GST to be charged on purchases below $400

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20164 posts

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#2006021 1-May-2018 14:27

Didn’t they say that any new or extended taxes would be discussed with the tax working group? And then voters would have the chance to vote for them at the next election? Where’s the ‘conversation’ with the people on this and why wasn’t it one of their election policies? National rose gst not long after they got in and it wasn’t a policy, and they got quite a bit of stick for it, but they blamed the GFC, even though they never reduced it.

Paul1977

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#2006031 1-May-2018 14:39

rayonline:

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 ....

Still liable for GST for stuff over $400. Or do you mean the retailer pays GST for <$400 purchases at time of purchase, but >$400 purchases GST is collected at the border instead (along with duties, bio security etc)?

rayonline

1734 posts

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#2006035 1-May-2018 14:43

Paul1977:

rayonline:

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 ....

Still liable for GST for stuff over $400. Or do you mean the retailer pays GST for <$400 purchases at time of purchase, but >$400 purchases GST is collected at the border instead (along with duties, bio security etc)?

Yes more the latter.

If they are collecting GST for those <$400 why not collect it for all purchases. Haven't thought of the duties etc ... either at border or at purchase. Not all goods will attract duties.

Rikkitic

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#2006036 1-May-2018 14:43

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.

I withdrew from the JA thread because I was fed up with the poisonous rabid right rants there from you and your gang of four. Don't infect every other thread on Geekzone with your obsessions. Everyone here is perfectly capable of working out for themselves what the government is doing and what they think about it. They don't need your constant reminders. You have already taken over one thread with your ceaseless shouting. Leave it at that.

And just for your information (and that of your handful of followers), I still prefer this government to any National-led one I have ever experienced. Even if you were right that it is dishonest, incompetent, and hopeless, I would still prefer it.

Plesse igmore amd axxept applogies in adbance fir anu typos

gzt

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#2006038 1-May-2018 14:47

I don't see this making a big difference to retailers for the most part. The bookshop launch is kind of silly as there is no way 12.5% even comes close to direct shipping price difference.

Phone importers and retailers will be happy. The rest I don't see 12.5% making much difference. That said I agree completely with this regulatory change. It is logical.

Practical? Probably is for revenue purposes..

Paul1977

5052 posts

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#2006040 1-May-2018 14:50

gzt: I don't see this making a big difference to retailers for the most part. The bookshop launch is kind of silly as there is no way 12.5% even comes close to direct shipping price difference.

Phone importers and retailers will be happy. The rest I don't see 12.5% making much difference. That said I agree completely with this regulatory change. It is logical.

Practical? Probably is for revenue purposes..

GST hasn't been 12.5% for nearly 8 years.

sbiddle

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#2006048 1-May-2018 15:01

It's interesting removing duty from purchases under $400 but adding GST. This means for clothing/shoes above $220 (and under $400) that the government will lose their current 10% duty, IETF and biosecurity charges and instead only get their GST.

This will actually mean it's cheaper under some circumstances to import products with the changes than what it is at present.

Sharesies

Trade NZ and US shares and funds with Sharesies (affiliate link).

tdgeek

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#2006051 1-May-2018 15:05

rayonline:

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 ....

GST is not an expense

You can claim a business expense right now. GST isnt an import tax its a consumption tax.

Did you pay GST on the German dishwasher you bought? Yes. Also on the kiwi made product you bought too. Consumption tax

tdgeek

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#2006056 1-May-2018 15:09

sbiddle:

It's interesting removing duty from purchases under $400 but adding GST. This means for clothing/shoes above $220 (and under $400) that the government will lose their current 10% duty, IETF and biosecurity charges and instead only get their GST.

This will actually mean it's cheaper under some circumstances to import products with the changes than what it is at present.

Which shows that its not revenue gathering for the sake of it, its about level playing fields, and not charging the other charges if its not fair.

rayonline

1734 posts

Uber Geek

#2006070 1-May-2018 15:30

tdgeek:

rayonline:

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 ....

GST is not an expense

You can claim a business expense right now. GST isnt an import tax its a consumption tax.

Did you pay GST on the German dishwasher you bought? Yes. Also on the kiwi made product you bought too. Consumption tax

I didn't know one could buy stuff from overseas like a work phone and then claim the excluding GST price as expense. I thought it had to be in NZ.

Ok .. with GST when this comes into force this can part of the "GST Return".

Hammerer

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#2006076 1-May-2018 15:40

Rikkitic:

I withdrew from the JA thread because I was fed up with the poisonous rabid right rants there from you and your gang of four. Don't infect every other thread on Geekzone with your obsessions. Everyone here is perfectly capable of working out for themselves what the government is doing and what they think about it. They don't need your constant reminders. You have already taken over one thread with your ceaseless shouting. Leave it at that.

And just for your information (and that of your handful of followers), I still prefer this government to any National-led one I have ever experienced. Even if you were right that it is dishonest, incompetent, and hopeless, I would still prefer it.

Why would you say that?

I really don't care whether "left" or "right" are the government but I do care about specific actions. Saying that you would support the party in government being dishonest, incompetent, and hopeless is much more "rabid" than anything I've read @networkn say.

That sort of "rabid" thinking was behind British socialists denying millions of deaths and state-run repression in Soviet Russia even when they had witnessed specific acts at first hand. That's the sort of rabid thinking that gifts government to extremely dangerous organisations.

How about you leave it out!?

tdgeek

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#2006080 1-May-2018 15:43

rayonline:
tdgeek:

rayonline:

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 ....

GST is not an expense

You can claim a business expense right now. GST isnt an import tax its a consumption tax.

Did you pay GST on the German dishwasher you bought? Yes. Also on the kiwi made product you bought too. Consumption tax

I didn't know one could buy stuff from overseas like a work phone and then claim the excluding GST price as expense. I thought it had to be in NZ.

Ok .. with GST when this comes into force this can part of the "GST Return".

If it’s business

rayonline

1734 posts

Uber Geek

#2006086 1-May-2018 15:45

tdgeek:
rayonline:

tdgeek:

rayonline:

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 ....

GST is not an expense

You can claim a business expense right now. GST isnt an import tax its a consumption tax.

Did you pay GST on the German dishwasher you bought? Yes. Also on the kiwi made product you bought too. Consumption tax

I didn't know one could buy stuff from overseas like a work phone and then claim the excluding GST price as expense. I thought it had to be in NZ.

Ok .. with GST when this comes into force this can part of the "GST Return".

If it’s business

As a dedicated work phone. One could even get printer ink overseas as it is nearly half price to NZ.

frankv

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#2006092 1-May-2018 15:51

Wonder if the Govt realises how Wild West AliExpress is? e.g. an offer, completely unprompted, from a supplier on AliEx to invoice my item at whatever price I wanted. I wouldn't trust them to collect GST for me!

"Oh no, hgonourable tax minister. We only collected $23.75 in GST this month".

Benoire

2798 posts

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#2006093 1-May-2018 15:53

frankv:

Wonder if the Govt realises how Wild West AliExpress is? e.g. an offer, completely unprompted, from a supplier on AliEx to invoice my item at whatever price I wanted. I wouldn't trust them to collect GST for me!

"Oh no, hgonourable tax minister. We only collected $23.75 in GST this month".

It appears that AliEx would have to show this on the order page, so unless you can get a custom order page as a link for you to click on, all the sellers would have it added before you can purchase.

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