Thanks to Australia Post for this wording – if you think that the below requirements will require your business to register – please get in contact so we can discuss and register your business with IRD New Zealand.
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
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|
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