Customs tax on incoming package...

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

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Satch

1985 posts

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#263469 12-Oct-2009 12:36

I think it is harsh that freight and insurance attract GST given the high cost to ship things to NZ. But some genius somewhere decided it was a good idea...

billgates

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#263475 12-Oct-2009 12:54

If someone is a business and they import and sell the products in NZ market, they obviously will have to pay G.S.T to customs. Being a business, they can claim that G.S.T back from the IRD right?

Looking at the customs list of duty/tax, CD/DVD's are listed at 12.5% so that means the business only has to pay G.S.T on the shipment to customs but he can claim that back from the IRD. What does customs/government get out of a business then?

Do whatever you want to do man.

dickytim

2514 posts

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#263483 12-Oct-2009 13:18

I have trouble explaining this properly, but I'll try, yes the GST is claimed back as such, but when the goods are sold the GST is collected by the company and paid on to IRD. For example, I brought in an items for $10 and paid GST of $1.25 I claim back the GST but I sold the item for $100 + GST, so I collect the $12.50 on behalf of IRD, The end of the month/period comes, I have to give IRD their $12.50 but I can claim back the original $1.25 so the IRD bill is $11.25. Now I am in logistics not accounting so my comprehension is not as good as someone from IRD, and very basic at best, but this is the way I had it explained to me.

As far as I know there is no way to claim back duty, unless it has been mistakenly charged, and they wont even look at it if the difference is +/- $50.

sbiddle

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Biddle Corp

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#263529 12-Oct-2009 17:39

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.

Customs charge this. I got stung GST on some goods I purchased a few years ago. Had I opted for cheaper postage it would have ben OK. Because I didn't it put the goods over the limit.

I spent some time debating this with the customs people but their wording is very clear.

richms

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#263538 12-Oct-2009 19:00

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

i'm suggesting that they are not selling in great volumes and that the duty paid by the imported proper amps is excessive to counter the few large power amps that would affect the 2 companys that still make them in NZ. Plus their end of the market doesnt really warrent protection when they are already selling for such high prices.

Plus I would never buy one. Would take a bryston anyday ;)

Richard rich.ms

Dingbatt

6756 posts

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#263577 12-Oct-2009 21:28

Anyone know how long the $700 personal concession has been in place? Quite a while by my reckoning. Isn't it about time it got inflation adjusted again? Maybe to NZ$1000. As an example our cousins across the Tasman have a AUD$900 concession, and families are allowed to pool their concessions.

“We’ve arranged a society based on science and technology, in which nobody understands anything about science technology. Carl Sagan 1996

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