Online retailers, online marketplaces, and re-deliverers shipping internationally to New Zealand may be impacted by a proposed change to New Zealand’s goods and services tax (GST) rules. Under the new rules proposed by New Zealand’s Government, overseas businesses would be required to register for, collect, and return GST on low-value goods sold to consumers in New Zealand beginning
December 1, 2019
. New Zealand’s Inland Revenue has indicated that the proposed changes became law in
July, 2019
.
A similar approach was taken in Australia just last year. Since July 1, 2018, international businesses are required to collect 10% GST on low value goods they sell to consumers in Australia, if their sales to Australia equal A$75,000 or more in any 12 month period.
The approved proposed changes to New Zealand’s GST will apply to goods valued at NZ$1,000 or less (excluding GST). A US-based
online retailer
that sells and ships to New Zealand will be required to register for and pay GST if the eTailer’s total taxable supply of goods and services to New Zealand consumers is likely to exceed NZ$60,000 in the 12-month period beginning from the date the new rules start. It’s important to note that GST can apply to the goods, international transport, insurance, and the amount you charge for your services.
In the case of an overseas merchant that sells their goods through an
online marketplace
, the marketplace will be required to register for and pay the GST on the goods if the total value of remote services and low-value goods supplied to New Zealand consumers through the marketplace exceeds NZ$60,000 in a 12-month period.
Under the proposed changes, if you offer a
re-delivery service
, you will be required to register for and return GST if the total value of the goods that you deliver to New Zealand consumers exceeds NZ$60,000 in a 12-month period.
In preparation for this anticipated change:
- Analyze your sales to determine if they are likely to reach the NZ$60,000 threshold in a
12-month period.
- Ensure your systems are capable of identifying and reporting on these sales.
For more information and direction regarding this proposed change, visit the New Zealand Inland Revenue's website at
www.ird.govt.nz/GSTupdate
.
Questions?
You can reach out to our Customer Care Team
