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richms
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  #1480234 27-Jan-2016 20:39
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I have no problem with paying the GST or the duty on things, its the BS other charges they whack on it to collect it as well, and the delays with them sending a snail mail letter to the delivery address. Which is useless if its going to my house where mail gets nicked all the time.





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bazzer
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  #1480307 28-Jan-2016 00:39
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Sanco: Question: Will they apply GST on goods bought duty free if they're over $60?

 

I think you have the wrong end of the stick with regards to this $60 thing, but anyway, yes, you may have to pay GST on goods brought duty free but I believe the threshold (personal goods concession) is $700.


Sanco

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  #1480442 28-Jan-2016 09:13
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sbiddle:

 

Sanco:

 

sbiddle:

 

GST (and duty where the product has one) have ALWAYS applied to EVERY purchase from overseas. If the value to be collected is under $60 then this is simply waived due to the costs of collecting the GST not stacking up.

 

If you've been charged on a $110 item it's probably because the product is eligible for duty AND GST, which have no exemption.

 

All of this and a calculator are explained very clearly on the whatmyduty website.

 

 

 

 

 

 

 

 

That post is helpful.

 

 

 

The threshold has ALWAYS been $400 and presents were NEVER taxed, buddy.

 

 

 

I am mentioning the new law that taxes anything worth more than $60 and now even gifts/presents worth more than $110.

 

 

 

I have had a gift for Xmas sent by my mum in Italy (a coffee machine) and I had to pay GST and duties on it. You think that's fair, good. I don't.

 

 

 

 

I don't make the rules, and the rules haven't changed any time lately. I do however import a lot of products myself and my employer does as well so have a pretty good idea of what you'll get away with.

 

The threshold has never been $400 - the threshold is based on the GST and/or duty component which is $60. This means you can normally import goods that are only subject to GST up to a value of $400 incl freight/postage before you'll have to pay GST. If the product is liable for GST and duty you'll have to pay along with the EITF regardless of the value of the goods, which is exactly why you can have a parcel at say $200 for example that will be subject to charges.

 

I never said it's not fair, I simply quoted the rules. If you're think the rules are unfair, you should approach Customs or your local MP about them.

 

 

 

 

 

 

 

 

 

 

Here: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11418586

 

 

 

You don't make the rules, but make a lot of unfounded statements. I guess being a mod allows you to say watever. I remember one old adage going: Don't believe everything you think.




richms
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  #1480455 28-Jan-2016 09:19
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Sanco:

 

Here: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11418586

 

You don't make the rules, but make a lot of unfounded statements. I guess being a mod allows you to say watever. I remember one old adage going: Don't believe everything you think.

 

 

Not sure what an article about proposed future changes that have not happened yet means?

 

whatsmyduty is pretty clear about how things are charged.





Richard rich.ms

sbiddle
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  #1480461 28-Jan-2016 09:24
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Sanco:

 

 

 

Here: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11418586

 

 

 

You don't make the rules, but make a lot of unfounded statements. I guess being a mod allows you to say watever. I remember one old adage going: Don't believe everything you think.

 

 

 

 

Those are proposed changes that have not taken effect yet.

 

 

 

Mind telling me what I've said that's incorrect? I'll happily edit or retract whatever is incorrect, but can't see anything I've posted here that isn't exactly how the current regulations operate.


keewee01
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  #1480465 28-Jan-2016 09:28
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Sanco:

 

sbiddle:

 

Sanco:

 

sbiddle:

 

GST (and duty where the product has one) have ALWAYS applied to EVERY purchase from overseas. If the value to be collected is under $60 then this is simply waived due to the costs of collecting the GST not stacking up.

 

If you've been charged on a $110 item it's probably because the product is eligible for duty AND GST, which have no exemption.

 

All of this and a calculator are explained very clearly on the whatmyduty website.

 

 

 

 

 

 

 

 

That post is helpful.

 

 

 

The threshold has ALWAYS been $400 and presents were NEVER taxed, buddy.

 

 

 

I am mentioning the new law that taxes anything worth more than $60 and now even gifts/presents worth more than $110.

 

 

 

I have had a gift for Xmas sent by my mum in Italy (a coffee machine) and I had to pay GST and duties on it. You think that's fair, good. I don't.

 

 

 

 

I don't make the rules, and the rules haven't changed any time lately. I do however import a lot of products myself and my employer does as well so have a pretty good idea of what you'll get away with.

 

The threshold has never been $400 - the threshold is based on the GST and/or duty component which is $60. This means you can normally import goods that are only subject to GST up to a value of $400 incl freight/postage before you'll have to pay GST. If the product is liable for GST and duty you'll have to pay along with the EITF regardless of the value of the goods, which is exactly why you can have a parcel at say $200 for example that will be subject to charges.

 

I never said it's not fair, I simply quoted the rules. If you're think the rules are unfair, you should approach Customs or your local MP about them.

 

 

 

 

 

 

 

 

 

 

Here: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11418586

 

 

 

You don't make the rules, but make a lot of unfounded statements. I guess being a mod allows you to say watever. I remember one old adage going: Don't believe everything you think.

 

 

 

 

Always do your research first - a news article is not an authoritive source of information. These days they are so poorly written, mis-written and unresearched.

 

 

 

And sbiddle is one of the most respected members of geekzone and does know what he is saying. sbiddle does not make unfounded statements. He knows what he is talking about.


freitasm
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  #1480587 28-Jan-2016 12:12
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There was a FUG breach here and the person received a message. I hope there is no need for me to come back on this thread for the same reason.




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Satch
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  #1480597 28-Jan-2016 12:25
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To me the rules are clear.  The calculation is:

 

If ((((cost of goods in currency paid x the prevailing Customs defined exchange rate) + duty) + GST) + GST on (Shipping x the prevailing Customs defined exchange rate) > $60, and customs pick this up, then GST + Duty + EITF is payable.

 

Or you can use the calculator at http://www.whatsmyduty.org.nz/ to work it out for you.  You just have to realise that Customs update their exchange rates every two weeks from memory so if you are close the the limit now, you may be over the limit by the time the goods hit customs if their exchange rate has changed.  This information is available on the Customs website.

 

I think I have the calculation clear, but I am sure someone will correct me if I don't ;-)

 

@sbiddle was completely correct in everything he stated as far as I can see.


Behodar
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  #1480600 28-Jan-2016 12:27
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[Edit: I was typing this while Satch was posting]

 

It seems that there has been a misunderstanding here, because I don't see anything incorrect in sbiddle's posts.

 

The threshold is $60, and has been for a number of years (it was previously $50). There has never been an official $400 threshold, but there has been a practical limitation at this figure. If you're importing a product with no duty component, then a $400 product contains $60 of GST (400 * 0.15 = 60). Therefore, a $399 product with no duty will not attract import fees, but a $400 product will.

 

If the product does have a duty component then the practical limit is lower. For example, a product with a 10% duty will trip the limit at $240 (60 / (0.15 + 0.10) = 240).


andrew027
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  #1480648 28-Jan-2016 13:24
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I was interested in this quote in the New Zealand Herald article linked in this thread, from Rod Duke, chief executive of the Briscoe Group:

 

I don't know personally what the retail industry view is but it's probably going to be similar to mine and I'd say the New Zealand general public will also have a similar view," Duke said, "and that is that GST and the collection of taxes in this country provides education, health, police, and public servants with employment, and any scheme which diminishes that and what's more leaves money overseas in the hands of people that don't even live in this country, is probably not fair." 

 

As a public servant I agree that the government needs to collect taxes to pay for services, and my salary, however I believe the majority of the New Zealand general public are quite happy to shop online with overseas retailers when products are (1) much cheaper than in local stores, and (2) often not available here locally at all.


Geektastic
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  #1480659 28-Jan-2016 13:46
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jmh:

 

Geektastic:

 

jmh:

 

Retail businesses really need to up their game.  NZ is the ideal place for an online business to be competitive.  With a retail outlet you may not get much foot traffic, and have retail space to pay for and staffing.  With an online business you can market nationally and maybe even internationally, with lower warehousing and staffing costs.  With higher sales bulk discounts are possible.  And yet, I rarely see a good online business in this country.  Most charge the same price as retail outlets, removing any possible benefit of shopping online.  In fact often the online business is just propping up a traditional retail operation.  

 

I wonder whether one of the problems is the preponderance of franchising in NZ retail.  The online business would eat into individual franchise operations and undermine the business model that is so profitable for the franchise holder.

 

Adding 15% to overseas won't rescue the retail sector.  I regularly shop in the UK with 20% sales tax and it's still cheaper.

 

 


Also you should not be paying that 20% if the goods are being exported from the EU...!

 

 

 

 

I know.  I meant, when I am over there which is reasonably often.

 

 

Even then, for non-trivial expenses, you can use the tourism VAT recovery thing though. I doubt they make it as easy as somewhere like Singapore but probably worth it for larger items at least.






Geektastic
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  #1480660 28-Jan-2016 13:48
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andrew027:

 

I was interested in this quote in the New Zealand Herald article linked in this thread, from Rod Duke, chief executive of the Briscoe Group:

 

I don't know personally what the retail industry view is but it's probably going to be similar to mine and I'd say the New Zealand general public will also have a similar view," Duke said, "and that is that GST and the collection of taxes in this country provides education, health, police, and public servants with employment, and any scheme which diminishes that and what's more leaves money overseas in the hands of people that don't even live in this country, is probably not fair." 

 

As a public servant I agree that the government needs to collect taxes to pay for services, and my salary, however I believe the majority of the New Zealand general public are quite happy to shop online with overseas retailers when products are (1) much cheaper than in local stores, and (2) often not available here locally at all.

 

 

IME very few people are 'happy' to pay considerably more for the same products for no genuine reason!

 

 






Geektastic
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  #1480662 28-Jan-2016 13:51
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sbiddle:

 

Geektastic:

 

mattwnz:

 

What's the item? Maybe it has a big percentage of duty on it?

 

 

 

 

Ah yes. Duty.

 

 

 

Anyone care to offer an explanation as to why every item of clothing and pair of shoes imported to NZ (i.e. almost all of them) has a somewhat random 10% Customs Duty in addition to GST?

 

 

Because clothing and shoes are both manufactured in NZ.

 

 

 

 

 

 

Not really. If you need a pair of decent running shoes, for example, AFAIK there are no factories in NZ producing Nike, Brooks, Adidas etc etc. 

 

A very small percentage of shoes and clothes may be made here (and note that made here does not mean having them made in China and whacking a NZ brand on them...!) but it's hardly enough of an industry to justify raising the price of the 95% or so that are not made here.






floydbloke
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  #1480686 28-Jan-2016 14:45
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Geektastic:

 

sbiddle:

 

 

 

.

 

....

 

Because clothing and shoes are both manufactured in NZ.

 

 

 

 

 

 

Not really. If you need a pair of decent running shoes, for example, AFAIK there are no factories in NZ producing Nike, Brooks, Adidas etc etc. 

 

A very small percentage of shoes and clothes may be made here (and note that made here does not mean having them made in China and whacking a NZ brand on them...!) but it's hardly enough of an industry to justify raising the price of the 95% or so that are not made here.

 

 

Add to that the difficulty of trying to find decent size 16 shoes (for my son), it's frustrating and expensive to have to pay freight + duty + GST to bring them in when there is no real viable alternative. (Although there are occasions when we stay under the threshold and it's just the freight charges we get stung with, but I'm just trying to emphasise the point  that's already been made by others that oft-times we have no choice but to buy on-line)





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Bung
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  #1480691 28-Jan-2016 14:56
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Behodar:

[Edit: I was typing this while Satch was posting]


It seems that there has been a misunderstanding here, because I don't see anything incorrect in sbiddle's posts.


The threshold is $60, and has been for a number of years (it was previously $50). There has never been an official $400 threshold, but there has been a practical limitation at this figure. If you're importing a product with no duty component, then a $400 product contains $60 of GST (400 * 0.15 = 60). Therefore, a $399 product with no duty will not attract import fees, but a $400 product will.


If the product does have a duty component then the practical limit is lower. For example, a product with a 10% duty will trip the limit at $240 (60 / (0.15 + 0.10) = 240).



When GST was 12.5% the threshold was $50. If that was the point that collection was economic why did it change to $60 when GST increased to 15% unless there was an intent to keep the $400 amount relevant as a guide for the most common imports ie no duty involved?

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