GST to be charged on purchases below $400

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#2005639 1-May-2018 09:11

surfisup1000:

Yep, I see that argument and how it might feel like a new tax.

But, GST was always supposed to be paid on those sub $400 items. They just haven't been collecting it.

I think most people will perceive this as a new tax. And perceptions count at elections!

It is a new tax, because the tax is imposed on foreign businesses where previously it was not. The fact that residents had a theoretical tax liability which was not realised, is immaterial.

wellygary

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#2005644 1-May-2018 09:15

sbiddle:

How is it fair that IETF and processing fees are slashed on goods under $400 but that you'll have to pay over $400?

This,

Its not the GST being imposed that will be the interesting point of the announcement, it will be whether there is some goods that escape the EITF and other fees, and how this is justified...

Stu

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#2005647 1-May-2018 09:15

I've been through and cleaned up a few posts. Please remember to be respectful to any and all entities and individuals. As per the FUG "When talking about a company use their real name. We follow the principle that respect must go both ways."

This also applies to political parties etc. Please keep it civilised, folks.

People often mistake me for an adult because of my age.

Keep calm, and carry on posting.

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prob

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#2005649 1-May-2018 09:17

My concern is not so much the tax, but that overseas suppliers will stop sending things to NZ. Collecting the tax will be too much bother. Will Aliexpress still work?

MikeB4

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#2005658 1-May-2018 09:33

surfisup1000:

MikeB4:

If the bricks and morter stores were to go the resulting unemployment would crippple our economy and be socially devastating.There is in excess of 260,000 people directly employed in retail and probably that again in related and dependent businesses.

Sooner the better . These people can retrain and move into jobs that have way higher productivity than peddling shoes and cheap tv's.

No one would be exempt from the affects including you. This would deeply and profoundly impact NZ society. I was working in Social Services in the 80s during the motor industry and meat industry reforms. Loss of the retail sector would make that seem insignificant. New Zealand is still dealing with the social impact of that and believe me it was profound. Unemployment would reach into every sector in NZ and there would be no jobs for these folks to move into no matter how they retrained.

Here is a crazy notion, lets give peace a chance.

marej

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#2005662 1-May-2018 09:38

prob:

My concern is not so much the tax, but that overseas suppliers will stop sending things to NZ. Collecting the tax will be too much bother. Will Aliexpress still work?

Precisely - unintended consequences. Its not going to be worth it for the smaller traders to invest in updating their systems and add the overhead of GST compliance to their businesses.

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Stu

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#2005664 1-May-2018 09:39

prob:

My concern is not so much the tax, but that overseas suppliers will stop sending things to NZ. Collecting the tax will be too much bother. Will Aliexpress still work?

My thoughts also.

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Benjip

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#2005666 1-May-2018 09:42

prob:

My concern is not so much the tax, but that overseas suppliers will stop sending things to NZ. Collecting the tax will be too much bother. Will Aliexpress still work?

I think it'll depend on how much business they have in NZ. I imagine the likes of Amazon and AliExpress will definitely play ball, as we probably bring in a few million per year. It probably seems insignificant in terms of their overall business, but if it costs them $200,000 per year to comply with the IRD and they make $10,000,000 from it, it's a no-brainer.

I'm also fairly sure this won't apply to small online retailers (for some reason a figure of $60,000 NZD is stuck in my head – was that the rule for the Netflix tax?).

MikeB4

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#2005667 1-May-2018 09:42

Stu:

prob:

My concern is not so much the tax, but that overseas suppliers will stop sending things to NZ. Collecting the tax will be too much bother. Will Aliexpress still work?

My thoughts also.

I can remember similar being said when GST was first brought in, the issues were worked through and it was business as usual. Actually GST is easier to administer than the multitude of import levies and other border costs.

Here is a crazy notion, lets give peace a chance.

Coil

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#2005674 1-May-2018 09:46

So to get it 100% straight, They Govt wants to work with retailers and say me buying a (For the sake of it) $80 watch from a listing on an Aussie site will I get GST at the border?
I understand not with the book analogy prior.

What about TradeMe listings in Aussie or drop shippers. How do they pay GST? Do we pay it at the border or does the vendor pay it or does trademe now have to collect on behalf??

Stu

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#2005675 1-May-2018 09:50

Same way as Netflix et al do now, according to the article mentioned in the OP. They have a choice, and can stop shipping to NZ if they deem it too much of a hassle.

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#2005676 1-May-2018 09:50

Sorry but it is a new tax, if i can buy an item under $400 now without having to pay GST and then in 12 months the same item is 15% more then that is a new tax because it wasn't there before.

Look at it this way, a pub sells 3 brands of beer and they decide to add a 4th brand, it doesn't matter what its called or tastes like its still beer and they have added another beer to the tap.

Using the arguement that its GST so it doesn't count is bulls*t as far as im concerned. The amount its going to recoup is minimal i.e. less than 100 million so really whats the point.....

SirHumphreyAppleby

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#2005708 1-May-2018 10:02

Benjip:

I think it'll depend on how much business they have in NZ. I imagine the likes of Amazon and AliExpress will definitely play ball, as we probably bring in a few million per year

Depending on how the bill is implemented, they may stand to make a killing off it. Amazon Marketplace, AliExpress, and eBay may not even be liable for GST on purchases, as they're not the sellers. They provide a market place to sell and/or escrow services. Will they collect the tax on behalf of sellers? Almost certainly. Will they pay it to the NZ government if that seller doesn't exceed the limit? Highly unlikely. Will they return it to customers? Not a chance.

shk292

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#2005710 1-May-2018 10:03

Interesting questions:

- What about random small sellers on Ebay etc - presumably they won't be aware of this and won't be able to or care about charging GST? Quite a good loophole if so

- What happens with youshop? I can see Amazon knowing that youshop=NZ and therefore charging GST, but the same may not apply for other US/UK retailers

As said above, it's not a great deal of money - the worst effect will be if the number of items available to be delivered to NZ goes down

Geektastic

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#2005712 1-May-2018 10:08

If you're GST registered, several businesses overseas (eg Adobe) don't collect GST.

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