GST to be charged on purchases below $400

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#2005713 1-May-2018 10:09

shk292:
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

From "not many" to "even fewer"?!

Geektastic

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#2005715 1-May-2018 10:12

Stu:
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.

It seems the happiness of the New Zealand consumer is not a concern of the government then.

Note to Jacinda: all voters are consumers...!

dafman

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#2005716 1-May-2018 10:14

surfisup1000:

old3eyes:

GST is not a new tax but adding to to items under $400 is a new tax..

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

GST was always supposed to be paid on those sub $400 items. They just haven't been collecting it. So it is not technically a new tax or an increase in existing taxes.

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

The election is 2.5 years away. GST on sub $400 internet imports will be distant memory by then.

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#2005718 1-May-2018 10:15

Geektastic:
Stu:

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.

It seems the happiness of the New Zealand consumer is not a concern of the government then.

Note to Jacinda: all voters are consumers...!

You should CC Judith Collins in your note, as it was her recommendation to Cabinet last year that got the ball rolling.

Oriphix

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#2005724 1-May-2018 10:17

I would gladly buy in NZ however the retailers are ripping us off with the mark ups on items.
If they can match online prices I am game but until they sort it that out its not going to happen.
This just further restricts the consumers getting the better deal.

Here is a thought since they are getting this extra now how about not implementing the fuel tax? ha!

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#2005728 1-May-2018 10:19

amazon tax now? ergh.

how long till the aliexpress tax?

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#2005753 1-May-2018 10:29

Oriphix: I would gladly buy in NZ however the retailers are ripping us off with the mark ups on items.
If they can match online prices I am game but until they sort it that out its not going to happen.
This just further restricts the consumers getting the better deal.

Here is a thought since they are getting this extra now how about not implementing the fuel tax? ha!

1. Lets ban markups

2. Cant match online prices as online doesn't have the same costs

3. How does the GST restrict consumers getting a better deal? The lack of GST has to date allowed a false cheaper deal. Everyone else charges you GST, but online doesn't. Now it will, and be a level playing field

Simple and standard.

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#2005777 1-May-2018 10:46

I heard Apple paid no tax last year. I wonder how many i-everything NZers bought last year, sending money overseas. So we're going to apply GST on a $10 hdmi cable to make up for that?

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#2005785 1-May-2018 10:52

It will encourage NZ retailers to increase prices by up to almost 15%

Will it not?

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#2005789 1-May-2018 10:58

Batman: I heard Apple paid no tax last year. I wonder how many i-everything NZers bought last year, sending money overseas. So we're going to apply GST on a $10 hdmi cable to make up for that?

I'm fairly sure Apple's NZ division would've paid millions in GST, as they definitely collect it. Where would we find out?

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#2005801 1-May-2018 11:00

Batman: I heard Apple paid no tax last year. I wonder how many i-everything NZers bought last year, sending money overseas. So we're going to apply GST on a $10 hdmi cable to make up for that?

Apple charges GST here

Do purchases of all phones/computers etc keep the money in NZ? No, it all goes overseas. We dont make them, like many things we buy here

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#2005802 1-May-2018 11:00

shk292:

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

Small sellers (under $60,000 worth of sales into NZ) will not be required to register for GST or collect it. This is the same strategy used by Australia.

At the end of the day this is a strategy to target big sellers. It's simply not possible to collect it from all sellers.

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#2005803 1-May-2018 11:01

Couple of interesting facts I have found reading about this over morning tea:

1) Labour has promised not to introduce "new" taxes in its first term of government, but former revenue spokesman Michael Wood made it clear before the election that did not rule out it extending GST to overseas purchases.

2) A Cabinet paper prepared by the former National government, which was released by Nash under the Official Information Act in February, also suggested introducing the Amazon tax in October next year.

tdgeek

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#2005805 1-May-2018 11:02

Azzura:

It will encourage NZ retailers to increase prices by up to almost 15%

Will it not?

No. Their prices are already 15% higher as they have to charge GST. They give the GST to the Govt so its not a cost, but its a cost to the consumer

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#2005806 1-May-2018 11:02

It doesn't matter. Even with 15% and duties some products (and variety) will still look better than NZ retail prices.

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