Hello all, I'm wondering, I'm running internet company in New Zealand, and I get large revenue from adsense. But my accountant advice I need to pay for GST ! The reason is the revenue include the New Zealand User clicks. But, My point is , My company Revenue is from Google Adsense in U.S. company, is Oversea business and Revenue, so it's no any New Zealand GST cost, Even My website get New Zealand User clicks. I also check google search, I get almost the same reply. NO GST cost in New Zealand. I give a post to ask all kindly friends if you are in New Zealand. Google Adsense Revenue Pay for GST at New Zealand ??? thanks very much
You handpicked and pay your accountant for professional advice but you're happy to ignore it on that basis that you reckon a bunch of strangers in other countries know better? I'd start by ringing the IRD and getting - in writing - their ruling on it. Should they ever decide to audit you I think you'll find their opinion is the only one that counts. Oh, and keep that letter from them forever... we got slammed with a $15k tax bill years ago because we hadn't filled out the right forms. We still had our letter to them requesting the forms and their letter back supplying the forms we did fill out. Their clerical error but if we hadn't been able to prove it we would have had to pay. Never lose sight of the fact that every year people commit suicide because of their IRD woes. I don't know how they make people's lives such a living hell. I do know you don't want to be one of them.
Hello buddy, Thanks your reply, are you in the NZ? I'm sorry, I dont full understand your reply meaning .... it's meaning pay GST or not to pay GST, IRD rule it ? It's even I do not get business in NZ ??? thanks
Yeah, sure I'm in NZ, you didn't get my avatar? How long have you lived down here? I'd call the IRD and ask for them to send you a written ruling on GST and adsense. Their number is 0800 227 774 I'm very surprised that your accountant didn't know though, pretty unprofessional.
Hello buddy, I just in NZ 2 weeks for my new business. Yes, it seems my accountant unprofessional for internet company job =( , So can you let me know. the GST and adsense details ? I need to pay for GST ? or NOT to pay GST ??? thanks very much thanks
My accountant, send a mail to IRD, to ask the details about GST and adsense, if pay the GST or NOT to pay the GST, hold the IRD reply mail . He said around 4 weeks for that done. I think that good idea, it's proof for GST pay or not to pay . =(
I dont get the concept of having to pay for GST for ad revenue. if someone clicks on an ad that was on your site, exactly what goods or services did your site provide? If anything, you are almost contracting out adspace to a US company, I hardly see how you are liable for income that they might have earnt on your behalf. in adsense, show me where it shows how much revenue came from "NZ"? How are you gonna pay GST on that? What if you have thousands of clicks from users in NZ, but are using US based proxies to surf the web, how can you work out the GST for those users? Makes no sense. I am Australian; for my accountant, when I see them, I will show all the revenue I earnt for the past 12 months, including any revenue from advertising sites, and will let them figure it all out, I would advise you to either do the same, or find another tax accountant, one that has experience with companies such as yours and is fully up to date on the law. (quote from: http://www.ird.govt.nz/gst/gst-registering/gst-about/) Its clear that there are exceptions to the GST, you just need to find a tax accountant that specialises in the industry that can get it RIGHT without guessing around.
Thanks buddy, So , it's PAY ? or not to PAY the GST with adsense earing in NZ ??? all other oversea ad company earning payemnt ? thanks
You sell ad space on your website. The payment terms are that you get paid per click rather than per impression. If the "business interest" that runs the website (sole trader, partnership, limited liability company or trust) is deemed to be a NZ business then it is obliged to comply with NZ tax law. If you want to get really fussy you probably could break down the clicks so that you only pay GST on local clicks and not on foreign (exported) clicks. Now, the OP isn't a NZ national and therefore may want to return home one day. If he fucks up, no matter if he's morally right, then the IRD can stop him leaving the country or arrest him on his return. Imagine if a parent was really sick, or a sibling was getting married, you'd want to be there right? Imagine if you couldn't because in 2013 you decided that you knew best and told your accountant that you weren't going to pay GST on your adsense income. Find an accountant who knows online business, get a ruling in writing from the IRD and do things properly.
thats exactly what I was saying. when i said this "Its clear that there are exceptions to the GST, you just need to find a tax accountant that specialises in the industry that can get it RIGHT without guessing around."