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Old 05-01-2018, 08:54 PM
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Default It’s known as the Amazon Tax

New Zealand and Australia both have a “goods and services” tax know as GST. In Aus it is 10% on all items sold except housing and fresh food. In NZ it is 15% on everything except housing.

For many years brick and mortor retailers in both countries have been asking governments to impose GST on overseas internet sales. Both countries introduced a “Netflix” tax on online streaming services a few years ago. Australia’s Amazonian comes into effect in July. Yesterday the NZ government announced that overseas purchases from Amazon, E-Bay etc will require the selling or operating site to collect GST and forward it to them. If they refuse there are reciprocal tax collecting arrangements in force with governments all over the world.

Not that this will stop internet purchases at all. It is not just the price that makes internet shopping attractive. In fact postage can often double the price paid while internet currency conversions are, quite frankly, a rip off for the buyer.

Pay Pal, for example, always short changes the exchange rate by quite a bit. And for me to buy a US $49 vest from Gentlemenks Emporium costs another US$50 in shipping.

Often it is simply the fact that we cannot buy what we want here.
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