GST to be charged on purchases below $400

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#2067658 3-Aug-2018 18:21

Rikkitic:

A level playing field would also be eliminating GST on all domestic purchases under $400.

Not sure I follow that. Yes, you could do that, and cause the +$400 to have slightly higher GST. All to cater for a wealthy overseas company. Or, you could make it an even playing field by making the unchanged current GST to cover all eligible goods and services. Actually, it does already, the Amazons have escaped this to date as there was no mechanism to cater for it. But with todays technology, like Amazon's, it can be catered for. A bit of irony there. Netflix has no issue, neither does Apple. The issue is smaller overseas suppliers, to make it relatively easy. For Amazon its p?ss easy, they want to play hardball. So, a little surprised that you wish to follow the rich and famous to get an advantage over the masses.

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#2067667 3-Aug-2018 18:43

Amazon is going to have to charge sales tax based on the purchaser's state anyway so it can't be that much more difficult to charge GST? Especially when each state may have complex rules determining the amount of sales tax etc.

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#2067672 3-Aug-2018 18:51

Tzoi:

Amazon is going to have to charge sales tax based on the purchaser's state anyway so it can't be that much more difficult to charge GST? Especially when each state may have complex rules determining the amount of sales tax etc.

Thats right, NZ is just another state, no biggie. When they invent computer software, that will make it easier.... And that is the "no excuses" argument.

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#2067682 3-Aug-2018 19:03

tdgeek:

Rikkitic:

A level playing field would also be eliminating GST on all domestic purchases under $400.

Not sure I follow that. Yes, you could do that, and cause the +$400 to have slightly higher GST. All to cater for a wealthy overseas company. Or, you could make it an even playing field by making the unchanged current GST to cover all eligible goods and services. Actually, it does already, the Amazons have escaped this to date as there was no mechanism to cater for it. But with todays technology, like Amazon's, it can be catered for. A bit of irony there. Netflix has no issue, neither does Apple. The issue is smaller overseas suppliers, to make it relatively easy. For Amazon its p?ss easy, they want to play hardball. So, a little surprised that you wish to follow the rich and famous to get an advantage over the masses.

Not advocating, just saying. There are other ways of doing this.

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Rikkitic

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#2067683 3-Aug-2018 19:03

tdgeek:

Rikkitic:

A level playing field would also be eliminating GST on all domestic purchases under $400.

Not sure I follow that. Yes, you could do that, and cause the +$400 to have slightly higher GST. All to cater for a wealthy overseas company. Or, you could make it an even playing field by making the unchanged current GST to cover all eligible goods and services. Actually, it does already, the Amazons have escaped this to date as there was no mechanism to cater for it. But with todays technology, like Amazon's, it can be catered for. A bit of irony there. Netflix has no issue, neither does Apple. The issue is smaller overseas suppliers, to make it relatively easy. For Amazon its p?ss easy, they want to play hardball. So, a little surprised that you wish to follow the rich and famous to get an advantage over the masses.

Not advocating, just saying. There are other ways of doing this.

Plesse igmore amd axxept applogies in adbance fir anu typos

tdgeek

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#2067688 3-Aug-2018 19:09

Rikkitic:

tdgeek:

Rikkitic:

A level playing field would also be eliminating GST on all domestic purchases under $400.

Not sure I follow that. Yes, you could do that, and cause the +$400 to have slightly higher GST. All to cater for a wealthy overseas company. Or, you could make it an even playing field by making the unchanged current GST to cover all eligible goods and services. Actually, it does already, the Amazons have escaped this to date as there was no mechanism to cater for it. But with todays technology, like Amazon's, it can be catered for. A bit of irony there. Netflix has no issue, neither does Apple. The issue is smaller overseas suppliers, to make it relatively easy. For Amazon its p?ss easy, they want to play hardball. So, a little surprised that you wish to follow the rich and famous to get an advantage over the masses.

Not advocating, just saying. There are other ways of doing this.

Its always worth looking at all options. I agree. Especially financially there are many wats yo skin a car. Tax, another tax, a levy, includes this, but not that etc. But its 2018, calculating tax whatever type per country or state is easy. Its a global world, so easy to cater for each country's requirements. If globalisation went viral, as it will one day, the GST revenue would be fractured.

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#2067697 3-Aug-2018 19:16

I wonder if this has the potential to increase inflation in NZ, if people are forced to buy the same goods from NZ retailers at higher prices, if overseas retailers won't ship to NZ. The problem with that, is that that can lead to interest rate rises, which has knock on effects. My beef is that this wasn't a policy that was highlighted when parties were campaigning. Maybe National had suggested this as a potential policy in their last term, but they were voted out, and one reason for that may have been this type of policy.

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#2067699 3-Aug-2018 19:19

mattwnz:

I wonder if this has the potential to increase inflation in NZ, if people are forced to buy the same goods from NZ retailers at higher prices, if overseas retailers won't ship to NZ. The problem with that, is that that can lead to interest rate rises, which has knock on effects. My beef is that this wasn't a policy that was highlighted when parties were campaigning. Maybe National had suggested this as a potential policy in their last term, but they were voted out, and one reason for that may have been this type of policy.

NZ prices dont change. Personal small imports increase. Although they should have increased decades ago, but it wasnt policed, it was avoided. Legal avoidance is now being removed. I also doubt a widget from China or Amazon is in the basket of goods for CPI.

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#2067792 3-Aug-2018 21:07

So basically the NZ govt is passing a law that companies in other countries must obey. Does this not strike anyone as odd?

Would it be ok for another country to make a law that we here must obey?

We could instead charge GST on every import. Or no imports. Or place the onus upon citizens to faithfully report the value of imported goods as part of their annual tax return, with the occasional audit to keep the peasants in line.

Frankly, I'm satisfied with the status quo, and I'd up the the limit to $600 or $800 to reduce the cost of collecting it even further.

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#2067804 3-Aug-2018 21:11

irongarment: So basically the NZ govt is passing a law that companies in other countries must obey. Does this not strike anyone as odd?

Would it be ok for another country to make a law that we here must obey?

We could instead charge GST on every import. Or no imports. Or place the onus upon citizens to faithfully report the value of imported goods as part of their annual tax return, with the occasional audit to keep the peasants in line.

Frankly, I'm satisfied with the status quo, and I'd up the the limit to $600 or $800 to reduce the cost of collecting it even further.

If you ship something to any other country you already have to comply with their laws.

All this does is change the rules slightly.

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#2067806 3-Aug-2018 21:16

irongarment:

We could instead charge GST on every import.

We already do on every import.

We however don't collect the GST unless it's above the de minimis threshold.

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irongarment

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#2067815 3-Aug-2018 21:41

andrewNZ:
irongarment: So basically the NZ govt is passing a law that companies in other countries must obey. Does this not strike anyone as odd?

Would it be ok for another country to make a law that we here must obey?

We could instead charge GST on every import. Or no imports. Or place the onus upon citizens to faithfully report the value of imported goods as part of their annual tax return, with the occasional audit to keep the peasants in line.

Frankly, I'm satisfied with the status quo, and I'd up the the limit to $600 or $800 to reduce the cost of collecting it even further.

If you ship something to any other country you already have to comply with their laws.

All this does is change the rules slightly.

Nope. The importer must comply with the laws (because the importer is subject to local laws). The sender must comply only with his local laws. That's how laws work.

What the NZ govt is saying is "You over there, here is a law you must comply with. Collect our tax for us and send it to us. Kthxbye."

irongarment

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#2067816 3-Aug-2018 21:43

sbiddle:
irongarment:

We could instead charge GST on every import.

We already do on every import.

We however don't collect the GST unless it's above the de minimis threshold.

Indeed. You are right.

We also don't collect it if it slips through the cracks.