Exporting to NZ will become much harder
On the 5th of December 2018, the NZ Parliament introduced the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Bill.
This bill would require offshore suppliers whose annual sales are above $NZD 60,000 to register, collect, and return New Zealand GST on goods valued at or below $1,000 that are supplied to consumers in New Zealand.
What does this mean for retailers?
The new rules would be aimed at imported goods valued at or below $1,000. Suppliers collect GST on low value goods at the moment of sale, and in turn, buyers of these goods will no longer pay Customs tariffs or border security and biosecurity fees. Customs would retain responsibility for collecting GST on imported parcels valued more than $1,000.
The Inland Revenue NZ has provided this table as a guide:
We would encourage you to consider if this applicable to your business. If it is we encourage you to contact your tax advisor for more details.
For more information, please contact Julius Schoenfeld via email at email@example.com or call our office on (03) 9645 9229 if you would like to have a discussion in relation to the above.
The above does not constitute personal advice and cannot be relied upon to make any investment decisions. The advice does not take into account the reader’s objectives, situation or needs. You should consider the above with a view to your personal circumstances before making any decisions