GST on the shipping cost?

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tims

118 posts

Master Geek

#299333 30-Aug-2022 10:28

I buy a fair amount online but have never been charged GST on the shipping component of the purchase but I'm bought some sandpaper from a NZ business and they have charged me GST on shipping (using NZ Couriers) as well as the sandpaper.

Is this correct - have they made a mistake?

sen8or

1778 posts

Uber Geek

#2961073 30-Aug-2022 10:32

GST is payable on all Goods and Services, including shipping, no mistake.

I'd say how businesses show shipping and its GST component varies from company to company, but the tax treatment is the same, they have a tax liability for the GST component of the shipping costs.

tims

118 posts

Master Geek

#2961083 30-Aug-2022 10:49

OK, thanks.

afe66

3181 posts

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Lifetime subscriber

#2961130 30-Aug-2022 14:04

I brought a car back from UK, while I got a correction factor I endup paying gst on whole cost of car including the vat and cost of shipping which also had vat on it..... So gst on gst

Geektastic

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#2961182 30-Aug-2022 14:50

afe66: I brought a car back from UK, while I got a correction factor I endup paying gst on whole cost of car including the vat and cost of shipping which also had vat on it..... So gst on gst

Should have picked it up in Monaco!

frankv

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#2961227 30-Aug-2022 16:36

I believe you can claim the VAT back from the UK government? Like you can claim GST back on goods that are exported from NZ.

GST is payable on the last leg of shipping when importing goods to NZ. So you could (for instance) get it shipped from the UK to (say) Australia, and then from Australia to NZ. You would then only have to pay GST on the trans-Tasman leg. But I doubt it would save anything by the time you paid the handling fees in Australia. But worth bearing in mind if shipping something from (say) the East coast of the USA to NZ where it does a big overland trip before loading onto a ship on the West coast.

CruciasNZ

879 posts

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#2961228 30-Aug-2022 16:45

Yeah it's a pain in the ass on Youshop as you pay GST on the goods, shipping to Youshop, and then the shipping to NZ.

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Scott3

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#2961282 30-Aug-2022 19:32

frankv:

I believe you can claim the VAT back from the UK government? Like you can claim GST back on goods that are exported from NZ.

GST is payable on the last leg of shipping when importing goods to NZ. So you could (for instance) get it shipped from the UK to (say) Australia, and then from Australia to NZ. You would then only have to pay GST on the trans-Tasman leg. But I doubt it would save anything by the time you paid the handling fees in Australia. But worth bearing in mind if shipping something from (say) the East coast of the USA to NZ where it does a big overland trip before loading onto a ship on the West coast.

On the car itself, only if it is Vat Qualified. (I think they are cars that are fairly new and have been owned by companies)

If you are looking to buy a sub 2 year old car from the UK, you pritty much must get one that is vat qualified for the numbers to stack up.

People selling such cars know it adds to their value, so often include Vat Q, or vat qualified in the listing.

Sharesies kids

Free kids accounts - trade shares and funds (NZ, US) with Sharesies (affiliate link).

afe66

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#2961601 31-Aug-2022 16:06

If I had been very clever I would have bought it tax free with understanding I would be exporting from EU within the year but I didn't know how long I was living in uk
.

mattwnz

20108 posts

Uber Geek

#2962110 1-Sep-2022 16:23

sen8or:

GST is payable on all Goods and Services, including shipping, no mistake.

I'd say how businesses show shipping and its GST component varies from company to company, but the tax treatment is the same, they have a tax liability for the GST component of the shipping costs.

GST is apparently not paid on financial services, such as bank fees. Also not on rent. So there are some exemptions.

sen8or

1778 posts

Uber Geek

#2962139 1-Sep-2022 17:07

Oooh, quite the poignant topic at the moment...

But rent - it can be exempt if residential, commercial rent / lease is subject to GST :)

richms

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#2962142 1-Sep-2022 17:23

Also any stored value thing like a prepay topup or steam card is exempt and you only get GST when you spend it on the app that it is for. Steam last I checked wouldn't give you a workable GST invoice if you used cards which was a right pain.

Richard rich.ms