New Zealand GST required for low-value goods from 1st December 2019

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The New Zealand Government has passed into law new goods and services tax (GST) rules that apply from the 1st of December 2019. Overseas businesses that sell low-value goods to consumers in New Zealand may need to register for, collect and return GST of 15%. Businesses must register for New Zealand GST if sales exceeded NZ$60,000 in the trailing 12 months or will go over NZ$60,000 the next 12 months.

Previously, New Zealand GST was collected at the border but wasn’t collected for ecommerce sales where the total GST and duty would have been less than NZ$60. As ecommerce has grown, so have the losses which is why the New Zealand Government are making these changes.

What are low-value goods?

A low-value good is a physical good valued at NZ$1,000 or less (excluding GST). Examples include:

  • Books
  • Clothing
  • Cosmetics
  • Shoes
  • Sporting equipment
  • Small electronic items

When should you collect New Zealand GST?

You are obliged to collect New Zealand GST if you exceed the NZ$60,000 threshold, you should collect and remit GST for website and marketplace sales. However some marketplaces such as TheMarket and TradeMe will charge the consumer GST and collect it on your behalf. As they act as the merchant of record, any tax collected by a marketplace won’t count towards your NZ$60,000 threshold.

For assistance visit the New Zealand Inland Revenue website or you can email [email protected]

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