"Netflix Tax" To Take Effect From October 1st

Consumers are going to have to fork out extra for e-books, music, movies and television online, as the so-called "Netflix tax" comes into effect from tomorrow.

Physical goods bought online already incur a GST charge, but the new tax will affect things like e-books, music and video downloads, and streaming services like Netflix.

Deloitte tax specialist Allan Bullot said the change was a good one for New Zealand and would bring it up to speed with the rest of the world.

"That's something where back in 1986 when [GST] came in, no one would have dreamed that you would be walking around with a phone in your pocket that you could download songs and movies on," Bullot said.

"If you had a walkman back then you were cool - so it's just a different world."

Read the full story at NZ Herald