GST on imported goods still happening December 1st?

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Uber Geek
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#2364567 2-Dec-2019 12:30

I asked, but as predicted didn't get anywhere, the best the, possibly human, operator could say was view the financial detail but that doesn't show Aliexpress' GST number.

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James Sleeman
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LostBoyNZ

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Ultimate Geek
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#2364706 2-Dec-2019 14:27

I'm in the same boat, in that many of my purchases from Amazon, Aliexpress etc are for business use, but there's currently no way to claim the GST back.

According to IRD, "Low-value goods sold to GST-registered New Zealand businesses for use in their business are also generally excluded under the new rules. That’s because businesses can claim back GST on these purchases, so we would just end up paying back any GST that had been collected. However, some overseas businesses may opt to collect GST on low-value goods supplied to GST-registered New Zealand businesses. They must issue a tax invoice which will allow the New Zealand business to claim the GST back."

Which implies they need to ask us if it's for personal or business use / they could ask for our GST registration number.

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Ruphus

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#2364767 2-Dec-2019 14:46

My Amazon invoice from Friday has a GST number on it.

LostBoyNZ

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#2364809 2-Dec-2019 14:51

Ruphus:

My Amazon invoice from Friday has a GST number on it.

That's a relief to hear! :) Ideally eBay, Aliexpress etc will do that too.

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Elgin

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#2365115 2-Dec-2019 19:32

I wonder what percentage of GST collected by these foreign companies actually gets paid to IRD NZ? It's not as if IRD NZ are going to audit Amazon, Ebay or AliExpress to check their NZ sales figures.

TENKAN

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#2365116 2-Dec-2019 19:36

Exactly my thoughts as well, hard to believe that they actually left it up to foreign companies to collect tax on our behalf!

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floydbloke

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#2365263 3-Dec-2019 07:11

Elgin:

I wonder what percentage of GST collected by these foreign companies actually gets paid to IRD NZ? It's not as if IRD NZ are going to audit Amazon, Ebay or AliExpress to check their NZ sales figures.

Do you mean by error or are you suggesting these multinationals would consciously and deliberately commit tax-fraud (albeit not in their home countries)? I very much doubt the latter myself.

Sometimes I use big words I don't always fully understand in an effort to make myself sound more photosynthesis.

sbiddle

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#2365271 3-Dec-2019 07:26

TENKAN: Exactly my thoughts as well, hard to believe that they actually left it up to foreign companies to collect tax on our behalf!

I'm really interested to know how you think it should be collected otherwise, factoring in the reasons why we had a de minimis and the costs of processing at the border.

TENKAN

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#2365272 3-Dec-2019 07:30

Say what? Pretty obvious really the "status quo" should have stayed as it was.

sbiddle

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#2365276 3-Dec-2019 07:51

TENKAN: Say what? Pretty obvious really the "status quo" should have stayed as it was.

Why?

I'd love to know why you think you should be able to import something and not pay GST.

Every product coming into NZ is liable for GST and/or duty and has been since 1985 when GST was introduced. The de minimis was introduced for a very specific reason and it's pretty clear it's now a 35yr old concept that is now past its time when the simply reality is each year it's simply costing the government of the day more and more in lost tax revenue as online shopping grows.

I see the concept of the policy as being something that's designed to bring fairness to the system, however the biggest issue is that it it doesn't deliver fairness. The new changes mean the cost of all customs and biosecurity processing is now only paid for by those importing products more than $1000 which now means cross subsidisation of those costs.

It's also going to mean current imports for many people between $400 and $999 will now incur no GST so significant losses in GST revenue are going to occur.

What will be interesting is to look at it a year from now and see what the loss of revenue is vs the gains from what is collected.

TENKAN

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Ultimate Geek
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#2365280 3-Dec-2019 08:15

Your got the wrong end of the stick.

At no time did I say I support non payment of GST.

It's was the government's decision to not collect the GST below $400.

So you agree with me that this new system is not going to be fair. So why bother, this is why I'm saying keep the system as it was.

How do you work out that people who import goods between $400 and $999 are not going to pay gst? The freight forwarding companies will be collecting it as well as the online sellers.

Yes agreed it will be interesting to see just how much more tax they get, this is why we mentioned that it's hard to believe that they are putting all their trust in foreign companies to collect it.

Why didn't they just get customs department to do this?

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Otagolad

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#2365697 3-Dec-2019 14:44

Interestingly, for the items that I've purchased from Amazon (USA) since Sunday, there has been no tax or import duties added and it is simply the shipping cost on top of the price of the goods (and the GST isn't in that amount as the shipping would be significantly higher) - i wonder what will happen when those goods arrive in NZ.

sleemanj

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#2367703 3-Dec-2019 15:17

Otagolad:

Interestingly, for the items that I've purchased from Amazon (USA) since Sunday, there has been no tax or import duties added and it is simply the shipping cost on top of the price of the goods (and the GST isn't in that amount as the shipping would be significantly higher) - i wonder what will happen when those goods arrive in NZ.

1. If the purchase was over $1000, that would be correct and customs will deal with it when it arrives.

2. If you are GST reg and had given Amazon your GST number back when the "netflix tax" changes were done a couple years back that maybe could explain it

3. Perhaps a timezone issue if you made the purchase Sunday 1st NZ. is Amazon used 1st December UTC, or even 1st December EST as the change-over that could explain it.

Anyway, if the purchase is under $1000, in theory, you've paid all you're going to pay it should come straight through.

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James Sleeman
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frankv

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#2367704 3-Dec-2019 15:24

floydbloke:

Elgin:

I wonder what percentage of GST collected by these foreign companies actually gets paid to IRD NZ? It's not as if IRD NZ are going to audit Amazon, Ebay or AliExpress to check their NZ sales figures.

Do you mean by error or are you suggesting these multinationals would consciously and deliberately commit tax-fraud (albeit not in their home countries)? I very much doubt the latter myself.

Do you mean that you would be surprised if a multinational committed tax fraud? A Google on those terms suggests that you shouldn't be.

Mind you, in NZ tax avoidance is so easy that fraud probably isn't worth the risk.

KrazyKid

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#2367713 3-Dec-2019 15:44

Otagolad:

Interestingly, for the items that I've purchased from Amazon (USA) since Sunday, there has been no tax or import duties added and it is simply the shipping cost on top of the price of the goods (and the GST isn't in that amount as the shipping would be significantly higher) - i wonder what will happen when those goods arrive in NZ.

My Amazon purchase on Sunday clearly had GST added (listed under tax to be collected).

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