GST on imported goods still happening December 1st?

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mr_shady

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#259875 27-Oct-2019 20:07

Hi, was wondering if anyone knows what the status of this law is? It was supposed to come in on October 1st then got pushed back to December 1st. My googling however comes up with nothing for this at all, no media reports, no government press releases, nothing just an a few pages on the ird page.

https://www.classic.ird.govt.nz/campaigns/2018/gst-policy-update.html

Does anyone know if this law in still coming into effect on December 1st? Should I go on a online spending spree in the next few weeks? 😂

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#2344250 27-Oct-2019 20:56

Ahh, so that's what happened! I bought a bunch of stuff last month, thinking it was October, and then wondered why the likes of Amazon still aren't collecting GST.

SirHumphreyAppleby

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#2344259 27-Oct-2019 21:27

Should you go on a spending spree?

Depends where you're buying from. Amazon/AliExpress/eBay? I'd say yes.

Elsewhere? Depends if they register or exceed the $60k limit. Remember, the limit for collecting the additional customs and biosecurity fees is also going up, so if they retailer isn't playing nicely or doesn't have to, you're better off waiting if doing larger purchases.

bigalow

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#2344277 27-Oct-2019 23:41

got a email from one of the USA companies i get hosting from is going to charge me GST from 1 december

wellygary

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#2344306 28-Oct-2019 08:32

https://www.customs.govt.nz/about-us/news/important-notices/new-gst-rules-for-low-value-imported-goods/

It’s all go for 1 December

rugrat

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#2344380 28-Oct-2019 12:29

biggal:

got a email from one of the USA companies i get hosting from is going to charge me GST from 1 december

I don’t get that. Remote services for companies over $60000 was suppose to be charged from 1 October 2016. AKA The Netflix Tax.

https://www.classic.ird.govt.nz/industry-guidelines/non-res-bus-gst/online-services/non-res-bus-gst-online-services.html

rb99

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#2344388 28-Oct-2019 13:06

Any thought re timing on this ? i.e. purchase date vs date of entry into country ?

I guess if Amazon etc apply it properly its purchase date, but what if it isn't applied properly or I dunno, it takes a month to arrive, or have I answered my own question already.

“The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness.” -John Kenneth Galbraith

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bigalow

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#2344446 28-Oct-2019 17:08

rb99:

Any thought re timing on this ? i.e. purchase date vs date of entry into country ?

I guess if Amazon etc apply it properly its purchase date, but what if it isn't applied properly or I dunno, it takes a month to arrive, or have I answered my own question already.

good question

as i was going to get something on the black Friday sales on Friday 29th November / Sat 30th November NZ time

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#2348470 5-Nov-2019 14:41

Looking at these emails Youshop are sending out, sounds more like its based on date of arrival in NZ - 'may be subject to new GST rules if it reaches customs and border clearance after 00.01 1st December'. Not sure about the significance of 'may'.

Not looking good for Black Friday then, unless the gst makes little effective difference.

“The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness.” -John Kenneth Galbraith

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Behodar

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#2348475 5-Nov-2019 14:59

YouShop's email has a link to IRD's FAQ. If the total value is less than $1000 then there will be no GST at the border come 1/12.

TENKAN

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#2348477 5-Nov-2019 15:03

So long as the supplier has collected it for them!

networkn

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#2348478 5-Nov-2019 15:05

So what I am trying to determine, is right now, if your order exceeds $400 NZD, not only will you pay GST as it comes in but you will pay around $130 in additional fees.

After the change, for items under $1000 will attract GST from the first dollar, but no $130 fees?

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SirHumphreyAppleby

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#2348481 5-Nov-2019 15:09

networkn:

So what I am trying to determine, is right now, if your order exceeds $400 NZD, not only will you pay GST as it comes in but you will pay around $130 in additional fees.

After the change, for items under $1000 will attract GST from the first dollar, but no $130 fees?

That's my understanding. Everything published to date suggests that if the seller refuses to comply, or is exempt (under $NZ60k in sales to NZ), you won't have to pay unless the import exceeds $NZ1000.

Retailers may be appeased by this change, but in actual fact it becomes much cheaper to import more things, especially as base postage charges increase.

Behodar

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#2348482 5-Nov-2019 15:10

TENKAN: So long as the supplier has collected it for them!

That's not what the FAQ says. It says Customs will collect GST for items over $1000 "if not already collected by the supplier". It says GST is not collected by Customs for items $1000 or less.

https://www.classic.ird.govt.nz/campaigns/2018/gst-policy-update-nz-consumers.html

networkn

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#2348485 5-Nov-2019 15:15

SirHumphreyAppleby:

networkn:

So what I am trying to determine, is right now, if your order exceeds $400 NZD, not only will you pay GST as it comes in but you will pay around $130 in additional fees.

After the change, for items under $1000 will attract GST from the first dollar, but no $130 fees?

That's my understanding. Everything published to date suggests that if the seller refuses to comply, or is exempt (under $NZ60k in sales to NZ), you won't have to pay unless the import exceeds $NZ1000.

Retailers may be appeased by this change, but in actual fact it becomes much cheaper to import more things, especially as base postage charges increase.

Yeah, to be honest, it means items that were over $400 of which I'd like to buy a few, is saving me more money!

trig42

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#2348493 5-Nov-2019 15:33

Also, things like clothing and shoes, which previously attracted Duty, thereby lowering the threshold (as you had to add 10% to the price, as well as GST) will no longer attract duty or the IETF if total value is under $1000.

I can't see how this is better for local retail - surely it is the clothes/shoes retailers (where the price difference to overseas is quite high) that this will affect.

I have no issues paying GST to Amazon/Youshop if my pair of Levis is $70 from them as opposed to $130 at Just Jeans. I can actually buy more to offset the freight (whereas before, I had to limit my order size to under ~$260NZ so as to not pay the IETF/Duty/GST.

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