Advice on GST charged on Etsy purchase

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 › Advice on GST charged on Etsy purchase

Eva888

2761 posts

Uber Geek
+1 received by user: 2422

Lifetime subscriber

#317892 24-Nov-2024 20:48

Buying a gold pendant on Etsy for a present. Worth $345 NZ. Etsy is charging me GST on it but from what I understand we are not charged for overseas purchases if the value is under $400.

I haven’t completed the purchase as want to make sure first that not being wrongly charged. Thanks.

Behodar

11094 posts

Uber Geek
+1 received by user: 6071

Trusted

Lifetime subscriber

#3312484 24-Nov-2024 20:49

The rules changed a few years ago. It's a bit complicated now, but it's correct to be charged GST.

Jase2985

13730 posts

Uber Geek
+1 received by user: 6202

ID Verified

Lifetime subscriber

#3312485 24-Nov-2024 20:53

"Customs does not collect duty, fees or GST unless the value of your item/shipment is over NZ$1000."

"GST of 15% applies to all imported items or gifts, including anything you bought online.

Overseas suppliers may charge GST on items sent to you that are valued at NZ$1000 or less."

Qazzy03

545 posts

Ultimate Geek
+1 received by user: 491

#3312486 24-Nov-2024 21:02

https://www.consumerprotection.govt.nz/general-help/ways-to-buy-and-pay/online-shopping#buying-online-from-an-overseas-business

New GST collection rules explained

Overseas businesses that meet New Zealand’s GST registration criteria collect GST on all products valued at or under $1,000, that are sold to New Zealand consumers.

This change came into effect on 1 December 2019.

This doesn’t mean all goods purchased online by consumers have become more expensive.

In some cases, purchases have become cheaper because consumers no longer have to pay tariff duty and cost recovery charges, on items valued under $1,000.

Eva888

2761 posts

Uber Geek
+1 received by user: 2422

Lifetime subscriber

#3312489 24-Nov-2024 21:37

Thanks for that. So much for getting excited with Etsi prices. My purchase started at $215 and then added higher carets etc and it’s over $400 now.

Temu don’t seem to charge GST though and items were so cheap I didn’t really take notice if they were charged or not.

Oblivian

7345 posts

Uber Geek
+1 received by user: 2117

ID Verified

#3312498 24-Nov-2024 22:50

It's basically any platform that exports $60k/yr to nz must register and pass it on.

So smaller fry may not if you approach sellers or websites directly, (but they'll tend to add their own country taxes and not discount you..) But the selling platforms are defo all on customs/ird radar.

mattwnz

20515 posts

Uber Geek
+1 received by user: 4795

#3312507 25-Nov-2024 00:13

I think Temu do charge it but it is probably in the price already. Aliexpress charges GST which they add into the checkout

Samsung

Shop now on Samsung phones, tablets, TVs and more (affiliate link).

Bung

6733 posts

Uber Geek
+1 received by user: 2926

Subscriber

#3312513 25-Nov-2024 06:42

Eva888: I haven’t completed the purchase as want to make sure first that not being wrongly charged. Thanks.

IRD aren't the worst robbers out there. You first have to at least try to make sure that the trader has a long history of good reviews. Some "Gold" is so thinly plated it will wear off almost before your credit card bill arrives.