Customs tax on incoming package...

Please note this sub-forum does not provide professional finance advice. You should seek advice from a licensed financial advisor.

To post in this sub-forum you must have made 100 posts or have Trust status or have completed our ID Verification.

If investing please consider our affiliate link for new accounts: Sharesies.

Forums › Finance and wealth management › Customs tax on incoming package...

1 | 2 | 3 | 4

2125 posts

Uber Geek
+1 received by user: 37

#263364 11-Oct-2009 22:27

corksta:
Damager:
corksta: Here's a link outlining what is and isn't charged GST/duty:

http://www.customs.govt.nz/importers/Private+Importers/Customs+Charges.htm#paraTitle03

Headphones are listed there as being charged at 12.5%.

Most freight arrives into Auckland first so yes it will go through customs there. The same way that people don't go through customs at their final destination, they do it when they first land.

I had a good look and didnt see Cellphones on the list. I planned to buy a cellphone so i should be fine not to pay anything?

Look again, it's listed as 'Telephones, Cellular' - 12.5%

Drats! :D

Cheers Corksta

- Telstra HTC Touch Pro2 - Energy ROM WM6.5.5 20 Oct/Cyanogen Mod Froyo 2.2 - R.I.P
- AT&T Galaxy S Captivate 16GB on XT (now with brother)
- Samsung Galaxy S2 on XT- Runs ICS 4.0.3 Resurrection Remix 9.2
- Business Hours - Work In The Electricity Industry, After Hours - DJ/Turntablist - Will Scratch Vinyl For Free'
- What's next??? S3?

corksta

2405 posts

Uber Geek
+1 received by user: 382

Trusted

Subscriber

#263368 11-Oct-2009 22:43

Yup drats alright, sorry to be the bearer of bad news!

HiJinx

253 posts

Ultimate Geek

Geekstore

#263375 11-Oct-2009 23:30

So let me get this straight..

Is it:
1) If you import something over $50 you are up for GST.

Or:
2) If you import something over $400 you are up for GST.

If it's the first one of the two, i'm gutted. (personal imports, totally unrelated to the company I am involved in)

Shaun Fisher - www.geekstore.co.nz

E: shaun[at]geekstore[dot]co[dot]nz
P: 0800894508 F: 0800897451

richms

29099 posts

Uber Geek
+1 received by user: 10210

Trusted

Lifetime subscriber

#263377 11-Oct-2009 23:40

the 12.5% is the GST, so its if its over $400 - that would give you the $50 threshold of what they bother to collect.

Things have higher amounts on the list if they have duty as well, like amplifiers because we all know that NZ has a booming amplifier industry to protect...

Richard rich.ms

HiJinx

253 posts

Ultimate Geek

Geekstore

#263378 11-Oct-2009 23:42

richms: the 12.5% is the GST, so its if its over $400 - that would give you the $50 threshold of what they bother to collect.

Things have higher amounts on the list if they have duty as well, like amplifiers because we all know that NZ has a booming amplifier industry to protect...

Thanks, richms. Exactly what I needed to know.

Shaun Fisher - www.geekstore.co.nz

E: shaun[at]geekstore[dot]co[dot]nz
P: 0800894508 F: 0800897451

corksta

2405 posts

Uber Geek
+1 received by user: 382

Trusted

Subscriber

#263379 11-Oct-2009 23:46

If you bring into the country anything on that list on the first page tax is charged on it at the applicable rate. However you only have to pay the tax if it's calculated to be $50 or more.

Dell

Shop now for Dell laptops and other devices (affiliate link).

Bung

6733 posts

Uber Geek
+1 received by user: 2926

Subscriber

#263397 12-Oct-2009 08:03

richms: the 12.5% is the GST, so its if its over $400 - that would give you the $50 threshold of what they bother to collect.

Things have higher amounts on the list if they have duty as well, like amplifiers because we all know that NZ has a booming amplifier industry to protect...

The $400 also includes international freight and insurance costs.

Are you suggesting that there is no NZ amplifier industry or just that you can't afford them :0

dickytim

2514 posts

Uber Geek
+1 received by user: 537
Inactive user

#263419 12-Oct-2009 09:41

Bung:
richms: the 12.5% is the GST, so its if its over $400 - that would give you the $50 threshold of what they bother to collect.

Things have higher amounts on the list if they have duty as well, like amplifiers because we all know that NZ has a booming amplifier industry to protect...

The $400 also includes international freight and insurance costs.

Are you suggesting that there is no NZ amplifier industry or just that you can't afford them :0

There shouldn't be any GST or duty on these charges, that would be highly unusual as it is an international service obtained overseas, for that matter there is no GST on freight send out of NZ either.

Bung

6733 posts

Uber Geek
+1 received by user: 2926

Subscriber

#263421 12-Oct-2009 09:45

dickytim:There shouldn't be any GST or duty on these charges, that would be highly unusual as it is an international service obtained overseas, for that matter there is no GST on freight send out of NZ either.

Argue with Customs if you must, this is from their web page linked earlier.

"Where applicable, Customs duty is levied on the transaction value of the goods (the price actually paid for them). Goods and Services Tax (GST) of 12.5 percent is then calculated on the duty-inclusive value plus international freight and insurance charges."

dickytim

2514 posts

Uber Geek
+1 received by user: 537
Inactive user

#263453 12-Oct-2009 11:54

I don't need to argue with customs, that is what the customs broker is for and we don't pay tax on freight or insurance.

billgates

4706 posts

Uber Geek
+1 received by user: 672

Trusted

#263457 12-Oct-2009 12:10

You don't have to pay GST on frieght and insurance.

Do whatever you want to do man.

Quic Broadband

Move to New Zealand's best fibre broadband service (affiliate link). Free setup code: R587125ERQ6VE. Note that to use Quic Broadband you must be comfortable with configuring your own router.

Satch

1985 posts

Uber Geek
+1 received by user: 259

#263460 12-Oct-2009 12:13

billgates: You don't have to pay GST on frieght and insurance.

Well as Bung pointed out it clearly states on the Customs website that GST is payable on freight and insurance.

Bung

6733 posts

Uber Geek
+1 received by user: 2926

Subscriber

#263462 12-Oct-2009 12:17

dickytim: I don't need to argue with customs, that is what the customs broker is for and we don't pay tax on freight or insurance.

This from a broker's site

"
With very few exceptions, goods imported into New Zealand are liable for Goods and Services Tax (GST) of 12.5 percent. GST is payable on the sum of the following amounts:

Customs value of the goods.

Customs duty payable.

Freight and insurance costs incurred in transporting the goods to New Zealand."

Freight and insurance costs aren't included in the value assessed for Customs Duty.

From the IRD
"3.1 Unlike imported goods, most imported services are not subject to GST, except for freight and insurance services associated with imported goods.[9] This treatment largely reflects the limited volume of imported services that existed when GST was introduced, and the practical difficulties associated at that time with levying and collecting GST on them."

dickytim

2514 posts

Uber Geek
+1 received by user: 537
Inactive user

#263466 12-Oct-2009 12:25

well bugger me, I have just gone thru my latest customs entry, and Bung is actually 100% correct, the GST at the bottom doesn't add up to the value of the goods, but when you add the freight in, vua la it adds up

It appears that I am wrong and have been misinformed. I withdraw my previous statements on the matter.

billgates

4706 posts

Uber Geek
+1 received by user: 672

Trusted

#263468 12-Oct-2009 12:32

Satch:
billgates: You don't have to pay GST on frieght and insurance.

Well as Bung pointed out it clearly states on the Customs website that GST is payable on freight and insurance.

I take my words back.

Do whatever you want to do man.

1 | 2 | 3 | 4