The Government is introducing further changes to GST in relation to remote services.

The newest changes relate to outbound roaming charges. That is, the phone charges you pay while using your New Zealand cell phone overseas. Under the proposed changes these fees will now be subject to GST. Technically, non-residents roaming in New Zealand would also no longer be subject to GST on their roaming charges.

This move further aligns our GST rules with the growing international trend to apply GST or VAT type taxes based on the residence of the consumer rather than the location of supply where the location of the supply is not particularly relevant. That is, where there is no significant difference based on where the supplier is located.

It is anticipated the GST treatment will be applied based on the country code of the SIM card used in the cell phone.