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Topic # 87236 23-Jul-2011 11:14
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http://www.gpforums.co.nz/showthread.php?s=&postid=8202555#post8202555


As per thread above, doing a bulk buy for 8 people

Got the call back from ek1ng

$829 for each phone including shipping, 8gb SD card, 8cases and 8 screen protectors, New Zealand charger, English manual and default language. Probably the best deal so far..?

1 year warranty through eking only, NOT Vodafone. Will be shipped within 3-5 working days from supplier to New Zealand

There's a few conditions - must be paid by cash ONLY and no gst will be applied, so no GST invoice but a proof of purchase will be attached for warranty purposes

Please PM on GP or post here if you're seriously interested only

Might pass on the lead to Flukey on GP as I cbf handling bulk transactions



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  Reply # 497048 23-Jul-2011 11:18
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There's a few conditions - must be paid by cash ONLY and no gst will be applied


1. Breaking the law.
2. Pretty sure no invoice will be supplied then either.





Do whatever you want to do man.

  



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  Reply # 497069 23-Jul-2011 12:20
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billgates:
There's a few conditions - must be paid by cash ONLY and no gst will be applied


1. Breaking the law.
2. Pretty sure no invoice will be supplied then either.



Doesn't really matter does it? As long as we get our phones at a much cheaper price than NZ's RRP..?

But yeah you're right - there won't be invoice issued, however a proof of purchase will be supplied for warranty claims

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  Reply # 497107 23-Jul-2011 14:59
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"Doesn't really matter does it?"

It probably matters to the business people running legitimate tax paying operations and contributing their part to the economy...... Doesn't really make for a fair playing field.


Also, a public forum probably isn't the wisest place to publicise those sort of deals. 

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  Reply # 497126 23-Jul-2011 16:14
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Buying from overseas where GST isn't applicable is perfectly legal, and it's smart. If it's an NZ company though that's not legal.




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  Reply # 497133 23-Jul-2011 17:00
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timmmay: Buying from overseas where GST isn't applicable is perfectly legal, and it's smart. If it's an NZ company though that's not legal.

Maybe there is a simple misunderstanding there. Hard to see how they could legally avoid GST. If they were trading under the yearly minimum* somehow then I guess that would be legal. In reality I can't see how they could be under that.

My understanding is all personal use imports (eg; books) are subject to GST. Anyway, this is what the lady from customs explained to me when she released my $1.2k worth of new books for personal use mailed from the U.S a couple of years back. I had to pay GST to get them off hold. My guess is, customs only target the larger packages for actual enforcement.

So even if they were sending it from another company direct to you, it would still be subject to GST.

*IRD website: You must register for GST if you carry out a taxable activity and if your turnover: was over $60,000 for the last 12 months, or is expected to go over $60,000 for the next 12 months You can choose to register for GST even if your annual turnover it less than $60,000. This is referred to as voluntary registration.

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  Reply # 497139 23-Jul-2011 17:08
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It's quite simple to avoid GST - you simply don't issue an invoice for the goods and make the stock "disappear".

Wouldn't surprise me if they back down on the deal now that it's been put out there in the open. No sane company publically does a cash deal like that unless they want the attention of IRD.


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  Reply # 497241 23-Jul-2011 23:48
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gzt:
timmmay: Buying from overseas where GST isn't applicable is perfectly legal, and it's smart. If it's an NZ company though that's not legal.

Maybe there is a simple misunderstanding there. Hard to see how they could legally avoid GST. If they were trading under the yearly minimum* somehow then I guess that would be legal. In reality I can't see how they could be under that.

My understanding is all personal use imports (eg; books) are subject to GST. Anyway, this is what the lady from customs explained to me when she released my $1.2k worth of new books for personal use mailed from the U.S a couple of years back. I had to pay GST to get them off hold. My guess is, customs only target the larger packages for actual enforcement.

So even if they were sending it from another company direct to you, it would still be subject to GST.

*IRD website: You must register for GST if you carry out a taxable activity and if your turnover: was over $60,000 for the last 12 months, or is expected to go over $60,000 for the next 12 months You can choose to register for GST even if your annual turnover it less than $60,000. This is referred to as voluntary registration.


It would usually be levied by customs, it's not the responsibility of the overseas firm to charge it. If they can get it by customs somehow then that's somewhere between clever and illegal. Not sure which.




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  Reply # 497273 24-Jul-2011 09:04
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It would usually be levied by customs, it's not the responsibility of the overseas firm to charge it. If they can get it by customs somehow then that's somewhere between clever and illegal. Not sure which.


That would suggest either :

a) you gamble whether you have to pay eking gst or not - which is similar to now when you privately import something. As a bulk buy however, you might get hit with those costs if they get picked up in customs reducing the value of the 'deal'

b) they know how to actively avoid paying gst at the border. As a business, being clever to perform an illegal task doesnt give me one bit of confidence in handing them any money. Good deal or not..... 

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  Reply # 497291 24-Jul-2011 09:40
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gzt:
timmmay: Buying from overseas where GST isn't applicable is perfectly legal, and it's smart. If it's an NZ company though that's not legal.

Maybe there is a simple misunderstanding there. Hard to see how they could legally avoid GST. If they were trading under the yearly minimum* somehow then I guess that would be legal. In reality I can't see how they could be under that.

My understanding is all personal use imports (eg; books) are subject to GST. Anyway, this is what the lady from customs explained to me when she released my $1.2k worth of new books for personal use mailed from the U.S a couple of years back. I had to pay GST to get them off hold. My guess is, customs only target the larger packages for actual enforcement.

So even if they were sending it from another company direct to you, it would still be subject to GST.

*IRD website:?You must register for GST if you carry out a taxable activity and if your turnover:?was over $60,000 for the last 12 months, or?is expected to go over $60,000 for the next 12 months?You can choose to register for GST even if your annual turnover it less than $60,000. This is referred to as voluntary registration.


You paid GST on the books because you bought in $1200 worth . If you only bought in a few there would be no GST..




Regards,

Old3eyes


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  Reply # 497307 24-Jul-2011 10:47
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old3eyes: You paid GST on the books because you bought in $1200 worth . If you only bought in a few there would be no GST..

Yes. In addition, I suspect a key factor was having them sent to my work address. It was apparent during my conversation with Customs that they had assumed it was a commercial transaction and I was a company attempting to get away with GST avoidance on an import.

There is an article from consumer magazine that details the current practice, which includes:

"Under the Customs and Excise Act, if the duty and GST to be paid is less than $50, it is not collected"

"From July, the New Zealand Customs Service will begin applying an import transaction fee (ITF) of $24.75 ($22 plus GST) to a range of personal imports that attract GST and import duty.
Generally the ITF will apply to goods valued over $400 but at times [in particular circumstances actually, it is not arbitrary] packages valued at less than $400 will attract the fee"

"A MAF Biosecurity system entry levy (BSEL) of $12.50 (including GST) will also be charged whenever an ITF is applied"

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  Reply # 497323 24-Jul-2011 12:12
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I had two packages come into the country one day, each with a value less than $400. They added them together and charged me GST. I'd pay shipping twice to avoid it. Oh well.




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