GST on imported goods still happening December 1st?

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Ultimate Geek
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#2376539 16-Dec-2019 19:02

tchart:

I had some parcels arrive at Youshop after the 1st. I had to update each parcel with the US value (including US shipping cost, which I thought was weird, but was zero for me anyway) and also upload a copy of the invoice

So you were charged GST on the freight charge as well?

dfnt

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#2381280 25-Dec-2019 20:48

Like youshop, MyUS are charging gst on the total value including shipping for goods sent to them

Why is it that forward shippers are collecting gst on the value of the item when they aren’t the ones who sold it in the first place?

sleemanj

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#2381352 25-Dec-2019 23:27

dfnt:
Why is it that forward shippers are collecting gst on the value of the item when they aren’t the ones who sold it in the first place?

Because the law requires them to.

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sbiddle

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#2381410 26-Dec-2019 08:37

sleemanj:

afe66: DHL have texted to say product delivered. I'm at work

The uk company I doubt has $nz50k worth business with nz.

So if customs aren't going to retrospectively bill me, I very much hope that customs aren't going to send a bill to uk company as I expect for such small business they will just say flag dealing with nz....

Under $1000 NZD, and seller not registered (nor on marketplace or sending via reshipper) so no GST to pay, IRD won't be sending you, or them, a bill.

For products between up to $1000 there is no requirement to pay GST if the seller is not GST registered and isn't legally required to be registered. Customs will not come after you as the law saws nothing needs to be paid.

This will mean a loss of existing GST revenue from goods $400 and over from sellers where customs would collect GST and/or duty and IETF fees. I wrote about this all in a blog post last month https://www.geekzone.co.nz/sbiddle/9012

I listened to Greg Harford from Retail NZ on the radio the other day talking about this change and he seems very positive about it still which seems very surprising. If I was a big retailer I'd still be up in arms that that the Government have introduced a law change that means all costs for biosecurity screening and customs clearance (which are supposed to be user pays services) along with duty are now being burdened onto big retailers, with anybody under $1000 now paying no duty and no contribution towards biosecurity and customs costs like they paid previously. I seriously don't think he realised that these changes have made importing goods much easier and simpler, and have actually made lots of imports cheaper than previously.

Geektastic

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#2381414 26-Dec-2019 09:13

Effectively the law will act to drive sub-$1000 sales to businesses that choose not to (or are not required to) register. That's it, mainly.

frankv

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#2381581 27-Dec-2019 06:59

Geektastic:

Effectively the law will act to drive sub-$1000 sales to businesses that choose not to (or are not required to) register. That's it, mainly.

Except that they will only be able to sell $60K per year. So less than two sales per week for near-$1K items.

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old3eyes

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#2381593 27-Dec-2019 07:54

frankv:
Geektastic:

Effectively the law will act to drive sub-$1000 sales to businesses that choose not to (or are not required to) register. That's it, mainly.

Except that they will only be able to sell $60K per year. So less than two sales per week for near-$1K items.

How would the NZ IRD know this by checking every item that comes into the country and counting them?

Regards,

Old3eyes

sbiddle

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#2381595 27-Dec-2019 07:57

old3eyes:
frankv:

Geektastic:

Effectively the law will act to drive sub-$1000 sales to businesses that choose not to (or are not required to) register. That's it, mainly.

Except that they will only be able to sell $60K per year. So less than two sales per week for near-$1K items.

How would the NZ IRD know this by checking every item that comes into the country and counting them?

A significant amount of monitoring of goods and addresses already takes place for various reasons. This would be pretty simple to do, especially since many declarations are already electronic.

richms

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#2381652 27-Dec-2019 10:47

old3eyes:

How would the NZ IRD know this by checking every item that comes into the country and counting them?

By asking the tax agency in the sending country to check it out.

Richard rich.ms

Oblivian

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#2386130 6-Jan-2020 14:35

Shall see if my purchase falls into the 'small fry' pot.

Just ordered 2 torches direct from a china supplier/maker - one of those ones that the market places all sell fakes of and so on. They have their own front end website as well as presence on some seller market places. However highly doubt they would break the 60K threshold. So will be similar to a market place purchase and assumption made it has been collected presumably. Minus any potential 'claimed/not' markings applied

During checkout they have fields asking for tax numbers, (even what you want the valuation to be..) or any further notes.

I assume anything through the big china market places since they come direct have no different labeling to indicate it's claimed. Other than the likes of Amazon housed stores where the label is printed by amazon and GST proof available to download/prove

Geektastic

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#2386221 6-Jan-2020 17:42

richms:
old3eyes:

How would the NZ IRD know this by checking every item that comes into the country and counting them?

By asking the tax agency in the sending country to check it out.

Because they have nothing better to do but enforce New Zealand tax rules on GST?

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richms

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#2386223 6-Jan-2020 17:51

Geektastic:

Because they have nothing better to do but enforce New Zealand tax rules on GST?

There are reciprocal agreements in place for most things, and there is something coming up where europe will be getting in on the same charging methods so you can expect more compliance not less going forwards.

Richard rich.ms

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Ultimate Geek
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#2386360 6-Jan-2020 21:59

An example Aliexpress order with (quite a lot) of shipping. GST is charged on both:

Geektastic

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#2386368 6-Jan-2020 22:29

richms:

Geektastic:

Because they have nothing better to do but enforce New Zealand tax rules on GST?

There are reciprocal agreements in place for most things, and there is something coming up where europe will be getting in on the same charging methods so you can expect more compliance not less going forwards.

The chances of small businesses elsewhere undergoing significant investigation for NZ GST is fairly remote even so, I suspect. The cost of the investigation is not likely to be something most tax departments (or the foreign taxpayers who fund them) would want to pay for unless they can get it back from NZ.

You would probably need to draw attention to yourself to come under scrutiny.

Tzoi

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#2386531 7-Jan-2020 11:51

It's more a "Hey country X, can you please send an information request to company Y about their sales to NZ and forward the response to us? Thanks" rather than any form of significant investigation.

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