GST to be charged on purchases below $400

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#2005939 1-May-2018 12:48

Geektastic: What would they do if Amazon just laughed and said “On yer bike!” I wonder?

I would imagine all Amazon packages would be stopped at the border and not released until you paid the GST. There is perhaps an even chance that you would need to personally visit the port in Auckland, carrying three forms of ID, two utility bills and pay by cheque. You will also need to return at least once because it was actually bought using a credit card in your partner's name and your partner hasn't given written authority in triplicate for customs to discuss this box with you, witnessed by a JP under the light of a full moon. Even though your name and cell number are written on the box.

i.e. While no skin off Amazon's nose, Amazon's buyers would have a painful shopping experience. Whereas a box from perhaps Walmart (which has collected GST on Custom's behalf) would sail through unimpeded. Where would you buy from next time?

Amazon is very good about showing customers up front about the likely tax to be imposed by the Gummint under whose dictates you happen to live. Different US States have different rates of sales tax and Amazon has fought and lost that fight previously.

Does raise an interesting query about whether Amazon Marketplace / Aliexpress merchants (individually under 60K) would be subject to the tax.

Fred99

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#2005944 1-May-2018 12:51

networkn:

Yes, I would have felt the exact same way. Lying is lying regardless of who is doing it.

To be fair, JA is responsible for some of the biggest lies in the last year. She also promised greater honesty and transparency, none of which we have. In fact it's worse than it was before.

There is a big hole, Labour are filling it with money they lied to obtain, such as all these new taxes. If they weren't generating all this extra income, what do you think that hole looks like?

On your logic, pretty much Labour has carte blance to increase taxes to whatever they want so long as they don't call it something new. Income tax could go up by 5% and that would be ok, because it's not a new tax.

You didn't pay it before, you pay it now, it's new. End of story. They lied. Again. You can make yourself feel better about it however you like, facts remain.

Don't you have an open thread in the Politics forum where you can put all the above?

This thread might be more informative for those interested in what the policy is and how it's going to affect us, without having to plow through partisan political rants to find it.

networkn

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#2005946 1-May-2018 12:53

Fred99:

networkn:

Yes, I would have felt the exact same way. Lying is lying regardless of who is doing it.

To be fair, JA is responsible for some of the biggest lies in the last year. She also promised greater honesty and transparency, none of which we have. In fact it's worse than it was before.

There is a big hole, Labour are filling it with money they lied to obtain, such as all these new taxes. If they weren't generating all this extra income, what do you think that hole looks like?

On your logic, pretty much Labour has carte blance to increase taxes to whatever they want so long as they don't call it something new. Income tax could go up by 5% and that would be ok, because it's not a new tax.

You didn't pay it before, you pay it now, it's new. End of story. They lied. Again. You can make yourself feel better about it however you like, facts remain.

Don't you have an open thread in the Politics forum where you can put all the above?

This thread might be more informative for those interested in what the policy is and how it's going to affect us, without having to plow through partisan political rants to find it.

I was asked the question in this thread, I answered in this thread. I am also discussing the policy and how it affects us.

It's kinda funny you making a dig about political rants.

rayonline

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#2005953 1-May-2018 12:59

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

The news article today says small sellers on eBay etc .. will still have to do it because they fall under the umbrella of eBay.

The exception is if you are directing buying off a small seller.

https://www.stuff.co.nz/business/industries/103516025/amazon-tax-what-it-means-for-online-shopping

AND IF I BUY SOMETHING FROM A SMALL TRADER THROUGH THE LIKES OF EBAY OR ALIBABA?

Online marketplaces will be treated like large foreign sellers, even if they are just the "middleman". So the operators of those sorts of marketplaces will be responsible for adding GST to your bill, even if the final seller is actually a small trader.

Fred99

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#2005956 1-May-2018 13:03

networkn:

It's kinda funny you making a dig about political rants.

Yes it's hilarious - I know where to put it - which is not here.

loceff13

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#2005963 1-May-2018 13:13

I was under the impression NZ Customs internal studies had said collection on items at the proposed >$200 would be unfeasible at the border with the increased volume(even with new sorting facilities planned). Digital sales tax it will make money, tax on physical items I'm yet to see any statements that it will be viable.

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dafman

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#2005968 1-May-2018 13:16

networkn:

There is a big hole, Labour are filling it with money they lied to obtain, such as all these new taxes. If they weren't generating all this extra income, what do you think that hole looks like?

Grant Robertson today said that the upcoming budget will provide a surplus. I'm happy to wait and see the detail, but I'm guessing there need not be a 'hole' lot of worry about unsubstantiated claims around government spending.

mattwnz

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#2005974 1-May-2018 13:24

scuwp:
timmmay:

Coil:

I thought that Labour was not adding any further taxes along with a whole raft of other broken election promises lol.

I heard on the radio labor are saying something like "National planned this so it's not counted as a tax labor introduced", or something along those lines.

"It's not a new tax...it's an extension of an existing tax to cover a wider range of the market and therefore introduce fairness that was lacking under the previous government"

or something like that...I should have been a politician :-)

Except I recall labour supporters used that arguement the other way around when why said a National had brought in lots of new taxes. Even the gst rise wasn’t s new tax, it was an extension to an existing tax This combined with not bringing in the 10 dollar reduction in the cost of doctors visits by the 1st of July, which was an election promise. Politians need to be held to account.

Guessing this could increase inflation quite a bit, which could increase interest rates, which could make it more difficult for people to service their mortgage. But that could lead to house price stagnation or price falls. So maybe this is one way they are trying to fix the house price problem.

rayonline

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#2005979 1-May-2018 13:31

loceff13:
I was under the impression NZ Customs internal studies had said collection on items at the proposed >$200 would be unfeasible at the border with the increased volume(even with new sorting facilities planned). Digital sales tax it will make money, tax on physical items I'm yet to see any statements that it will be viable.

Customs not doing this. It will be done by sellers directly with ird (?). Gst added at ebay payment. Not sure what happens with those over 400. It says customs will do as before so that means custom will police the 15% import tax at border so the seller don't need to add gst then?

Paul1977

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#2005985 1-May-2018 13:50

sbiddle:

I don't see how it's fair that a $399 product that will now incur duty and/or GST will be exempt from this, but a $401 product that has always incurred GST and/or duty will still continue to pay those same fees. They are fees that should be paid by everybody, and if they were would subsequently reduced in value for everybody paying them.

I doubt they are actually changing the threshold to exactly $400, I'd say the threshold will continue to be when duty + GST >= $60. The article would have just said $400 to make it easier for casual readers to understand.

I would be extremely surprised if there were things that incurred fees/taxes now that won't under any proposed new scheme.

robjg63

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#2005992 1-May-2018 13:52

Right you lot - Stop all your fighting!

Go outside and play nice.

Now!

Don't make me go and get the wooden spoon!

Nothing is impossible for the man who doesn't have to do it himself - A. H. Weiler

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dafman

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#2006005 1-May-2018 14:05

robjg63:

Right you lot - Stop all your fighting!

Go outside and play nice.

Now!

Don't make me go and get the wooden spoon!

Best get it now, before it goes up to $1.20!

rayonline

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#2006006 1-May-2018 14:06

Does this mean that businesses can now claim expenses from overseas purchases? There is a GST invoice right ...

Bit perplexed about those under $400 will be charged GST, those over $400 won't be and continue to be taxed at border. GST 15% is import tax 15% other than duties to certain goods. Wouldn't a single rule be easier ....

Talkiet

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#2006013 1-May-2018 14:19

Bring it on. This completely legitimises all my China purchases. [sarcasm] With GST being added surely that will bring parity to the market and the local retailers will be competing on an equal footing. [/sarcasm]

In all seriousness though, this does legitimise purchasing from overseas. Now unfortunately the retailers will begin complaining about something else and asking for massive taxes in imports to make them less attractive. Let's hope our Taxhappy govt doesn't heed their calls before we vote them out.

Cheers - N

Please note all comments are from my own brain and don't necessarily represent the position or opinions of my employer, previous employers, colleagues, friends or pets.

Geektastic

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#2006014 1-May-2018 14:21

And the real reason is....

“The Government estimates the proposal will be able to collect $53 million in revenue in 2019/20, $78 million in 2020/21 and $87 million in 2021/22.”

Nothing to do with the unicorn of fairness.

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