New Zealanders will soon have to pay GST on international online services, such as ebooks, music and video downloads, after the government passed its so-called Netflix tax.
Netflix on a tablet Photo: 123RF
Revenue Minister Michael Woodhouse said the new Taxation Bill would allow the government to collect GST on the growing volume of international online sales.
Mr Woodhouse said New Zealand providers were at an unfair disadvantage because they must apply the 15 percent tax to their services - whereas overseas providers did not.
GST will be applied to foreign internet services, such as iTunes and Netflix, from October.