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  Reply # 1903294 17-Nov-2017 15:26
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wellygary:

 

Corporates (with a few exceptions) generally want to be good global citizens,

 

 

 

 

I don't think this is true. The largest corporates do their best to take advantage of tax loopholes. 

 

 


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  Reply # 1903296 17-Nov-2017 15:30
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Corporates (with a few exceptions) generally want to appear to be good global citizens,

 

...fixed for you.





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  Reply # 1903324 17-Nov-2017 15:47
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As long as the government finds a way for the overseas companies like Amazon or Aliexpress to collect the tax on purchase, I have no problem with paying GST. If it is done via customs were they hold my $2 Aliexpress package and want me to pay GST plus the fantastic $50 or so handling fee, they can keep it.


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  Reply # 1903328 17-Nov-2017 15:58
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frankv:

sbiddle:


If the government cut the de minimis value to $0 then yes you would have to pay GST. The logistics of it were detailed in the NZ post discussion paper on how they would impliment such a process. Assuming the package is handled by NZ Post they will collect the GST and estimate processing costs would be around $20 per item and unless legislation changes were made you'll also have to pay the existing MPI biosecurity charges and customs import fees of $50 so will be paying $70 in fees so the government can collect their 44c in GST.


Of course MPI biosecurity costs would have to drop if every item is charged for as they'll be able to recover their revenue from a lot more people. Assuming both charges were slashed from $50 to $20 it's still going to be steep.


The fact NZ post extimate handling costs of $20 to recover 44c shows the fundamental flaws in trying to collect tax if you scrap the de minimis exemption entirely.



I had thought that the de minimis value was set at NZ$60 because it cost the Govt about that to process, so below that it wasn't worth collecting. However, reading this suggests that it's an arbitrary figure that can be adjusted at will in accordance with Govt policy.


That $50 entry fee, if you have to pay it, really adds a sting to importing items. It seems bizarre to me that the de minimis value doesn't include it. If it was included, then anything imported priced above about NZ$66 would attract Govt charges of $50+GST.


NB that clothing and shoes still have duty on them, so currently you pay duty+GST+entry fee if the ((GST+duty on the goods) plus GST on the freight) exceeds $60 (i.e. if the item exceeds NZ$225 or so, you pay $110 to the Govt).


I'm not sure I agree that protecting the primary industries from imported species is something that importers should pay for. I tend to think it's something that primary industries should pay for, even though it means paying higher prices for milk and cheese. Or that the country as a whole should pay for, since we all benefit from those primary industries. So, even though I rarely import items where GST is payable, I think I'd rather pay (along with every other NZer) an extra $50 per year or whatever in income tax and no entry fees at all.


 



Agreed. And we'll Ignore the fact that almost eveything that primary industry grows, be it animal or plant, is imported.





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  Reply # 1903335 17-Nov-2017 16:15
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frankv:

 

 

 

Yes indeed. Just as the last Government, equally incompetently, said they would do and fell woefully short.

 

 

Really?  I was quite sure that John Key said that it was a good idea but they hadn't found a feasible way to do it.  I don't recall them ever saying "we will definitely do this".

 

The current government has said (at least according to the Herald article that this thread is about) they WILL do it, but have failed to provide details as to how exactly.


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  Reply # 1903422 17-Nov-2017 19:27
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I am less worried about the GST per se than I am about the potential nuisance value and extra costs.

 

If they can seamlessly add GST to my purchases the same way as for NZ retail then I'm not too worried about it. I can see the logic of having GST as a broad-based, simple, and comprehensive tax.

 

However, if it means that my $30 parcel is held up for an extra week or two, because it's held by customs while I am notified that I owe $4.50 in GST and have to make arrangements to pay it before the parcel is released from the customs warehouse,then it will be a nuisance that is out of line with the money at stake.

 

I will be grumpier if I am also charged a $20+ fee in order to make the $4.50 payment and have the parcel released, particularly if it turns out it is costing the government more than they are collecting to cause all this cost and inconvenience.

 

So, it seems like good idea, but only if they can find out how to do it simply, transparently and cost effectively.

 

Having said that, NZ retailers with their high costs, rampant overcharging, poor product range and indifferent service are dreaming if they think this will somehow save them.


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  Reply # 1903440 17-Nov-2017 20:15
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MarkH67:

 

tdgeek:

 

 

 

I didnt realise GST did not apply to gifts. I need to buy one birthday present this weekend, I will ensure it is exempt....

 

 

Nor did any government since GST was introduced, as far as I know.

 

Anyone can claim any merchandise is a gift, but if goods come into NZ with a worth above $400 then they are eligible for GST.

 

I once found out that clothing which is eligible for duty + GST that is more than the threshold amount could be stopped until the duty + GST is paid, even if the total value is well under $400.  They worked out to be a bit pricey for a few T-Shirts, but I couldn't buy the same thing here so I just sucked it up and carried on.

 

 

 

 

I don't know why people keep spreading the myth that gifts exclude you from paying GST. Nothing can be further from the truth.

 

A gift is duty/GST free if it's under NZ$110 - anything above that is treated just like any other item regardless of whether you declare it as a gift or not.

 

 


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  Reply # 1903443 17-Nov-2017 20:17
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MarkH67:

 

frankv:

 

 

 

Yes indeed. Just as the last Government, equally incompetently, said they would do and fell woefully short.

 

 

Really?  I was quite sure that John Key said that it was a good idea but they hadn't found a feasible way to do it.  I don't recall them ever saying "we will definitely do this".

 

The current government has said (at least according to the Herald article that this thread is about) they WILL do it, but have failed to provide details as to how exactly.

 

 

Judith Collins came out on Wednesday saying they were planning to introduce it but still had fundamental issues to overcome before this could be done.

 

People need to remember this is an issue that every country in the world is grappling with. Aussie are the only ones who have tried to do something, and even then it's highly likely to implode because they don't have answers as to how they can implement it fully either.

 

 

 

 


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  Reply # 1903516 18-Nov-2017 00:36
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sbiddle:

 

 

 

Judith Collins came out on Wednesday

 

 

 

 

 

 

 

 

Nearly choked on my tea there for a moment..!






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  Reply # 1903522 18-Nov-2017 01:52
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Maybe GST has passed it's use by date.
Maybe less hassle to tax income as it's earn't rather then spent.
Realise that makes it easier for some to tax dodge, but seems there's lot of costs with trying to put it on imports, and guessing it must be a big amount for them to make such a fuss over it.

Also then won't have to try and get overseas companies to cooperate either.

Edit: People that are saving money do better out of GST, as have more money after income tax, then if use those savings to buy something GST exempt like an existing house or private sale.

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  Reply # 1903527 18-Nov-2017 07:21
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sir1963:

 

tdgeek:

 

sir1963:

 

tdgeek:

 

sir1963:

 

 

 

I will be REALLY interested in how they are going to handle birthday and Xmas gifts, no government is going to want to look like the Grinch at Xmas time.

 

 

I didnt realise GST did not apply to gifts. I need to buy one birthday present this weekend, I will ensure it is exempt....

 

 

 

 

Ones coming from overseas, lots of families have extended family overseas.

 

 

If I buy a gift at The Warehouse, and the gift comes from overseas, I pay GST. If I import the gift, I should pay GST as its consumed in NZ, as GST is a consumption tax. The gift may be paid for overseas, but its consumed in NZ. If all gifts were all exempt from all other taxes such as duties, levies, then your reasoning would add up.

 

The purpose of GST was to keep it simple. Its not about any particular product as sales taxes were, and it also grabs all spending, including tax free spending, such as theft. The key is its a consumption tax for goods and services consumed in NZ. Gifts aren't GST exempt when we consume them here

 

 

 

 

Oh I understand that, but when Granny sees a pair of booties for their new grandchild and the parent have to shell out $20-$70 for a handling fee that is going to leave a VERY sour taste.

 

Especially as the gift was never purchased here by any NZ resident.

 

 

 

 

This is about GST, not a handling fee.

 

The gift will be consumed in NZ, GST is not a sales, its a consumption tax. I guess the booties have a low value so GST would be insignificant, aside from the fact that there would probably be a small gift exemption.


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  Reply # 1903529 18-Nov-2017 07:26
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MarkH67:

 

Batman:

 

I'm not sure why we are going on about this, it's not happening is it?

 

 

There was an article in the NZ Herald: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11944260

 

Some of us are wondering how it will work and what it will mean.  From what I understand this incompetent government has said this will happen but have come up short on explaining how they will  achieve it.  That is what we are discussing here.

 

If you aren't interested in the discussion here then why on earth are you reading this thread?

 

 

Do you mean the incompetent NZ Govt, or the incompetent Australian Govt or the incompetent Swiss Govt?  Oz is bringing this tax in, NZ is looking at it, and obviously it does not know how it may implement it, it will see how Oz goes which is sensible, and Switzerland is looking into it as well. 

 

This topic is about GST on online purchases, there is a Politics forum you can complain in about the Govt


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  Reply # 1903530 18-Nov-2017 07:31
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J32:

 

As long as the government finds a way for the overseas companies like Amazon or Aliexpress to collect the tax on purchase, I have no problem with paying GST. If it is done via customs were they hold my $2 Aliexpress package and want me to pay GST plus the fantastic $50 or so handling fee, they can keep it.

 

 

I would expect the Amazon and Aliexpress companies will be fine. its just a code in an accounting system to collect it, and pay once every month or quarter. It could be good news for the many teeny overseas sellers, but all in all, 15% on a super good price is no biggie. Its not like it an extra tax, its just the tax that should be but hasn't been collected. 


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  Reply # 1903532 18-Nov-2017 07:37
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MarkH67:

 

frankv:

 

 

 

Yes indeed. Just as the last Government, equally incompetently, said they would do and fell woefully short.

 

 

Really?  I was quite sure that John Key said that it was a good idea but they hadn't found a feasible way to do it.  I don't recall them ever saying "we will definitely do this".

 

The current government has said (at least according to the Herald article that this thread is about) they WILL do it, but have failed to provide details as to how exactly.

 

 

That JK said its a good idea, tell you that it is. The new Govt will bring it in. Why? Its a good idea as stated by JK. This thread shows how complicated it will be to implement. We will see how OZ goes. So why bash the new Govt as they haven't spent the last 18 months working in the issue? Just rant stuff I guess, there is a Politics forum for that. 


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  Reply # 1903533 18-Nov-2017 07:46
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JimmyH:

 

I am less worried about the GST per se than I am about the potential nuisance value and extra costs.

 

If they can seamlessly add GST to my purchases the same way as for NZ retail then I'm not too worried about it. I can see the logic of having GST as a broad-based, simple, and comprehensive tax.

 

However, if it means that my $30 parcel is held up for an extra week or two, because it's held by customs while I am notified that I owe $4.50 in GST and have to make arrangements to pay it before the parcel is released from the customs warehouse,then it will be a nuisance that is out of line with the money at stake.

 

I will be grumpier if I am also charged a $20+ fee in order to make the $4.50 payment and have the parcel released, particularly if it turns out it is costing the government more than they are collecting to cause all this cost and inconvenience.

 

So, it seems like good idea, but only if they can find out how to do it simply, transparently and cost effectively.

 

Having said that, NZ retailers with their high costs, rampant overcharging, poor product range and indifferent service are dreaming if they think this will somehow save them.

 

 

Your 100% right, its all about that. If you look at the big players such as Amazon and Aliexpress, and any others, it should be seamless for them. Given the dodgyness of buying online at overseas outlets, and that these big players have great reputations, I would assume they make up a vast % of the online sales market. If thats the case, then it should be as seamless as it is here, and help them as well (siphoning sales from small overseas outlets due to fees) .

 

NZ Retail

 

I guess if you cant buy it here, you dont spend here. If its cheaper overseas, it still will be. I reckon they actually want a tariff type of scheme, which will be in the form of handling fees, to keep sales here. If Amazon etc register for GST, collect it and pay to the Govt, they wont be any better off, they may well in fact be worse off once all this makes the news and encourages other to buy offshore. 


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