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New Zealand amends the import GST exemption on low value imports

By June 27, 2019July 10th, 2021No Comments

The New Zealand government has introduced legislation to make changes to the Goods and Services Tax (GST) rules that apply to non-resident businesses shipping to consumers in the country…

The New Zealand government has introduced legislation to make changes to the Goods and Services Tax (GST) rules that apply to non-resident businesses shipping to consumers in the country.

Currently the low value threshold allows all importers to purchase goods from non-resident companies without paying any GST or duties where:

  • The combined value of duty, excise and GST calculated on the goods totals NZ$60 or less.
  • The goods have no duty applicable and are valued up until an amount of NZ$400.00

By using this threshold, non-resident businesses shipping low value goods can avoid having to GST register and charging GST on their sales in the country.

However, in order to remove the unfair advantage that this gives to these sellers over resident businesses, the New Zealand government will make these businesses GST register if their low value import sales sold to non-GST registered businesses, reach the registration threshold of NZ$ 60,000.

It is likely that these new rules will be introduced from 1 October 2019 and this follows Australia who introduced similar GST rule changes on 1 July 2018.

 

The above information was kindly provided by Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: contact@fiscalsolutions.co.uk.