E-books are among the digital products that are likely to go up in price with a move to collect GST.

Cabinet ministers will decide whether to press ahead with a "Netflix tax" on digital services such downloadable music, movies, books and software in the next week or two.

Revenue Minister Todd McClay said on Wednesday he then intended to consult the public on the option, which would oblige overseas internet companies such as Netflix, Amazon and Spotify to add GST to the digital services they provide to New Zealand consumers.

McClay said the public discussion paper would be released a few weeks after the Cabinet debated the issue, assuming ministers agreed.

The Australian government is already drafting legislation to oblige overseas firms to charge GST on digital services, and countries including South Africa and Norway have made the change.

McClay told parliament's Finance and Expenditure select committee that it was a "fairness issue". Inland Revenue officials had found steps other countries had taken to collect such taxes could work for New Zealand, he said.

Spark chief executive Simon Moutter has been vocal on the tax issue, arguing it is not reasonable it has to charge GST on its Lightbox online television service while Netflix does not add the tax to the New Zealand version of its rival internet television service.

McClay said he had asked officials to look at whether whether New Zealand and Australia could establish a single registration scheme, so foreign suppliers could register once to pay sales tax in both countries.

"There may be some challenges, but … Australia is our closest neighbour and officials are going to look for ways to cooperate."

The Organisation for Economic Cooperation and Development was also looking at developing a registration system, he said.

McClay hinted the "Netflix tax" proposals were unlikely to canvass a cut to the threshold under which physical goods can be imported tax-free from overseas websites.

Under Customs' rules, internet shopping purchases generally escape GST if their value, including shipping, falls under $400. McClay said officials had advised that no countries had yet found an efficient way to collect tax on lower-value physical goods.