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Overseas Suppliers To NZ Urged To Register For GST

by Mary Swire, Tax-News.com, Hong Kong

18 October 2019


New Zealand's tax agency has urged overseas businesses who sell goods valued at NZD1,000 (USD629) or less to register for GST ahead of the December 1, 2019, deadline.

The Government is introducing an offshore supplier registration system that requires overseas businesses to collect GST on low-value goods sold to New Zealand consumers at the point of sale. These businesses may need to register for, collect, and return GST of 15 percent from December 1.

The Inland Revenue Department said: "The change will help level the playing field for New Zealand businesses and stop the loss of a significant amount of tax revenue from the steady growth in online shopping. The change applies to all sales of low-value goods to consumers in New Zealand including online, mail order, or by phone."

Registration applies to merchants or retailers selling directly to New Zealand consumers, as well as online marketplaces and "re-deliverers".

Under the changes, New Zealand consumers will no longer pay tariff duty, an import transaction fee, or a biosecurity system entry levy at the border. New Zealand Customs will still collect these, and GST, if the value is over NZD1,000.

Processes will be put in place so Customs does not collect GST on any goods already taxed at the point of sale by the supplier.

Until December 1, 2019, New Zealand Customers will continue to collect GST and tariff duty at the border on goods brought from overseas when the amount due is more than NZD60. This excludes most alcohol and tobacco products.

GST is already collected on online services and intangibles bought from overseas, such as software downloads, e-books, legal and accounting advice, and streamed movies and music.

TAGS: tax | business | value added tax (VAT) | accounting | offshore | New Zealand | retail | services

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