GST on shipping charges for overseas purchases = theft

Forums › Off topic › GST on shipping charges for overseas purchases = theft

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#1305221 14-May-2015 15:35

bazzer:
heylinb4nz:
bazzer: The point is that the service is being provided to you in NZ. So there is GST on that. That's fair I think (insofar as GST is fair) since we pay GST on all goods and services in NZ.

As mentioned above, if you send something internationally you don't have to pay the GST (even though you would argue you should since some of the service is occurring in NZ).

It seems that for international shipping, quite a lot of the service is being provided in no-man's-land, so they make a call about how to categorise it, and they do that based on the destination.

The only portion of the service provided in NZ is delivery from Auckland Depot to my home, the majority of the service occurs outside of New Zealand and therefore should be exempt. Essentially the government are using a dirty piece of legislation to tax 100% of a service the majority of which occurs outside NZ.

I think a flat rate fee based on box size and weight range to get parcel from port of entry to destination would be fairer....but that would just be wishful thinking.

Well, that's just, like, your opinion, man. The service would be pretty useless without that last little bit that occurs in NZ though, wouldn't it?

I get that you're annoyed about it, and no amount of discussion will get you to see a different point of view. That's cool, but makes this thread a bit pointless.

What do you think of the fact that there is no GST on shipping out of NZ. How much of that shipping charge should be charged GST? Everything except the last little bit in the destination country?

Pretty sure last time I posted an international item at NZ post there was GST on the receipt. I can see what people are getting at though, I am based in NZ and I consumed the service therefore the GST applies to the service no matter how it was delivered and where.

SirHumphreyAppleby

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#1305240 14-May-2015 15:43

heylinb4nz: Pretty sure last time I posted an international item at NZ post there was GST on the receipt. I can see what people are getting at though, I am based in NZ and I consumed the service therefore the GST applies to the service no matter how it was delivered and where.

From https://www.nzpost.co.nz/sites/default/files/uploads/shared/standards-guides/adv543-international-services-postage-guide-excluding-gst.pdf

"Unless specified otherwise, required postage rates are GST zero rated. If paying by stamps please add GST, or refer to our GST inclusive postage guide."

notesgnome

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#1305250 14-May-2015 15:57

heylinb4nz:
bazzer: The point is that the service is being provided to you in NZ. So there is GST on that. That's fair I think (insofar as GST is fair) since we pay GST on all goods and services in NZ.

As mentioned above, if you send something internationally you don't have to pay the GST (even though you would argue you should since some of the service is occurring in NZ).

It seems that for international shipping, quite a lot of the service is being provided in no-man's-land, so they make a call about how to categorise it, and they do that based on the destination.

The only portion of the service provided in NZ is delivery from Auckland Depot to my home, the majority of the service occurs outside of New Zealand and therefore should be exempt. Essentially the government are using a dirty piece of legislation to tax 100% of a service the majority of which occurs outside NZ.

I think a flat rate fee based on box size and weight range to get parcel from port of entry to destination would be fairer....but that would just be wishful thinking.

Playing devil's advocate here.

By the same argument, we could say that all international flights should be GST free (the service provided is predominantly outside the airspace of NZ), similarly with cruises.

The retailers in NZ have already had to pay GST on their shipping, and have factored it into their costs (as I had to do when importing pallets of goods into NZ). Why should some people be exempt?

As people have said, everyone is entitled to their own opinion. I *think* the freight GST is the same around the world (i.e. the receiver pays the GST on the shipping, as we know the sendor isn't charging it, despite the fact it's them providing the service).

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#1305287 14-May-2015 16:52

so that people won't buy $1000 cars that cost $40,000 to ship?

Rikkitic

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#1305312 14-May-2015 17:14

Welcome to the club. I also just got caught out by that. I also was annoyed and I think it is unfair. In my case, I had to pay an extra $112 because I was $5.50 over the GST-free limit. That hardly seems reasonable. If you find a way to undo this, let me know so I can also claim it back. Otherwise I will applaud from the sidelines when you start the revolution.

Plesse igmore amd axxept applogies in adbance fir anu typos

frankv

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#1305323 14-May-2015 17:32

NB: You only pay GST on the last leg of shipping to NZ.... e.g. if the engine goes from New York to Los Angeles to NZ, you don't pay GST on the NY-LA shipping cost.

DaveB

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#1305332 14-May-2015 17:54

notesgnome:

Playing devil's advocate here.

By the same argument, we could say that all international flights should be GST free

If I understand it correctly, there is NO GST on international flights

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edge

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#1305341 14-May-2015 18:16

DaveB:
notesgnome:

Playing devil's advocate here.

By the same argument, we could say that all international flights should be GST free

If I understand it correctly, there is NO GST on international flights

Correct. From IRD:

Transport of people to and from New Zealand

Zero-rating applies to international transport and to any other services that form a part of it.

For the transport of passengers, these other services include the international journey and any air travel within New Zealand as long as it is:

part of the international carriage
booked at the same time as the international journey, and
provided through the same agent or supplier.

"It is useless to attempt to reason a man out of what he was never reasoned into."
— most commonly attributed to Jonathan Swift, author/theologian

Handle9

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#1305446 14-May-2015 20:22

edge: Correct. From IRD:

Transport of people to and from New Zealand
Zero-rating applies to international transport and to any other services that form a part of it.
For the transport of passengers, these other services include the international journey and any air travel within New Zealand as long as it is:

part of the international carriage

booked at the same time as the international journey, and

provided through the same agent or supplier.

Don't go coming in here with informed opinion and knowledge of what the law is. This thread is for making up law suits and howling at the moon.

It is hard to take this thread seriously when the OP clearly has no knowledge of what the law actually says.

Edit: typo and horrendous grammar from me.

jeffnz

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#1305449 14-May-2015 20:32

From memory (too tired to check) Customs site states you pay GST on entire amount of purchase and freight costs if over $400. It would behove the buyer to be familiar with purchasing overseas to save unpleasant surprises when they arrive. Caveat Emptor.

personally I'm surprised that a lot of people are still unaware of this given all the information available.

edit: omitted part of my point, time for bed methinks

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sbiddle

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#1305553 15-May-2015 06:48

Describing it as "theft" is taking things too far. Freight has always been included, and always will be.

Customs have gone to great lengths to educate people about GST and customs charges, which included launching the whatsmyduty website which very clearly explains the charging, and makes it incredibly simple to calculate actual charges.

The reason the NZ GST/VAT system is good is because it's very straight forward and isn't full of exclusions and exemptions that increase the complexity of the system. While you can argue all you want about whether freight costs should be included or not, the reality is nothing is going to change the law. If it did exclude freight you'd suddenly find customs declarations suddenly being skewed with high freight costs and lower product costs so people could avoid paying any changes.

BTR

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#1305569 15-May-2015 08:23

Either A buy your goods from NZ and put up with them being more expensive or B import them and pay less and have to pay GST on the shipping.

If you go with option B you are still probably paying less than option A. Build a bridge and get over it.

Bung

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#1305595 15-May-2015 09:18

frankv: NB: You only pay GST on the last leg of shipping to NZ.... e.g. if the engine goes from New York to Los Angeles to NZ, you don't pay GST on the NY-LA shipping cost.

What is your basis for that advice? All Custom's refences to imports just say freight and insurance costs not selected parts of either.

surfisup1000

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#1305612 15-May-2015 09:45

I can understand the disappointment of being whacked with unexpected charges and that can lead to such feelings as theft.

Our GST system is very good in that it is applied fairly uniformly across all things.

When people complain about having gst on goods such as healthy food I ask them which taxes they would like to increase to compensate for the loss of GST income.

Selective GST would result in increased compliance/admin/legal costs. End result-- average tax payable for each person is unchanged but prices for goods and services would increase slightly due to a less efficient tax system.

People should really be campaigning against wasteful government expenditure. It is disgraceful the amount of waste and bludging that goes on.

My rant over ha ha.

Mark

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#1305618 15-May-2015 09:52

Hmmm ... I wonder what "GST" stands for ? And from that information would I be able to work out what it would apply to ?

:-)

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