to determine whether the recipient of the supply of remote services

(i)

is resident in New Zealand:

(ii)

is a registered person:

(b)

whether the number of underlying suppliers to the marketplace means that return requirements are better satisfied by the marketplace rather than the individual underlying suppliers.

(4)

This section overrides section 60(1).