In 2023, the New Zealand Inland Revenue announced new reporting obligations for digital platforms, effective in 2024, based on the OECD Model Rules for Reporting by Platform Operators in the Sharing and Gig Economy. These rules require digital platforms in New Zealand to collect and report data on sellers receiving fees for specified services. With the reporting deadline approaching (February 7, 2025) it is crucial for these platforms to ensure the accuracy of the collected information and comply with the new regulations.
New Zealand Digital Platform Reporting: Key Details for Early 2025
Public
Other countries
Author: Ivana Picajkić
Category:
Fiscal subject related
General information
Views:
99
Content accuracy validation date:
05.12.2024
Content accuracy validation time:
08:33h
In 2023, the New Zealand Inland Revenue announced that starting in 2024, new reporting obligations for digital platforms will be implemented based on the OECD Model Rules for Reporting by Platform Operators concerning Sellers in the Sharing and Gig Economy. These rules require digital platforms based in New Zealand to collect and report data on sellers who receive fees for specified services offered through their platforms.
The main elements of the New Reporting Requirements are as follows:
- Scope of Services: The in-scope services include renting commercial and short-term accommodations, as well as personal services such as ride-sharing, food delivery, and graphic design.
- Data Collection: Digital platform operators must gather information about the services provided by sellers and the revenue generated through these platforms.
- Reporting Deadline: The first annual reports under these new requirements are due by February 7, 2025.
Digital platform operators that fail to collect and report the required information may face penalties of NZD 300 (approximately 176.36 USD) per instance of non-compliance, with a maximum penalty of NZD 10,000 (approximately 5,878.80 USD) per reporting year.
Additional penalties may apply for not exercising reasonable care regarding data collection, starting at NZD 20,000 (approximately 11,757.60 USD) for the first breach and escalating to NZD 100,000 (approximately 58,788.00 USD) for repeated violations.
As this is the first year that resident digital platform operators must adhere to these new rules, they need to prepare their reports diligently to avoid penalties. With the reporting deadline approaching, these platforms must ensure the accuracy of the collected information and comply with the new regulations.
Other news from Other countries
Is TikTok Shop subject to taxation in Indonesia?
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
TikTok Shop has become a popular marketplace in Indonesia, providing sellers with effective marketing opportunities. However, as its use grows, it’s essential for sellers to understand their tax obligations. The TikTok Shop Tax refers to the general tax responsibilities for transactions on the platform, which are governed by existing e-commerce regulations in Indonesia. Sales on TikTok Shop are ta... Read more
Ireland Prepares for Electronic Invoicing and VAT Reporting
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
Ireland plans to modernize its invoicing and VAT reporting systems, focusing on mandatory electronic invoicing for intra-community transactions, standardized digital reporting, and real-time VAT reporting through Continuous Transaction Controls (CTC). A 2023 public consultation gathered feedback, with a report forthcoming. While electronic invoicing is currently optional, the proposed changes aim... Read more
Voluntary e-invoicing soon to be possible across China
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
China’s State Taxation Administration (STA) has announced the nationwide rollout of optional digital electronic invoices starting December 2024, granting them the same legal validity as paper invoices. Covering various categories like VAT invoices and transport tickets, these digital invoices will feature unique 20-digit identification numbers and essential transaction details. The State Taxation... Read more
Finance Minister in Indonesia Confirms VAT Increase to 12% Effective January 1, 2025
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
The Finance Minister has confirmed that the value-added tax (VAT) in Indonesia will increase from 11% to 12%, effective January 1, 2025. This is part of the Tax Harmonisation Law of 2021, which outlines a two-stage VAT rise. Despite facing public criticism regarding potential price impacts, the Minister defended the necessity of this increase The Finance Minister has officially confirmed that the... Read more
Philippines Implements 12% VAT on Non-Resident Digital Service Providers Starting June 2025
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
In October 2024, the President signed Senate Bill 2528, which introduces a 12% value-added tax (VAT) on non-resident digital service providers (DSPs) in the Philippines, effective by June 2025. The Bureau of Internal Revenue (BIR) stated that non-resident DSPs will not need local tax representatives for VAT compliance but can appoint a local third-party service provider for administrative tasks. T... Read more
Reminder: South Africa released draft bill with proposed changes across various tax laws
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
The South African National Treasury released the draft Taxation Laws Amendment Bill (B16-2024) on October 30, 2024, proposing significant changes to various tax laws. Following the release, a public comment period will allow stakeholders to provide feedback on the proposed amendments. The National Treasury will consider these comments and may revise the draft before it is formally introduced in Pa... Read more