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mikehenden's avatar
mikehenden
New member | Level 2
2 years ago
Solved

Dropbox charges 15% Goods and Service Tax in New Zealand. Why?

I am based in New Zealand. I'm looking at updating my Dropbox subscription. So I see I can get 2TB of storage on Dropbox for $119.88 + 15% GST. I then see that all pricing is in $US. As I see it, ...
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  • amandachin's avatar
    amandachin
    2 years ago

    Hi mikehenden , New Zealand has local VAT legislation which states that a non-resident company (Dropbox) who supplies services to consumers located in New Zealand must pay New Zealand VAT at 15% to the New Zealand tax office. 

mikehenden's avatar
mikehenden
New member | Level 2
2 years ago

Timely post. As I have just mentioned in my post, I'm bemused by the Dropbox price being in USD, and then having to pay and extra 15% 'GST' because I happen to live in New Zealand. New Zealand Goods and Services Tax (GST) is payable to the New Zealand Government, but if payment is made to an offshore account, the New Zealand Government does NOT get its 15% slice of the action. So where does this extra 15% go?

  • amandachin's avatar
    amandachin
    Icon for Dropbox Product Manager rankDropbox Product Manager
    2 years ago

    Hi mikehenden , New Zealand has local VAT legislation which states that a non-resident company (Dropbox) who supplies services to consumers located in New Zealand must pay New Zealand VAT at 15% to the New Zealand tax office. 

    • Opeechee's avatar
      Opeechee
      Explorer | Level 4
      2 years ago

      Amanda, 

      Nobody cares about this, bring back Dropbox sharing direct to instagram please. You guys have completely dropped the ball here giving us it then taking it away, it's infuriating. 

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