GST on imported goods still happening December 1st?

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#2348503 5-Nov-2019 15:50

And now I see the IRD site says 'From 1 December 2019 overseas businesses must collect GST on low-value goods', so maybe Black Friday is OK ? Well that makes it much clearer...

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#2348516 5-Nov-2019 16:26

networkn:

So what I am trying to determine, is right now, if your order exceeds $400 NZD, not only will you pay GST as it comes in but you will pay around $130 in additional fees.

After the change, for items under $1000 will attract GST from the first dollar, but no $130 fees?

Correct. And if you're buying clothing worth more than ~$230 or so that would have previously incurred GST, duty and IETF you will now just pay 15% GST.

This means clothing purchases between $230 and $999 will be cheaper than at present, and general goods between $400 and $999 will also be cheaper.

I'm waiting for retailers to realise this and start complaining the new system isn't fair..

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#2348519 5-Nov-2019 16:40

sbiddle:

networkn:

So what I am trying to determine, is right now, if your order exceeds $400 NZD, not only will you pay GST as it comes in but you will pay around $130 in additional fees.

After the change, for items under $1000 will attract GST from the first dollar, but no $130 fees?

Correct. And if you're buying clothing worth more than ~$230 or so that would have previously incurred GST, duty and IETF you will now just pay 15% GST.

This means clothing purchases between $230 and $999 will be cheaper than at present, and general goods between $400 and $999 will also be cheaper.

I'm waiting for retailers to realise this and start complaining the new system isn't fair..

been wondering about how that's better for the retailers. i actually thought i must have misunderstood how it's supposed to work.

thanks for the confirmation.

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#2348528 5-Nov-2019 17:31

From 1 December 2019, all items purchased from overseas and shipped to your YouShop address will have 15% Goods & Services Tax (GST) applied. GST will be charged on the total value of the goods and YouShop services purchased.

As we come up to our busiest time of year, we will do our best to ensure all your parcels are processed in a timely manner, but check out the info below to make the most of your YouShop address. Please note that from time to time, delays may occur beyond our control and these dates are a guideline only.

20th November
Pay for your YouShop services by 11.59pm (NZT) 20th November and your parcel is likely to be subject to the current GST rules at the time of customs and border clearance.

30th November
If you pay for your YouShop services by the 30th November you will not be charged GST on the YouShop services, however the parcel itself may be subject to new GST rules if it reaches customs and border clearance after 00.01 1st December.

1st December onwards
Any parcels with YouShop services paid for after 00.01 1st December will be subject to the new rules and attract GST on the value of the items and all associated services and shipping costs.

Want more information?
The New Zealand Government has released a comprehensive Q&A that explains these changes and the rationale behind them in greater detail. You can read this here.

grimwulf

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#2348929 6-Nov-2019 12:13

Realise this is reigniting an older thread, but wanted to clarify my understanding - and I'm referring to the NZ Customs site here :- https://www.customs.govt.nz/about-us/news/important-notices/new-gst-rules-for-low-value-imported-goods/

From December 1st, goods purchased overseas that are valued below $1000 incur only GST, and no additional fees on import. (Note this is the customs value of the goods - shipping costs and insurance and other fees don't apply to this value).

If the overseas retailer cannot, will not or simply does not charge you GST on said items, then you don't pay any - i.e. when it arrives at Customs that is simply written off.

Also doesn't matter whether there's a single item or multiple items in the package - if the combined value > $1000 NZ - then it's GST + Fees, if its < $1000 NZ then it's just GST. Same rules seem to apply on gaming this system - get caught out and you'll be stung.

So :-

The threshold raises from (NZ$400/US$255) to (NZ$1000/US$638) ish (obviously fluctuates with exchange rate).
Below the threshold now pay GST - only if the overseas retailer collects it.
Breaching the threshold still applies GST + bunch of customs fees.

Overall whilst more GST is collected, it's actually much simpler and cheaper to buy sub <NZ$1000 worth of items from overseas from Dec 1.

I imagine this is a real lesson for NZ retailers on the laws of unintended consequences - it'll be far more attractive for consumers to import from overseas with the new regime - even if the overseas vendor collects GST.

If the overseas vendor doesn't collect GST, then it's a no brainer.

Did I get any of that wrong? I can't imagine this was what NZ retailers actually wanted?

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#2348973 6-Nov-2019 12:37

As an example I have just bought all the “stuff” to make a wire balustrade around a new deck. Amazon cost was just over 120 NZ. Even with GST still a lot cheaper than sourcing in NZ at just under 300.

The only winner is the taxman.

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#2348974 6-Nov-2019 12:38

I got the YouShop email as well. However, I have never had to use their service. The overseas store happily sent stuff to NZ for reasonable freight cost.

Question - orders before December and if they arrive into NZ after the 1st of December. What items will be charged for? A $5NZ package? Also, what about smaller overseas companies who might not be in a position to implement changes - like owner operated businesses.

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#2348975 6-Nov-2019 12:49

If the overseas business sells less than $60k/year to NZ, then it doesn't need to do anything. If the items are less than $1000 then no GST will be collected.

rayonline

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#2348976 6-Nov-2019 12:52

Behodar:

If the overseas business sells less than $60k/year to NZ, then it doesn't need to do anything. If the items are less than $1000 then no GST will be collected.

Thanks. $1,000 value now? I thought if 15% GST was $50NZ I had to pay GST or is this changed?

KrazyKid

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#2348989 6-Nov-2019 13:28

I just looked into this today trying to decide if I should stock up.

My understanding is:

From the 1st Dec onwards...

The Seller collects the GST if they registered with the NZ IRD (for what ever reason) .

Not all sellers will register but expect main marketplaces (Ebay, Ali express, Amazon etc) and plenty of others to do so.

As a matter of course at the border customers will not stop shipments with a value of under $1000. They expect the seller to have collected the GST.
The $1000 limit is in place as at that point you pay duty.

All goods imported with a value over $1000 will be charged GST (and Duty). Your goods will be held at the border until you pay if you don't have other arrangements in place.
If you can show you have already paid GST with the seller at the time of purchase you will not be charged GST a second time.

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#2348993 6-Nov-2019 13:44

grimwulf:.

I imagine this is a real lesson for NZ retailers on the laws of unintended consequences - it'll be far more attractive for consumers to import from overseas with the new regime - even if the overseas vendor collects GST.

If the overseas vendor doesn't collect GST, then it's a no brainer.

Did I get any of that wrong? I can't imagine this was what NZ retailers actually wanted?

I could never understand why retailers were so excited about the changes. I suspect those jumping up and down about the current situation and how unfair it was weren't actually smart enough to read up and understand what the proposed changes were.

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#2349004 6-Nov-2019 14:02

Behodar:

If the overseas business sells less than $60k/year to NZ, then it doesn't need to do anything. If the items are less than $1000 then no GST will be collected.

I got the impression from the email that anything going thru YouShop will be charged GST.

Regards,

Old3eyes

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#2349006 6-Nov-2019 14:15

old3eyes:

Behodar:

If the overseas business sells less than $60k/year to NZ, then it doesn't need to do anything. If the items are less than $1000 then no GST will be collected.

I got the impression from the email that anything going thru YouShop will be charged GST.

Yes, you will be. As you *should* be for anything else you buy from a retailer that does over $60,000 worth of business to NZ customers a year. Amazon will be. AliX? Not sure, but probably.

grimwulf

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#2349007 6-Nov-2019 14:19

I'm just anticipating the complaints and wailing on various media in early December when NZ retailers wake up and realise that for the vast majority of purchases*, it will be significantly cheaper and easier** to purchase overseas - even if GST is paid, which is not guaranteed.

* Vast majority of overseas purchases are < NZ$1000 (generally because shipping/insurance/warranty reasons.) Personally I've purchased a bunch of stuff for a few hundy, but anything above a G would definitely give me pause.

** the raise in threshold opens up far more product lines for import that otherwise would have been prohibitive due to the previous lower threshold (and associated duties/fees).

** In addition, the switch to the value declaration and exclusion of shipping cost/insurance/fees etc - meaning no calculations are necessary make things much more straight forward for us regular folk to understand.

The only slightly non-deterministic factor might be fluctuations in the exchange rate (which Customs publish every two weeks here). But given these are published in advance - there's opportunity for some minor arbitrage ;).

Regarding YouShop, I don't think they have anything to do with it - GST is collected by the overseas seller, or not.

YouShop simply onward ship your package and have a role in customs declaration - that's it. Just different paperwork for above or below the threshold.

Edit: forgot link for Customs exchange rates.

trig42

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#2349008 6-Nov-2019 14:23

grimwulf:

I'm just anticipating the complaints and wailing on various media in early December when NZ retailers wake up and realise that for the vast majority of purchases*, it will be significantly cheaper and easier** to purchase overseas - even if GST is paid, which is not guaranteed.

* Vast majority of overseas purchases are < NZ$1000 (generally because shipping/insurance/warranty reasons.) Personally I've purchased a bunch of stuff for a few hundy, but anything above a G would definitely give me pause.

** the raise in threshold opens up far more product lines for import that otherwise would have been prohibitive due to the previous lower threshold (and associated duties/fees).

** In addition, the switch to the value declaration and exclusion of shipping cost/insurance/fees etc - meaning no calculations are necessary make things much more straight forward for us regular folk to understand.

The only slightly non-deterministic factor might be fluctuations in the exchange rate (which Customs publish every two weeks here). But given these are published in advance - there's opportunity for some minor arbitrage ;).

Regarding YouShop, I don't think they have anything to do with it - GST is collected by the overseas seller, or not.

YouShop simply onward ship your package and have a role in customs declaration - that's it. Just different paperwork for above or below the threshold.

Edit: forgot link for Customs exchange rates.

Youshop will charge you the GST, because as far as the retailer that has sent your stuff to them is concerned, you are not in NZ. Youshop will collect the GST from you. Any forwarder should.

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