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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, when dealing with international subscriptions (case in point, my Adobe Creative Suite subscription) where payment is made to another country (in Adobe's case Ireland via Australia) no taxes are applied. That's right, the New Zealand Government CANNOT get their 15% slice of the action if the payment is made offshore.

So why does Dropbox want to charge me an extra 15% (in $US) because I happen to live in New Zealand?

When I entered a chat session with Dropbox about this matter I was mysteriously disconnected... ??

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amandachin

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.

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mikehenden

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?

Walter

Hi there @mikehenden - thanks for posting on our Community.

I just wanted to mention that Dropbox collects and remits tax on transactions when required to do so. Taxability and tax rate are generally determined by the location of the buyer and seller, and various state and local tax laws.

For more information, you can have a look here.

As for your chat session, do you happen to have a ticket number for reference?

I hope this helps a tad and please keep us posted.

amandachin

Opeechee

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.