Spotify has helped revolutionise the music industry, changing the landscape for bands such as Charli XCX, but Kiwis were falsely led to believe that was never at the expense of the taxman.

Online music service Spotify has admitted it incorrectly claimed it was charging New Zealanders GST when that was not the case.

It confessed to the blunder after being put on the spot about a discrepancy in its public statements on GST.

The popular streaming music service said it would be increasing the price of its premium music service by $2 a month to $14.99 from next week, explaining the price rise followed "the introduction of GST on our service in New Zealand last year".

MIKE BLAKE/REUTERS In 2016, 93 million people worldwide subscribed to Netflix.

A law change meant foreign suppliers of digital services such as subscription music and television companies became responsible for collecting GST on their services from late last year.

READ MORE:

* Spotify success for Masterton band

* You might be overpaying for streaming music

* Spotify mute on NZ video plans

Spotify's explanation for the price hike contradicted a statement the company made in 2015, when it insisted that its prices would not be going up as a result of the tax change because it had always charged GST since it launched in New Zealand in 2012.

"Spotify's prices won't increase due to them already paying GST. We can confirm that Spotify pays GST in New Zealand and has done so since launch," a representative from the company's Sydney public relations agency said at the time.

Spokeswoman Sophie Paterson said, when that statement was issued, Spotify's New Zealand invoices erroneously stated that its prices included GST.

"It did not, as this specific tax was not applicable nor did the law require it at the time," she said.

"When it was discovered that the invoice was incorrect it was immediately corrected. Since the introduction of GST in November 2016 we have complied fully, as we do in all other countries where our service is subject to [the tax]," she said.

Patterson later clarified that the individual line item for GST on its invoices prior to November had shown a rate "0 per cent", so they showed no actual charge for the tax.

Inland Revenue has been contacted for comment.