GST in New Zealand is designed to be a broad-based system with few exemptions, such as for rents collected on residential rental properties, donations, precious metals and financial services.
GST was introduced on 1 October 1986 by the Minister of Finance, Roger Douglas, at a rate of 10% on goods and services, during a series of controversial economic reforms undertaken by the Fourth Labour Government known as Rogernomics.
Businesses exporting goods and services from New Zealand are entitled to "zero-rate" their products: effectively, they charge GST at 0%.
Since that date, a GST of 15% (dubbed the 'Netflix Tax'[11][12]) is applied to all supplies from offshore digital service suppliers to New Zealand-based consumers.
[13] It is the supplier's responsibility to apply, collect and remit the new GST to New Zealand's Inland Revenue Department.
The general taxation of digital goods and services has become more common internationally since the OECD released its long-awaited BEPS report in October 2015.