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Thread: Low value goods GST in New Zealand

  1. #1
    CoffeeSnobs Owner Andy's Avatar
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    Mar 2004
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    Low value goods GST in New Zealand

    Gene Cafe Coffee Roaster $850 - Free Beans Free Freight
    Just received this, looks messy for our NZ CS'rs and for everyone else that ships into NZ as of next month.

    If I ship an order for $100 I'll have to charge the $15 on top and then submit the $15to NZ inland revenue (after registering with them and I assume a pile of paper/time/hassle and current transaction fees)

    Far easier to say "sorry, we only ship in Australia"


    Introduction of low value goods GST in New Zealand

    We wanted to make you aware of some changes that will impact businesses that currently sell goods to New Zealand consumers valued at NZD $1000 or less.

    This material is provided for general information purposes only and is not intended to be specific advice for your business needs. Please contact the New Zealand Inland Revenue department for more information:
    Fact sheet | Tax Policy, Inland Revenue

    What's changed?
    From 1 December 2019, New Zealand Goods and Services Tax (GST) of 15% will apply to the sale of low value goods that are imported by consumers into New Zealand (NZ). Online retailers, marketplaces and international businesses selling directly to NZ consumers online, by phone or mail order may be impacted. Offshore suppliers will also be required to register with the New Zealand Inland Revenue department when their total taxable supplies of goods and services to New Zealand exceed NZD $60,000 in a 12-month period.

    NZD $1000 threshold for goods explained
    The NZD $1000 threshold for goods is based on the customs value of the goods. This means transport and insurance costs are excluded when determining if GST needs to be charged. All consignments valued NZD $1000 or less can be cleared on an Inward Cargo Report (ICR), a Simplified Import Declaration (SID) or a standard Import Declaration. There is no change to the current processing of consignments over NZD $1000 – the standard GST and duty calculation will be applied. Where GST has been prepaid under the Offshore Supplier Registration scheme, GST would only be payable on the duty amount.

    Current Threshold Current Treatment
    < NZD $400 No Duty*, No GST, No Import Transaction Fee
    ≥ NZD $400 Duty, GST, Import Transaction Fee ($55.71) collected at destination border by New Zealand customs

    New Threshold New Treatment as at 1 December 2019
    < NZD $1000 GST must be collected by overseas vendor
    No Duty, GST, Import Transaction Fee collected at destination border by New Zealand customs*

    ≥ NZD $1000 Duty, GST, Import Transaction Fee ($55.71) collected at destination border by New Zealand customs

    * Except most alcohol and tobacco products which will continue to be taxed at the border

    What you need to do:
    • Update your business systems so you can collect and return GST to the New Zealand Inland Revenue Department
    • Register with Inland Revenue for GST in New Zealand
    • Charge and collect GST on each good sold to consumers and delivered to addresses in New Zealand:
    - Valued at NZ$1000 or less
    - Valued over $1000, if you've elected to do so
    • Ensure that a receipt is provided to the consumer clearly showing the amount of GST charged
    • File GST returns and pay the GST to Inland Revenue
    Further information
    Please contact the New Zealand Inland Revenue department to help ensure that you are compliant as your business may be impacted by these changes. Fact sheet | Tax Policy, Inland Revenue

  2. #2
    Senior Member WhatEverBeansNecessary's Avatar
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    Apr 2017
    I only have one word to say Andy - Lame

    Once again the NZ Government is screwing the little guys.

  3. #3
    Senior Member LeroyC's Avatar
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    Sep 2013
    Woodend, New Zealand
    Apparently it’s actually to help the ‘little guys’. The domestic retailers that is. Personally I think it’s all for show and won’t really help small independent NZ retailers that much at all as it’s scale that’s the problem, not GST.

  4. #4
    Mal Dimal's Avatar
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    Oct 2004
    Warwick, QLD


  5. #5
    338 is offline
    Senior Member
    Join Date
    Mar 2017
    I think it will help the little guys, if you are selling a grand a week to NZ and then get all this paperwork, like Andy says it really starts to get too hard. I think many will say we don't ship to NZ, no one wants to be a tax collector for another country as well as their own. Then collecting on $900 but not on $1100, all sounds just hard work without the government even giving commission on the money you collect! Did a trade show in NZ where we sold stock, probably spent as long organising Customs in and out as organising the show.
    Dimal likes this.

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