Claiming back GST on Amazon import fees deposit?

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steveh7nz

2 posts

Wannabe Geek

#216595 4-Jul-2017 15:42

I'm buying electronics from Amazon.com for my GST-registered business.

As you probably know, Amazon pre-charges the GST and customs fees as pays them on your behalf. Fine. However under the old system, the importing courier would forward me the Customs invoice and I could use that for my next GST return.

Under the new system, I just get one line item "Import Fees Deposit" which is in USD and does not break down GST, Customs charges, or Amazon's margin (if any). My accountant reckons that's not good enough if I want to claim back the GST component.

Amazon support haven't been of any help here - I tried asking for a breakdown and they weren't prepared to give me one.

Has anyone worked out how to do this?

mattwnz

20149 posts

Uber Geek

#1812659 4-Jul-2017 15:54

Surely if a company is charging NZ gst, they have to provide a tax invoice that companies with the NZ governments tax invoice requirements, that allows you to them claim for that GST back? Maybe you need to contact IRD to see where the responsibility lies.

Wiggum

1199 posts

Uber Geek
Inactive user

#1812662 4-Jul-2017 15:57

GST cannot be claimed on services and products from overseas suppliers.

geocom

594 posts

Ultimate Geek

Subscriber

#1812665 4-Jul-2017 15:59

There is nothing you can do. I have tried IRD, Customs, High Level Amazon Customer Service agent.

IRD say to contact Customs and customs say that amazon should not really be doing it and Amazon told me "we don't support commercial import orders."

Geoff E

steveh7nz

2 posts

Wannabe Geek

#1812666 4-Jul-2017 16:05

Stink. Guess I'll need to avoid Amazon in the future. Or use Youshop.

surfisup1000

5288 posts

Uber Geek

#1812668 4-Jul-2017 16:08

Wiggum:

GST cannot be claimed on services and products from overseas suppliers.

I think you are mixed up here, if GST is paid on an imported item then as a business you can certainly claim it back.

But, you cannot charge GST on overseas customers.

surfisup1000

5288 posts

Uber Geek

#1812669 4-Jul-2017 16:09

geocom:

There is nothing you can do. I have tried IRD, Customs, High Level Amazon Customer Service agent.

IRD say to contact Customs and customs say that amazon should not really be doing it and Amazon told me "we don't support commercial import orders."

Surely retail customers need to see an itemised list too, in order to make sure they haven't been overcharged somewhere.

geocom

594 posts

Ultimate Geek

Subscriber

#1812675 4-Jul-2017 16:20

surfisup1000:

Surely retail customers need to see an itemised list too, in order to make sure they haven't been overcharged somewhere.

They are not registered for GST in NZ and ultimately they don't pay the IRD either the shipment company in NZ does that and bills Amazon, Amazon cannot claim back the GST seeing as they are not registered to do so. Amazon then charge that amount to the client and as such this is no longer considered GST even though all the funds have gone to the IRD. Amazon can charge you what they want to provide the goods its up to the customer to decide if they think that figure is fair.

Its a bit like when you buy a good you don't see an itemised list of what went into making that good you only see the end value that the company wants to charge.

Geoff E

Sharesies

Trade NZ and US shares and funds with Sharesies (affiliate link).

mattwnz

20149 posts

Uber Geek

#1812677 4-Jul-2017 16:26

geocom:

surfisup1000:

Surely retail customers need to see an itemised list too, in order to make sure they haven't been overcharged somewhere.

They are not registered for GST in NZ and ultimately they don't pay the IRD either the shipment company in NZ does that and bills Amazon, Amazon cannot claim back the GST seeing as they are not registered to do so. Amazon then charge that amount to the client and as such this is no longer considered GST even though all the funds have gone to the IRD. Amazon can charge you what they want to provide the goods its up to the customer to decide if they think that figure is fair.

Its a bit like when you buy a good you don't see an itemised list of what went into making that good you only see the end value that the company wants to charge.

It makes me wonder why they are bothering to collect GST. They must have some arrangement with NZ customs or the IRD if they are collecting and then paying it directly. But if this is the case, they should be providing adequate documentation to allow people to claim back the GST from the IRD.