GST on Google Ad-Words
Previously for NZ businesses GST has not been claimable on Google AdWords.
This is because the service has historically been provided to NZ businesses from outside of New Zealand and your contract was registered with Google Asia Pacific.
However that's all about to change.
Google has announced that effective from 1st November 2018 that it will be providing services to NZ customers from its newly created NZ business vehicle: Google New Zealand Limited.
This will mean that Google will pay taxes locally and its services will become subject to GST from 1st November.
Google New Zealand Limited is required by law to charge 15% GST (Goods and Service Tax) on its services, so you will see this appear as a new line item on your invoices from 1 November 2018.
For more information, speak with your Sutcliffe Graham adviser.